Tulsian told CNBC-TV18, "Kalyani Steel is a Kalyani Group company having promoter stake of 60%. They are into making of the forging and engineering grade alloy and carbon steel. If you see again tomorrow we have the hearing at the Supreme Court, probably the judgement will get delivered by the Supreme Court in the Karnataka mining ban case in which it is expected that the A category mines, which are about 45 mines are allowed to restart and this company falls in that category. If that order comes in probably as indicated by the management they have hinted that in next two to three months they will be able to restart the mining operations."
He further added, "They are holding mines of the very high iron contents with FE content of 65% with a reserve of about 27 million tonne and looking to their annual requirement of one million tonne of iron ore that is enough for them to run their plant for next 27 years."
"They have very sophisticated plants in two states Karnataka and Andhra Pradesh and I think largely based on that news I think that this stock looks quite good because for first nine months their performance has not been that great. They had a PAT of about Rs 8 crore, while for whole of FY11 they had a PAT of Rs 56 crore. So in my view once the mining operations if allowed to them FY13 can have a PAT of close to about Rs 50-55 crore and going forward maybe for FY14 it can shoot up to as high as Rs 75 crore with a very low equity base and with a very good working and that translates into an earning per share of close to about Rs 13-14 for FY13 and about Rs 16 for FY14."
"So largely on this news I am expecting the share to start doing quite well and one can take a conservative target of about Rs 75 in six months, but if it is held for a year or so it can breach the three digit mark as well."
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