*WHY SO BULLISH on Panchmahal Steel*

In our earlier notes, Denofwealth has given steep TP. Reasons:

1) Present capacity utilisation just 30% which can be 50% next year

2) Production capacity 72000 tonnes with 1.50 lac ton melting shop. It gives fair value of Rs 400/share

3) 10 acres of surplus land ( mkt value 100cr+) can be used for big expansion of capacity in 2020

4) BIG CORPORATE TRIGGER: ABC Bearing-Timken type deal in PSL. PSL promoter *WILL* exit after 12-15 months in favour of *oldest steel giant* and stock will be rerated.

_Not for traders as there can be hiccups of profit booking_

_Investors with 2 year patience can reap rich harvest_

TP 300 in 2 years, barring unforeseen circumstances

P.S.: PSL in specialised technical steel making Rods/Wires, not commodity steel, benefits emerging from GST