Kalyani Steels Ltd (CMP-Rs 338)
The company has signed up a memorandum of understanding to invest Rs 6,500 crore in a one million tonne steel plant and a 500 MW power plant at Salboni in West Midnapore. The high-end manufacturing hub will cater to Kalyani Steel’s international clients in the automotive, engineering and infrastructure sectors as well as to Bharat Forge. The plant would essentially produce long products. The project will be completed within 36 to 45 months from the commencement of work. At current market price, stock is trading at 17.1x of its TTM earnings of Rs 20.3. We recommend “ACCUMULATE” on the stock.
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