This week, in the section stock tips, is a technical stock tip published by stock broker company Aditya Birla Money.
Aditya Birla Money has published in it's stock tips a report on GAIL. According to this report, GAIL is well placed and is all set for next leg of up move with targets of higher levels.
Pattern wise, GAIL has broken out of Bullish Inverted Head and Shoulder formation, it has been oscillating within a band with lower highs and lower lows thus taking a shape of a probable symmetrical triangle. Normally symmetrical triangle are continuation pattern and such pattern post Inverted Head and Shoulder breakout adds further weight to the bullish argument.
The stock is well placed and post termination of the said triangle it is all set for next leg of upmove targeting higher levels. Buying stocks of GAIL is recommended above Rs 482 with a stop-loss of Rs 466 for a possible target of Rs 515 levels.
Rakesh Jhunjhunwala's Next Stock To Buy
Market rumors are buzzing that Delta Corp (BSE: 532848, NSE: DELTACORP) is likely to allot preferential shares to ace investor and stock trader Rakesh Jhunjhunwala.
The money raised is likely to be used for taking a majority stake in Advani Hotel. The company needs nearly Rs 100 crore for upping its stake to over 51%, and to make 20% open offer.
Delta Corp owns 35% stake in Advani Hotels. Advani Hotels operates Ramada - a 5 star in Goa. Market buzz is that the land sale money of Rs 250 crore could be used by the company to take majority control in Advani Hotels.
Delta Corp operates in four business segments i.e. entertainment and gaming, real estate, hospitality and aviation, plans to invest part of its land sale money into its gaming and hospitality business.
Delta Corp's FY10 consolidated sales are at Rs 132.5 crore, PAT is Rs 12.1 crore and EPS was Rs 0.71. In FY10, revenues from hospitality and gaming are at Rs 65.9 crore versus Rs 21.8 crore.
As per technical analyst, Ashwini Gujral, Delta corp could hit upto Rs. 90 levels in short term, so stock traders who would like to trade the stock for quick gains may buy stocks of Delta for this target. Long term investors, after confirming the news that Rakesh Jhunjhunwala is really investing in this stock, may wait for correction and consider buying stocks for long term. If the news is false, stock may correct significantly.
The money raised is likely to be used for taking a majority stake in Advani Hotel. The company needs nearly Rs 100 crore for upping its stake to over 51%, and to make 20% open offer.
Delta Corp owns 35% stake in Advani Hotels. Advani Hotels operates Ramada - a 5 star in Goa. Market buzz is that the land sale money of Rs 250 crore could be used by the company to take majority control in Advani Hotels.
Delta Corp operates in four business segments i.e. entertainment and gaming, real estate, hospitality and aviation, plans to invest part of its land sale money into its gaming and hospitality business.
Delta Corp's FY10 consolidated sales are at Rs 132.5 crore, PAT is Rs 12.1 crore and EPS was Rs 0.71. In FY10, revenues from hospitality and gaming are at Rs 65.9 crore versus Rs 21.8 crore.
As per technical analyst, Ashwini Gujral, Delta corp could hit upto Rs. 90 levels in short term, so stock traders who would like to trade the stock for quick gains may buy stocks of Delta for this target. Long term investors, after confirming the news that Rakesh Jhunjhunwala is really investing in this stock, may wait for correction and consider buying stocks for long term. If the news is false, stock may correct significantly.
Should you buy IPO of Microsec Financial Services?
Checkout IPO information of Microsec Financial Services and whether you should buy IPO of the company.
Microsec Financial Services is entering primary market on Friday with an IPO of 12.5 million shares. The company has fixed IPO price band in the range of Rs 113-118 per share.
Issue Open: September 17, 2010
Issue close: September 21, 2010
Price Band: Rs. 113 - Rs. 118 Per Equity Share
Minimum Bid Size: 52 Equity Shares
Face Value: Rs. 10 Per Equity Share
Issue Type: 100% Book Building
Maximum Subscription Amount for Retail Investor: Rs. 100000
Microsec has a business model providing various financial products and services to client base of retail investors, high net worth individuals, companies and institutions.
The Company plans to use the proceeds for expansion of its financing business, expansion of Microsec Capital Limited's (a subsidiary of the company) domestic operations by increase in network of branches, enhancing Microsec Capital Limited's existing technological capacity and general corporate purposes.
