COMPANY NAME – ELECTROSTEEL CASTINGS

RECOMMENDATION – BUY
CURRENT PRICE – 46.50
TARGET – 65 to 70
TIME FRAME – 4 to 6 Months

COMPANY BASIC INFORMATION

ISIN Id – INE086A01029
BSE Id – 500128
NSE Id – ELECTCAST
INDUSTRY – Castings & Forgings
Market Cap – 1,574.95
Book Value – 38.72
EPS (TTM) – 6.24
Price/Book – 1.24
Face Value – 1.00
P/E – 7.72
Div(%) – 125.00
Industry P/E – 10.35
P/C – 6.15
Div Yield (%) – 2.59

STOCK PRICE HISTORY (NSE)

All Time High – 1540.00
All Time Low – 12.80
52 Week High – 48.70
52 Week Low – 13.25

WEEKLY CHART

Recommendation-

The stock went under a long consolidation pattern from August 2008 to July 2009. It corrected from 40 in the month of August 2008 to 13 in the month of December 08 and formed a major Bottom. However after rallying to 18 in the month of January 09 it again retraced to 13, retesting the previous lows. From this level the stock formed a Double Bottom Pattern Base and started the up move all the way to 41 in the month of June 09. A close look at the price pattern till now gives a long Rounding Bottom/Saucer Base Pattern (of around 1 year).After touching 41 levels in June 09, it gave an intermediate correction and again bounced forming a Head and Shoulder / Kilroy Bottom. After giving a breakout from the neckline it basked around 40-45 levels for few weeks and in the finally in the last week started a fresh up move. We expect the up move to continue and Recommend a Buy on the stock around current levels with a closing stop loss below 37, for a  short to medium Term price target of Rs.65-70.