*Q4 NP MORE THAN NP OF 9M*

Balasore Alloy Ltd

BAL is 2nd largest producer of Ferro Chrome in India. Co has its _own captive Ore mines_. Hence cost of production of Ferro Chrome per ton is largely fixed.

Balasore alloy had produced 1.22 lac tonnes in FY16.

Production in FY17 should be at least 1.35 lac tonnes

_Co is in position to produce 1.45 lac ton in FY18 as installed capacity is 1.65 lac ton_

Financials:

            9mFY17. FY17E

Sales.    678.      975

NP.         43.52.    88

Equity.    39.44

Balasore made NP of 43.52 cr in 9 month of current year on 39.44 cr Equity. *NP OF Q4 ALONE CAN BE MORE THAN 46 CR* (Result today)

Promoter will also take P. Offer (3rd in 2 years) which shows that prospects of Ferro Chrome industry will remain bright

*For FY18 Balasore can achieve NP of MINIMUM 150 cr*

We expect stock can be 80-85 next week and 110-120 in 4-6 months