IPO Rating
CRISIL has assigned an IPO Grade 2 to Microsec Financial Services Ltd IPO . This means as per CRISIL company has 'Below Average Fundamentals'.
Looking at IPO grading of 2 out of 5 indicating below average fundamentals, the IPO price seems to be costly for investors. I had a look at company website and the stock reports they provide. They claim to have a team of more than 10 - 11 investment analysts. Still they could not make their own stock offer attractive for retail investors! That is the most strange part of it. If these guys can not understand IPO grades and make it attractive for their retail investors in IPO, how much would they care for investors in future? When it comes to money, all conscience is lead by greed! You decide whether you want to buy IPO of Microsec, I am not going to buy it.
Microsec Financial Services is entering primary market on Friday with an IPO of 12.5 million shares. The company has fixed IPO price band in the range of Rs 113-118 per share.
Issue Open: September 17, 2010
Issue close: September 21, 2010
Price Band: Rs. 113 - Rs. 118 Per Equity Share
Minimum Bid Size: 52 Equity Shares
Face Value: Rs. 10 Per Equity Share
Issue Type: 100% Book Building
Maximum Subscription Amount for Retail Investor: Rs. 100000
Microsec has a business model providing various financial products and services to client base of retail investors, high net worth individuals, companies and institutions.
The Company plans to use the proceeds for expansion of its financing business, expansion of Microsec Capital Limited's (a subsidiary of the company) domestic operations by increase in network of branches, enhancing Microsec Capital Limited's existing technological capacity and general corporate purposes.
IPO Rating
CRISIL has assigned an IPO Grade 2 to Microsec Financial Services Ltd IPO . This means as per CRISIL company has 'Below Average Fundamentals'.
Looking at IPO grading of 2 out of 5 indicating below average fundamentals, the IPO price seems to be costly for investors. I had a look at company website and the stock reports they provide. They claim to have a team of more than 10 - 11 investment analysts. Still they could not make their own stock offer attractive for retail investors! That is the most strange part of it. If these guys can not understand IPO grades and make it attractive for their retail investors in IPO, how much would they care for investors in future? When it comes to money, all conscience is lead by greed! You decide whether you want to buy IPO of Microsec, I am not going to buy it.
Stock report : Corporation Bank
Corporation bank is a good banking sector stock to buy for mid and long term. Let's see why should we buy stocks of Corporation bank in our portfolio.
Corporation Bank is an India-based banking company. The segments of the Bank include treasury operations, wholesale banking, retail banking and other banking operations. The services provided by the Bank include electronic remittances, Internet and mobile banking, Corp New Gen, online educational loan, Corp Invest Shoppe, mobile payment facility, and branchless banking. The Bank offers various types of deposits, which include current accounts, savings bank accounts, fixed deposits, cash certificates, money-flex deposits and recurring deposits.
It offers a range of personalized Non-Resident Indian (NRI) services. During the fiscal year ended March 31, 2010, the Bank had opened 101 branches across the country thereby touching 1155 branches. The Bank has 1079 automated teller machines (ATMs) and 1200 branchless banking units thereby having a total functional units of 3434.
Corporation bank has witnessed 30% credit growth in FY10 which is very good in banking space when compared to other peers. Bank should continue with the same growth rate in future too. This bank traditionally has it's strong client base and expansion only in Southern and Western India. Here they had current and savings account ration of only around 30% Bank's historical Loan to deposit ration was only around 60% Due to these factors, bank had it's Net Interest Margin around 2.5%
Corporation bank has started expanding in North India as well as in Tier II cities allover India. Nonperforming loans of bank are around 1% which is not risky at all. Price to book value is around 1.5 which is good. Dividend yield at current stock price comes to be 2.6% which is not bad.
Market Cap 9114.18
EPS (TTM) 86.64
P/E 7.33
P/C 6.96
* Book Value 402.60
Price/Book 1.58
Div(%) 165.00%
Div Yield(%) 2.60
Market Lot 1.00
Face Value 10.00
Industry P/E 11.57
India's banking and finance sector is only expected to grow from current state of economy. Any good bank should be able to grow reasonably with Indian growth story and fetch good returns on investment.
Considering the expansion, margins for bank should grow in future. This stock did not participate much in recent banking rally. Current stock price is at Rs. 635. If any correction takes place in stock market, Corporation bank is definitely a good banking sector stock to buy around 500 to 550 stock price levels for long term.
