Tit - bits

#The scrip of Graphite India Ltd  (Rs.313.50) was

recommended yesterday in this blog as a BTST call. However, the short term traders can also,  play on it,  with targets of Rs.372/379.  

The stock fell from a high of Rs.1100 plus made during 2018 - 19 period; after the government of India removed the anti dumping duty  on cheap Chinese graphite imports. 

It is pertinent to mention here that the levy of anti-dumping duty and strong demand has pushed up domestic graphite electrode prices by over five times in the last three years to $15,000 a tonne, from $2,350 a tonne in June 2015. The rise in graphite prices has pushed up steel making cost by about ₹1,500-1,700 per tonne.

However, Ravi Jhunjhunwala, Chairman and Managing Director, HEG, one of the largest graphite manufacturers in India, said aroud a couple of months back that the graphite prices are going up due to strong demand and not due to short-supply. 

It is interesting to note that the rise in graphite prices have raised the steel making cost by only 6% from 2% and is surprising that steel companies are not targeting the rise in cost of other raw materials. Therefore,  there are chances of imposing anti dumping duty again on cheap Chinese imports, in the ensuring Budget, to protect the domestic graphite producers.

Graphite exports from India, which accounts for 24% of global supply, are expected to touch ₹9,000 crore this year compared to ₹1,800 crore.

Moreover, the shifting of 60 million tonne steel production from blast furnace to electric arc furnace post shutdown of pollutant blast furnaces in China has pushed up demand for graphite across the globe. Graphite electrodes are used in steel making as a heating element. Every tonne of steel produced through electric arc furnace requires about 2 kg of graphite electrodes. Graphite electrodes production is dominated by only two companies Graphites India and HEG Ltd. Hence, we can look for doubling of the share price of Graphite India Ltd,  within a year, especially when new needle coke making capacities were being installed and commissioned in China, which is likely to check their unrealistic price rise.

#The scrip of National Fertilizers Limited (NFL), a Miniratna (Cat-1) company today closed at Rs.29.45 in the NSE after making an intraday high of Rs. 30 40. It is an India state owned producer of chemical fertilizers, organic fertilizers and industrial chemicals. As of 2018, it was the second largest producer of fertilizers in India. With food inflation shooting over the roof and government of India focussing on giving relief to the farmers,  I feel the share price of NFLr is expected to make new 52 - week high in the coming days. 
Wikipedia: NFL, incorporated in 1974 is India's largest Central Public Sector Enterprise (Government of India Undertaking) in Fertilizer Sector with a turnover of over Rs.75 billion. Coming under the administrative control of Ministry of Chemicals and Fertilizers, it is the second largest producer of the key fertiliser urea in India. NFL has five gas-based ammonia-urea plants viz Nangal and Bathinda in Punjab, Panipat in Haryana and two at Vijaipur (Madhya Pradesh).

#The share of Steel Authority of India Ltd (SAIL) recommend around Rs.37, some weeks back made a high of Rs.51.75 yesterday. The demand for steel is expected to remain buoyant, as the construction activity picks up post monsoon. Buy on dips. 

#Those who are having a portfolio size of around Rs. 3-5 lakhs can join my profit sharing scheme in the ratio of 70:30 between you and me. It doesn't matter in which part of the world you live as long as you have a Demat account to do the trade -- NRIs and PIOs are welcome.