BUY NAG FERT @27 TGT 400... TIME FRAME 5 YRS
Nagarjuna Fert will be proved Multi-bagger due to following facts:
-- Plant is situated at Kakinada , where many co's including Reliance
has discovered huge reserves of natural gas, basic raw material for
the fertilizer. Nagarjuna fert will be able to receive sufficient gas
without paying any transportation charges.
-- Expanding capacity from 1.2 million ton to 1.7 million ton,
operational by the end of 2008. It will increase Top line as well as
bottom line without much increasing overheads.
--The value of land at Kakinada is approx.6000 crore,Rs.130/-share at
present and the value will increase with the increased activity of Gas
& oil exploration in that field.
--51% stake in Nagarjuna Oil, 6 Million Ton E.O.U refinery coming up
at Cuddalore (Tamil nadu) in which 26% stake is taken by Tata
Petrodyne, 10% by I.O.C.L and 5% by TIDCO.
--26% stake in Nagarjuna Power, 1015 Mega Watt power plant coming up
at Mangalore, in which 74% stake is with Hyd. based Lanco group.
--Shareholder's will get free shares of NOCL & NPCL.
--International prices of urea are shooting up.
--In the Domestic market no new manufacturing unit is coming up to
bridge supply Demand gap.
-- Total Decontrol of urea is on the card.
--Strong cash flow of Rs.200 cr. Giving Rs.5/-cash EPS. Expect a price
of Rs.400/- within 5. years
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