Tata Steel Long Products Ltd - A multibagger idea for long term

Tata Steel Long Products Ltd

Current price - 730.

It may reach up to 5000 in a time duration of 5 years.

P/E Expansion
Trading at just a p/e of 3. With just p/e expansion to 15, price will go to 3500 and the rest will be taken care by profits of companies.

Company has took a loan of 1400 crore and has setup machinery of 3,560 Crore. With Annual profits of approximate 350 Crore, this will get cleared in 3 years.

Future

The Company is exploring possibilities to reach the name plate capacity of 1 million tonne, coupled with investment in downstream and finishing facilities for balancing the capacity and meeting customer requirements.

Disclaimer - Please do your own research before investing. Not a SEBI registered analyst.

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Why trade breakouts?

Why trade breakouts?

At first, when buying breakouts it looks contradictory to the idea of buying low and selling high. But, it is still advisable to buy breakouts because it gets you on the right side of the market. We should not fight the trend. Markets can remain irrational longer than you can remain solvent.

To improve accuracy on breakouts, we can use the moving averages.

If the prices are above 8EMA, 21 EMA and 8EMA > 21 EMA. Trade breakouts and vice versa for break downs.

Trading 52 week high breakouts is also profitable.

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