ISMT - capable of giving you decent returns

ISMT an abbreviation for The Indian Seamless Metal Tubes Limited which was promoted in 1977 by a team of technocrats. The company is well managed by Mr. Salil Taneja - Chief Executive Officer (CEO) who has 18 years rich experience in this line of business.

ISMT is one of the most modern alloy Steel plants in India that produces a wide range of alloy steels from 20 to 225 mm diameter.

The Market Cap is Rs. 766 crores, the shares are valued at PE of 12.4 and were last traded at 62.50, the 52 week range being Rs. 64.95 – 29.70. Face Value is Rs.5. Plz visit http://www.indianvalueinvestors.com/2010/07/indian-seamless-metal-tubes-limited.html to view my elaborate write-up on ISMT.

ISMT, recently announced its unaudited results for the 2nd quarter of FY 2010-11. The company has posted a net profit of Rs 24.11 crore for the quarter ended September 30, 2010 as compared to Rs 17.7 crore for the quarter ended September 30, 2009, up 36.21%. Total income of the company has increased 42.21% from Rs 286.89 crore for the quarter ended September 30, 2009 to Rs 408.01 crore for the quarter ended September 30, 2010.

Conclusion : I had recommended the stock when it was quoting at Rs.52.30/share on 22 July 2010 and the stock is up by 19.61 per cent since then. In view of the good quarterly results, expect the upward spike in the stock to continue as we go ahead and expect 75 per cent returns to materialize from current price of Rs.62.50 in about six months time. For more sharper returns, you will need to hold the stock for a longer time horizon.