Corporation Bank is an India-based banking company. The segments of the Bank include treasury operations, wholesale banking, retail banking and other banking operations. The services provided by the Bank include electronic remittances, Internet and mobile banking, Corp New Gen, online educational loan, Corp Invest Shoppe, mobile payment facility, and branchless banking. The Bank offers various types of deposits, which include current accounts, savings bank accounts, fixed deposits, cash certificates, money-flex deposits and recurring deposits.
It offers a range of personalized Non-Resident Indian (NRI) services. During the fiscal year ended March 31, 2010, the Bank had opened 101 branches across the country thereby touching 1155 branches. The Bank has 1079 automated teller machines (ATMs) and 1200 branchless banking units thereby having a total functional units of 3434.
Corporation bank has witnessed 30% credit growth in FY10 which is very good in banking space when compared to other peers. Bank should continue with the same growth rate in future too. This bank traditionally has it's strong client base and expansion only in Southern and Western India. Here they had current and savings account ration of only around 30% Bank's historical Loan to deposit ration was only around 60% Due to these factors, bank had it's Net Interest Margin around 2.5%
Corporation bank has started expanding in North India as well as in Tier II cities allover India. Nonperforming loans of bank are around 1% which is not risky at all. Price to book value is around 1.5 which is good. Dividend yield at current stock price comes to be 2.6% which is not bad.
Market Cap 9114.18
EPS (TTM) 86.64
P/E 7.33
P/C 6.96
* Book Value 402.60
Price/Book 1.58
Div(%) 165.00%
Div Yield(%) 2.60
Market Lot 1.00
Face Value 10.00
Industry P/E 11.57
India's banking and finance sector is only expected to grow from current state of economy. Any good bank should be able to grow reasonably with Indian growth story and fetch good returns on investment.
Considering the expansion, margins for bank should grow in future. This stock did not participate much in recent banking rally. Current stock price is at Rs. 635. If any correction takes place in stock market, Corporation bank is definitely a good banking sector stock to buy around 500 to 550 stock price levels for long term.
Mid Cap Stock To Buy : Onmobile Global
I am a technology guy and I am always in search of future technology opportunities where I should invest in stocks of those companies and achieve best investment returns. Onmobile global is one mid cap stock to buy from such space, which has excellent chances to grow at very good pace.
OnMobile Global Limited (OnMobile) is a global value added services (MVAS) Company. OnMobile is engaged in providing value added services in telecom business globally. OnMobile offers a range of products like application based voice portals, network products, data products, speech products, messaging and m-commerce.
The products introduced by the Company during the fiscal year ended March 31, 2010 were ringback tone, subscription manager, voice portal, social address book, my social home, messaging platform, telephone, pollenStudio 2.0 and business intelligence.
OnMobile Global is the market leader in the non-SMS VAS (Value Added Services) segment in India. VAS is doing better than voice. Company enjoys a 33% market share in India. Company has managed to grow at the rate of 12-13% in a year compared to other telecom VAS providers.
In FY10, it won two major contracts from Telefonica in 13 Latin American countries and Vodafone in three countries. The upfront costs in building up operations for these projects took a toll on earnings before interest, tax, depreciation and amortisation (Ebitda) margins, which plummeted to around 18 per cent in FY10 from 32 per cent in the previous year.
Telefonica and Vodafone operations are expected to come onstream by the end of the current financial year, and should start showing results in FY12. Ebitda margins are also expected to improve by that time, but not to the earlier 30 per cent plus levels.
As stated above, project costs for Telefonica and vodafone are factored in and bad times are over in terms of profitability. These expenses had affected in terms of return ratios and right now ratios are at the bottom. If you look at the historical P/E ratio band, this company used to command very high P/E multiple in past and currently it is trading at the lower end of the band.
Market Cap 2138.82
EPS (TTM) 9.56
P/E 38.16
P/C 21.11
Book Value 123.37
Price/Book 2.96
Div(%) 0.00%
Div Yield(%) -
Market Lot 1.00
Face Value 10.00
Industry P/E 17.78
Stock price level around Rs. 320 - 340 is good to buy stocks of Onmobile. Overall, Onmobile global is a good mid cap stock to buy and one may invest in it for long term for excellent returns.
