Jai Balaji Industries Limited (JBIL) is gradually transforming itself from an intermediary steel manufacturer into an upstream-to-downstream steelmaker. Its recently commissioned ductile iron (DI) pipe capacity of 0.24 mtpa would drive revenue CAGR of 26.9% over FY10- 2 and generate additional EBIDTA of ~US$ 300/tonne. Furthermore, commencement of captive mining operation during FY12-14 would result in structural improvement in margins on a y-o-y basis. Successful execution of Purulia Phase-I expansion of 2mtpa metallics and 400 MW of power by FY13 could drive growth further over FY13-15. We estimate JBIL delivering a strong 165% EPS CAGR over FY10-12 and initiate coverage with a BUY on the stock wi a target price of Rs 250.