Buy JBF Industries

Question: on JBF Industries

 

Dear Sir

 

I follow your advices on my investment decisions. Last pick was welspun syntex and hopeful of meeting the target soon. I would like to get your advice on another script, which is JBF Industries.

 

I have made just my own fundamental analysis and it shows growing operating revenue, growing operating profit ( except on 2009, the growth was not par with operating revenue, because of some  other expenditure under the head miscellaneous expenditure to the tune of Rs. 77 crores). Moderate EPS, P/E, 60% dividend declared..... last two quarter results are also looks promising. Currently trading at Rs. 192 and book value is Rs. 119, mark cap is Rs.1,367 crores. Kindly advice us.

 

Powerfulpicks answer:

 

Nov 22: JBF touched 228 on Oct 28 and met both my below targets. But it ran up too fast. My call was at 167 and it rose 36% in 1 month, after my call. It now needs to cool off a bit. I do not see much downside below 188; at most it can slip to 178-180, if markets continue to be gloomy. One can buy in small quantities now and add more as it stabilizes. Target can be 255 in 6-8 months (+32%).

 

Sep 20: JBF Industries broke above its resistance level and now is poised for some nice up moves. Its products are used by textile industry as well as the food and beverages segment of the FMCG industry. Some usage in pharma sector as well. All these end use sectors are growing quite rapidly. This stock gives dividends regularly and with its expansion plans along with help from Oman Oil, it will be able to keep up with the increasing demand of the next 2-3 years. CMP is 167 So it is a long term play. But I am fairly bullish with JBF in the medium term period as well, with a 6 month target of 192 (+15%).

Oct 13: JBF Industries met its target of 192 and just touched 196.45. Book profits now for 80% of your holdings and hold the rest for a target of 212. Hope some you made some good money on this call!