OnMobile Global Limited (OnMobile) is a global value added services (MVAS) Company. OnMobile is engaged in providing value added services in telecom business globally. OnMobile offers a range of products like application based voice portals, network products, data products, speech products, messaging and m-commerce.
The products introduced by the Company during the fiscal year ended March 31, 2010 were ringback tone, subscription manager, voice portal, social address book, my social home, messaging platform, telephone, pollenStudio 2.0 and business intelligence.
OnMobile Global is the market leader in the non-SMS VAS (Value Added Services) segment in India. VAS is doing better than voice. Company enjoys a 33% market share in India. Company has managed to grow at the rate of 12-13% in a year compared to other telecom VAS providers.
In FY10, it won two major contracts from Telefonica in 13 Latin American countries and Vodafone in three countries. The upfront costs in building up operations for these projects took a toll on earnings before interest, tax, depreciation and amortisation (Ebitda) margins, which plummeted to around 18 per cent in FY10 from 32 per cent in the previous year.
Telefonica and Vodafone operations are expected to come onstream by the end of the current financial year, and should start showing results in FY12. Ebitda margins are also expected to improve by that time, but not to the earlier 30 per cent plus levels.
As stated above, project costs for Telefonica and vodafone are factored in and bad times are over in terms of profitability. These expenses had affected in terms of return ratios and right now ratios are at the bottom. If you look at the historical P/E ratio band, this company used to command very high P/E multiple in past and currently it is trading at the lower end of the band.
Market Cap 2138.82
EPS (TTM) 9.56
P/E 38.16
P/C 21.11
Book Value 123.37
Price/Book 2.96
Div(%) 0.00%
Div Yield(%) -
Market Lot 1.00
Face Value 10.00
Industry P/E 17.78
Stock price level around Rs. 320 - 340 is good to buy stocks of Onmobile. Overall, Onmobile global is a good mid cap stock to buy and one may invest in it for long term for excellent returns.
IT Stocks could be in trouble : Ohio bans offshore IT projects by govt depts
Here is the big news for IT industry in India, and whats more, it is not good at all. Ohio state in US has completely banned outsourcing of it's state government IT projects to offshore development. How does this affects Indian IT stocks?
This could be just a beginning and more US states could follow the same in order to keep the jobs in American soil and for Americans only. Check the related news here.
Last month, the US Congress passed a controversial legislation increasing visa fees for funding the country’s Mexico Border Security program. States such as Virginia are facing a massive backlash against outsourcing that could further affect the prospects of Indian IT firms.
Checkout my earlier article "Should you buy stocks of IT companies for long term?"
Although Indian IT companies could setup American subsidiaries with American employees to fight the anti outsourcing moves, ultimately where it boils down to is the profitability from investment perspectives. IT companies setting up more and more offices in US, employing more US employees means spending in dollars and in American standards which is very high when compared to their offshore development centers in India where they pay small salaries in INR and earn in dollars keeping big profits. These high profits gave very good returns in past which could not be the case going forward in future. And so it would be difficult to find multi bagger IT stocks in future.
This could be just a beginning and more US states could follow the same in order to keep the jobs in American soil and for Americans only. Check the related news here.
Last month, the US Congress passed a controversial legislation increasing visa fees for funding the country’s Mexico Border Security program. States such as Virginia are facing a massive backlash against outsourcing that could further affect the prospects of Indian IT firms.
Checkout my earlier article "Should you buy stocks of IT companies for long term?"
Although Indian IT companies could setup American subsidiaries with American employees to fight the anti outsourcing moves, ultimately where it boils down to is the profitability from investment perspectives. IT companies setting up more and more offices in US, employing more US employees means spending in dollars and in American standards which is very high when compared to their offshore development centers in India where they pay small salaries in INR and earn in dollars keeping big profits. These high profits gave very good returns in past which could not be the case going forward in future. And so it would be difficult to find multi bagger IT stocks in future.
Stock To Buy : Empee Distillaries
This is another stock to buy discussed recently by a stock broker on Moneycontrol who also has advised to buy stocks of VLS Finance. He has discussed Empee Distillaries as value stock to buy with good potential intrinsic value. Let's see why it is a stock to buy.
Empee Distilleries Limited is engaged in the business of manufacturing of Indian made foreign liquor (IMFL) and power. The Company's business segments include Liquor(IMFL), power, sugar and industrial alcoholic plant (IAP).
