Prakash Industries is a Haryana based multi division company. Company’s main operation is in steel sector and having presence in Coal mining,Power,Ferro Alloys,PVC Pipes..etc. Company ‘s integrated steel plant is located in Champa , Chhattisgarh. Company has been allotted three coal blocks at Chotia, Madanpur & Fatehpur and already started operations in Chotia.Using Waste Heat Recovery Boilers Company currently operating a 100 MW captive power plant and planning to expand the capacity to 725 MW.Prakash also got permission to start operations of Iron Ore mines in Chattisgarh and Orissa.Company also producing Ferro Alloys which is a raw material used in Steel manufacturing .Spong iron manufacturing division showing good performance in recent times.Its integrated nature helping the company to ensure uninterrupted raw material availability and high margin. Its strategy to use a major portion of its steel production for converting into high margin end products like TMT and wire rods are paying off. For the quarter ended December 2011, Prakash posted a turnover of Rs.520 Cr and a net profit of Rs.66 Cr . At CMP of Rs.61 it is trading at a P/E of just 3 on the expected FY 13 EPS of Rs.20+ which is cheapest among the integrated steel producers.The main risk factor is the allegation related with coal mining by the company in Chhattisgarh. Risk takers can BUY for medium to long term at CMP of Rs.61
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