Rohit Ferro Tech Ltd: On a Super Bullish mood

The stock had outperformed the market over the past one month until 16 February 2012, gaining 19.04% compared with the Sensex's 12.14% rise. The scrip had also outperformed the market in past one quarter, rising 32.95% as against 8.21% rise in the Sensex.
The small-cap company has an equity capital of Rs.55.28 crore. Face value per share is Rs.10.
The offer price of Rs.60 is 72.91% premium to Thursday's (16 February 2012) closing price of Rs.34.70 and 45.28% premium to the ruling market price. 

The operating profit of the company more than doubled in Q3FY12 to Rs.64.94 Cr as against Rs.25.68 Cr in the same period previous year. Net profit of Rohit Ferro-Tech rose 83.27% to Rs.9.86 crore on 46.21% rise in net sales to Rs.420.33 crore in Q3 December 2011 over Q3 December 2010. The EPS of Q3FY12, stands at Rs.1.78 against Re.0.97 in Q3FY11. But one point which would haunt the shareholders is the steady rise in the interest burden, on Q-o-Q basis. The next target for the scrip seems to be Rs.46-51, SL--Rs.38.5.
Rohit Ferro-Tech produces high carbon ferro chrome and manganese based alloys.