Deep Industries
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=411
Printed Date: 25/Apr/2024 at 11:21pm
Topic: Deep Industries
Posted By: omshivaya
Subject: Deep Industries
Date Posted: 25/Sep/2006 at 1:09am
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Stock synopsis for "deep industries" required.
Their management is making big claims of 16 cr revenues in FY07 and 40 cr in FY08 and it MAY BE a real big multibagger in next 1-2 years if what they say is true,k which I am not even half way convinced of, somehow. At a 16 cr revenue in FY07 and profit of 8 cr(as per the management), the EPS would rise 4-5 times from current levels in FY07. The only problem is "I have no idea what their management is and how much of what they are saying would come true. I mean the probability of it coming true". Its IPO fared badly today after listing but their management's vision for FY07-08 is what is making me take a look. Please do a serious analysis on this one, for anyone who follows the sector. ONGC is its client for last 8-9 years and they are into gas compression.
Thanks guys! ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Replies:
Posted By: basant
Date Posted: 25/Sep/2006 at 1:15am
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Being an IPO we would have very little knowledge so a synopsis would better not be attempted. But as you say I would always believe a management for the first time. Just because the management is unknown we should not brush things under the carpet.
If you are not too sure about the thing take an initial position and wait for confirmatyion and as far as IPO having been in trouble you would recall that Infy IPO in 1993 had almost bombed off. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: reetesh
Date Posted: 25/Sep/2006 at 1:24am
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You are welcome. ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: omshivaya
Date Posted: 25/Sep/2006 at 1:49am
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Hmmm. Thanks Mr. Basant. I actually saw their track record and it has not been too good. Nice info. Reetesth, thanks. I already knew most of the info. though from the IPO and MMB website. But still thanks.
The MD of deep says that the current EPS being 6 bucks, he expects to do an EPS of 13 in FY08. The average PE for this industry is around 11. The CMP of Deep is 27.90 bucks.
Hope this helpe someone.
{{{ NO PROBLEM MATE  }}}------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |