Target for Prakash Industries over 250: Gajendra Nagpal

ET Now spoke to Gajendra Nagpal, CEO, Unicon Financial Solutions for a fundamental check on Prakash Industries.

Can you please walk us through the targets that you are watching out for for Prakash Industries?

Prakash Industries is one stock where 2 things are going for this company. One is that they are going to increase their sponge iron capacity to double about 2013 plus they are also diversifying into power in a big way.

It's currently 175 megawatt and they propose to take it to 775 megawatt by 2015 with an investment of close to 2500 crore.

These are 2 sectors which are anyways very promising and also, company has execution capabilities that we have seen. One more thing that I want to bring to your notice is that they have got the lowest debt to equity ratio in the industry in a current scenario that is also going to go a long way in making sure that their bottom lines remain healthy.

That is why Prakash Industries is on my screen and I would expect a target of over Rs 250 over next 12 to 18 months time.