Scripscan:Mukand Ltd
cmp:27
Code:500460
Story:Mukand is a Bajaj Group Company making special steel, alloy steel, stainless steel and they are mainly catering to the automobile, engineering and electrical equipment. Apart from that they have a small contribution for material handling equipment also.There has been consistent performance, it is only the value erosion because since we have seen the midcap and midcap stocks getting eroded in last couple of months. Sometimes you see these kinds of stocks if you pick up them up at this stage they can give return of 30-40% maybe over next 12 months. There has been some property sale buzz but I don’t think that is serious news now in respect to the company because they have two plants one at Kalwa and second at Hospet. Hospet we all know that all these companies have been facing problem because of non-availability of iron ore but now with auction and with production by NMDC the situation is getting resolved for all these companies.It is a Rs 3000 crore topline company with EPS of close to Rs 4 and considering the replacement cost or rich assets held by the company they may or may not get monetised because in Kalwa they have been holding a large chunk of land but I don’t think that is really a serous news for the stock to enter into because I don’t think that is likely to happen. But the operational performance of the company is likely to get improved largely at the Hospet plant and that should improve the profitability in the time to come. So taking that into consideration those who have been hunting for some midcap ideas can look to buy this stock with a view of about 18 months.
