BUY ROHIT-FERRO TARGET 200

DATE -15/08/08

CMP - 127.40

TARGET - 180

STOP LOSS - 110






Report card

PE ratio	5.54	13/08/08
EPS (Rs)	23.28	Mar, 08
Sales (Rs crore)	309.67	Jun, 08
Face Value (Rs)	10
Net profit margin (%)	10.07	Mar, 07
Last dividend (%)	15	23/06/08
Return on average equity	16.93	Mar, 07

Simple Moving Averages

Days	BSE	NSE
30	132.42	132.67
50	136.83	137.03
150	110.23	110.48
200	102.70	102.90

COMPANY TEHNICALS

A well-differentiated player in the Ferro Alloy manufacturing sector, Rohit Ferro-Tech Limited (RFTL) operates with a vision that inspires, and a business strategy that sustains. An active player in both domestic and international markets, RFTL’s product mix is aimed at catering to the high demand globally as well as maximizing on returns. The Company manufactures High Carbon Ferro Chrome (H.C.FeCr), Ferro Manganese (FeMn) and Silico Manganese (SiMn) through Submerged Arc Furnace (SAF) route.

RFTL had started it’s operations in October’03 with a Ferro Alloy plant comprising of 2x9 MVA Submerged Arc Furnaces, and then, expanded it’s capacity by installing further 2x9 MVA furnaces to produce 55,000 TPA of High Carbon Ferro Chrome at Bishnupur in the state of West Bengal. Currently, the same unit is again undergoing an expansion with another furnace of 9 MVA to enhance Bishnupur plant’s total capacity to 70,000 TPA.

The Company has also set up another Ferro Alloy plant comprising of 4 x 16.5 MVA Submerged Arc Furnaces at Kalinganagar Industrial Complex, Jajpur in the state of Orissa to produce 110,000 TPA of Ferro Alloys comprising of High Carbon Ferro Chrome, Silico Manganese & Ferro Manganese with the versatility of all the furnaces to produce any of these kinds of Chrome or Manganese based ferro alloys.

With the total combined capacity of more than 175,000 TPA, the Company is trying to enhance its competitive advantage and has also applied for mining lease for Chromite & Manganese Ore to the State Government of Orissa. Rohit Ferro-Tech Limited was incorporated on 7th April 2000 under the aegis of Impex Group having interest in manufacturing, trading, import & export of various kinds of Ferro Alloys. Since then, the Company has come a long way to position itself as a leading producer of High Carbon Ferro Chrome. Being accredited ISO 9001:2000 in August 2004 and receiving Two Star Export House Status are some of the notable milestones in it’s journey.

OUR VIEW....
1.Company is showing good track records in annual sales with Rs 613.11 cr in Mar 2008 vs Rs 199.17 in Mar 2007

2.Company registered its profit Rs 115.27 cr in 2008 vs Rs 28.18 cr in 2007 . Company Net Profit Margin is 12.83% vs 9.44% yearly.

3.Company PAT 20.44 in 2008 vs 7.75 in 2007

4.Stock gained a great momentum in this bearish market.With this view it may give a good returns to investors in near term.For long term this stock will give good returns.In charts company is strong..

5.One should buy this stock at dips, so that avg can be lowered. and can put stop loss at 100-110.