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Prakash.Hegde
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Joined: 31/Dec/2009
Location: India
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Posts: 17
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   Posted: 02/Jan/2010 at 1:32pm |
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I think it is a steady compound-er.
With both RoE & RoCE >20% for last 5 years, and assuming that the trend continues, it should quote at least at Book value, which is Rs. 103 as on March 2009.
So fair value should be >103.
Edited by Prakash.Hegde - 02/Jan/2010 at 1:47pm
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-Prakash
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hit2710
Senior Member
Joined: 15/Jun/2009
Location: India
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Posts: 4013
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Posted: 02/Jan/2010 at 5:37pm |
Originally posted by Prakash.Hegde
I think it is a steady compound-er.With both RoE & RoCE >20% for last 5 years, and assuming that the trend continues, it should quote at least at Book value, which is Rs. 103 as on March 2009. So fair value should be >103. |
It is a steady stock which is as mentioned earlier a market performer. But when we look for outperformers, this one according to me does not qualify to be held for too long.
It is a cheap stock and might continue to remain so.
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Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.
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PKB2000
Senior Member
Joined: 11/Aug/2006
Location: India
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Posts: 1453
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Posted: 14/Jan/2010 at 11:43am |
Originally posted by hit2710
Originally posted by Prakash.Hegde
I think it is a steady compound-er.With both RoE & RoCE >20% for last 5 years, and assuming that the trend continues, it should quote at least at Book value, which is Rs. 103 as on March 2009. So fair value should be >103. |
It is a steady stock which is as mentioned earlier a market performer. But when we look for outperformers, this one according to me does not qualify to be held for too long.
It is a cheap stock and might continue to remain so. |
Book value is above 100, current PE is 4.16, Share price over the years indicates that the stock has the potential to get a valuation of 5.5 to 6.6 (on average). The year 2009 has been found to be a good year for the chemicals manufacturers. Many fund houses / organisations have bought stake in different chemical- companies. Progressively there are inclination towards giving better value to steady performer. It has scope to increase in stock prices also fom here.
I have bought this stock!
Edited by PKB2000 - 14/Jan/2010 at 11:44am
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I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso
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PKB2000
Senior Member
Joined: 11/Aug/2006
Location: India
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Posts: 1453
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Posted: 20/Jan/2010 at 8:55am |
Originally posted by PKB2000
Originally posted by hit2710
Originally posted by Prakash.Hegde
I think it is a steady compound-er.With both RoE & RoCE >20% for last 5 years, and assuming that the trend continues, it should quote at least at Book value, which is Rs. 103 as on March 2009. So fair value should be >103. |
It is a steady stock which is as mentioned earlier a market performer. But when we look for outperformers, this one according to me does not qualify to be held for too long.
It is a cheap stock and might continue to remain so. |
I have bought this stock! |
And I sold the stock in loss
Moral: Cheap stocks may be available in cheaper and cheaper price with time!
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I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso
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Vivek Sukhani
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Joined: 23/Jul/2006
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Posts: 6675
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Posted: 21/Jan/2010 at 5:09pm |
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The results are simply horrible. In periods when companies are falling over one another to report bigger and bigger numbers, this company has produced a shocker.
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Jai Guru!!!
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PKB2000
Senior Member
Joined: 11/Aug/2006
Location: India
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Posts: 1453
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Posted: 21/Jan/2010 at 5:22pm |
Originally posted by Vivek Sukhani
The results are simply horrible. In periods when companies are falling over one another to report bigger and bigger numbers, this company has produced a shocker. |
Can you guess where did they loose the business- a speculative guess- and I did not speculate that before buying that stock!
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I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
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Posts: 6675
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Posted: 21/Jan/2010 at 5:27pm |
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Chlor Alkali business is not doing well.....and thats because aluminium has not yet started to do good. And its funny, that Hindalco has rum up almost 5 times its lows.
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Jai Guru!!!
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PKB2000
Senior Member
Joined: 11/Aug/2006
Location: India
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Posted: 21/Jan/2010 at 5:29pm |
Originally posted by Vivek Sukhani
Chlor Alkali business is not doing well.....and thats because aluminium has not yet started to do good. And its funny, that Hindalco has rum up almost 5 times its lows. |
Question remains were they able to retain their old business share!
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I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso
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