It’s factories include Mevaloorkuppam Village, Sriperumpudur Taluk, Kancheepuram District, Tamil Nadu and Mevaloorkuppam Village, Sriperumpudur Taluk, Kancheepuram District, Tamil Nadu. The two factories at Mevalurkuppam and Palakkad produced 3761337 cases as of March 31, 2009.
Empee Distilleries came up with an IPO at Rs 400 in 2007. Current stock price is at RS. 167. The stock has book value of Rs. 132 which is good and near it's stock price. P/E ratio of 13.9 at current stock price is fairly lesser compared to industry standard P/E of 80. Compared to peers like United Breweries, Empee distillaries is available at cheap stock valuations.
Market Cap 318.59
EPS (TTM) 12.06
P/E 13.90
P/C 10.99
Book Value 132.77
Price/Book 1.26
Div(%) 50.00%
Div Yield(%) 2.98
Market Lot 1.00
Face Value 10.00
Industry P/E 80.86
Empee distillaries has tremendous hidden assets into the company. One of the best is the real estate part where we feel the company would be developing the real estate in the next three years. This real estate development could generate cash flows of more than the current market cap of the company. That means in the next three years the company’s cash flow from the real estate itself will be much more than the current market cap.
Empee distillaries has paid a dividend of Rs 6 this year. The dividend yield at this rate is pretty good for even dividend income along with growth opportunities.
Company also have a power generation capacity of 10 megawatts. 75% of this generated power is freely salable and only 25% needs to be transferred to Tamil Nadu government. This sale of power adds about Rs 3-4 crores of free cash flow to the bottom-line. Empee distillaries is holding 2.81 crore share of Empee Sugars and Chemicals as investment.
Considering the dominating position of company in southern markets, real estate development, small power play and intrinsic value, Empee distillaries is a stock to buy with stock price target of at least Rs. 400 levels in next 2-3 years.
Empee Distilleries Limited is engaged in the business of manufacturing of Indian made foreign liquor (IMFL) and power. The Company's business segments include Liquor(IMFL), power, sugar and industrial alcoholic plant (IAP).
It’s factories include Mevaloorkuppam Village, Sriperumpudur Taluk, Kancheepuram District, Tamil Nadu and Mevaloorkuppam Village, Sriperumpudur Taluk, Kancheepuram District, Tamil Nadu. The two factories at Mevalurkuppam and Palakkad produced 3761337 cases as of March 31, 2009.
Empee Distilleries came up with an IPO at Rs 400 in 2007. Current stock price is at RS. 167. The stock has book value of Rs. 132 which is good and near it's stock price. P/E ratio of 13.9 at current stock price is fairly lesser compared to industry standard P/E of 80. Compared to peers like United Breweries, Empee distillaries is available at cheap stock valuations.
Market Cap 318.59
EPS (TTM) 12.06
P/E 13.90
P/C 10.99
Book Value 132.77
Price/Book 1.26
Div(%) 50.00%
Div Yield(%) 2.98
Market Lot 1.00
Face Value 10.00
Industry P/E 80.86
Empee distillaries has tremendous hidden assets into the company. One of the best is the real estate part where we feel the company would be developing the real estate in the next three years. This real estate development could generate cash flows of more than the current market cap of the company. That means in the next three years the company’s cash flow from the real estate itself will be much more than the current market cap.
Empee distillaries has paid a dividend of Rs 6 this year. The dividend yield at this rate is pretty good for even dividend income along with growth opportunities.
Company also have a power generation capacity of 10 megawatts. 75% of this generated power is freely salable and only 25% needs to be transferred to Tamil Nadu government. This sale of power adds about Rs 3-4 crores of free cash flow to the bottom-line. Empee distillaries is holding 2.81 crore share of Empee Sugars and Chemicals as investment.
Considering the dominating position of company in southern markets, real estate development, small power play and intrinsic value, Empee distillaries is a stock to buy with stock price target of at least Rs. 400 levels in next 2-3 years.
VLS Finance - Is it a stock to buy ?
Recently I read a recommendation to buy stocks of VLS Finance on Moneycontrol by some stock broker. He has discussed VLS Finance as a value stock to buy with good amount of intrinsic value. Let's find out if it is a stock to buy, if yes, at what stock price.
VLS Finance Ltd. is a non banking finance company (NBFC). The Company deals/hedges/arbitrages the securities in the capital market and futures, and options securities in the derivative segment. The Company’s subsidiaries include VLS Securities Ltd., VLS Investments Ltd., VLS Asset Management Ltd. and VLS Investment Inc.
VLS Finance's present business:
* Investment and Merchant Banking activities in 100% subsidiary – VLS Securities Ltd. Registered as a Category I Merchant Banker with the Securities & Exchange Board of India (SEBI)
* Proprietary Investments and Equity Research
* Corporate Consulting & Advisory Services
* Privatization & Infrastructure Finance
* Stock Broking in 100% subsidiary – VLS Securities Ltd. Membership to the National Stock Exchange of India Ltd. (NSE)
The stock broker discussed about disputed investment of VLS Finance in Delhi metropolitan hotels. It's rough valuations are around Rs. 800 crores. VLS Finance would be holding 87% of this valuation IF court judgment favors VLS Finance.
VLS Finance and it's subsidiary holds 14% stocks in Relaxo footware. This stake comes around Rs. 60 crores.
I looked at the financial details of VLS Finance. You may check it here. Company's financial performance is not consistent at all. Variations are big in quarterly numbers. EPS for FY10 was 1.21. For FY 11, if we try to predict it based on June quarters, it would be again around 1 so nothing great in terms of earnings. The facts depending on which stock broker has recommended are: Investment of approx. 60 crores in Relaxo. Current market capital of VLS Finance is Rs. 90 crores. Book value is Rs. 48.41 .
At current stock price of 23, stock is available at good discount to it's book value. And disputed investment of VLS Finance in Delhi metropolitan hotel valued at Rs. roughly 600 crores. These facts make VLS finance a stock to buy. Total valuations for VLS could be 600+60+90 i.e. Rs. 750 crores against current market capital of Rs. 90 crores. If the disputed court case judgment favors VLS Finance, it could be valued at market cap of at least Rs. 400 crores. This leaves room for stock price to grow 4 - 5 times and makes VLS finance a stock to buy.
Not to forget though, this depends on disputed investment case which is pending in court for judgment. If stock corrects below Rs. 20 levels, one my buy stocks for long term in small quantity.
VLS Finance Ltd. is a non banking finance company (NBFC). The Company deals/hedges/arbitrages the securities in the capital market and futures, and options securities in the derivative segment. The Company’s subsidiaries include VLS Securities Ltd., VLS Investments Ltd., VLS Asset Management Ltd. and VLS Investment Inc.
VLS Finance's present business:
* Investment and Merchant Banking activities in 100% subsidiary – VLS Securities Ltd. Registered as a Category I Merchant Banker with the Securities & Exchange Board of India (SEBI)
* Proprietary Investments and Equity Research
* Corporate Consulting & Advisory Services
* Privatization & Infrastructure Finance
* Stock Broking in 100% subsidiary – VLS Securities Ltd. Membership to the National Stock Exchange of India Ltd. (NSE)
The stock broker discussed about disputed investment of VLS Finance in Delhi metropolitan hotels. It's rough valuations are around Rs. 800 crores. VLS Finance would be holding 87% of this valuation IF court judgment favors VLS Finance.
VLS Finance and it's subsidiary holds 14% stocks in Relaxo footware. This stake comes around Rs. 60 crores.
I looked at the financial details of VLS Finance. You may check it here. Company's financial performance is not consistent at all. Variations are big in quarterly numbers. EPS for FY10 was 1.21. For FY 11, if we try to predict it based on June quarters, it would be again around 1 so nothing great in terms of earnings. The facts depending on which stock broker has recommended are: Investment of approx. 60 crores in Relaxo. Current market capital of VLS Finance is Rs. 90 crores. Book value is Rs. 48.41 .
At current stock price of 23, stock is available at good discount to it's book value. And disputed investment of VLS Finance in Delhi metropolitan hotel valued at Rs. roughly 600 crores. These facts make VLS finance a stock to buy. Total valuations for VLS could be 600+60+90 i.e. Rs. 750 crores against current market capital of Rs. 90 crores. If the disputed court case judgment favors VLS Finance, it could be valued at market cap of at least Rs. 400 crores. This leaves room for stock price to grow 4 - 5 times and makes VLS finance a stock to buy.
Not to forget though, this depends on disputed investment case which is pending in court for judgment. If stock corrects below Rs. 20 levels, one my buy stocks for long term in small quantity.
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