Jai Balaji Industries Ltd: Banking on the Coke Oven Plant & Mines

I am going to increase the price of my Paid Packages from 1st May, 2012. Also, if anyone is joining my brokerage house then he would get 2 years subscription free of charge and then discounts too in future subscriptions. If one is going for Profit Sharing Arrangement with my brokerage house, then the Paid Subscription is free till the investors continues with my firm. The brokerage and other things will be at par with ICICI Securities.

The Company has high hopes on 0.35 million tons Coke Oven Plant along with waste heat recovery boiler of 80 TPH at its unit  at Durgapur, West Bengal. The Company has already envisaged to set up 5 million tonne integrated Steel  Plant, 3 million tonne Cement Plant and 1,215 MW Power Plant in  Raghunathpur, in the District of Purulia in West Bengal and the Company has received adequate financial assistance from various quarters for the 1st phase.

Recently, there were media reports that, Mr Partha Chatterjee, the minister of Industries, West Bengal has asked Jai Balaji Industries to start work within the next three years. Mr Chatterjee said that “The land they have been allotted will have to be regularized.” This is positive for the shareholders as we now have a definite time frame as to when the work on the project would start. 

Moreover, the minister said, "The government will strike a new agreement with these three companies (Jai Balaji Industries, Shyam Steel and Adhunik Industries) and each point in the previous deal signed more five years ago during the Left Front regime would be re examined". This is also positive as the things will be negotiated taking into consideration the current business environment and also, the company can bargain for new incentives and sops.

I have positive outlook for the scrip, and is expecting a target of Rs.60-65 in the coming days. Investors should accumulate the scrip in all declines and wait for a break out of the upward channel at XXXX (this is for the Paid Service Members), to get a meaningful upside.