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Message Icon Topic: Anik Industries-Available below BV!! Post Reply Post New Topic
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sakpalnitin
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Quote sakpalnitin Replybullet Topic: Anik Industries-Available below BV!!
    Posted: 07/Jun/2007 at 5:08pm
Basantji,

i hold 5000 shares of Anik Industries at 28/- it had reached 40/- twice but during market correction came down to 28 - 29 /- levels again.

Its parameters are as below.

Mkt Cap 77.70 Crores
P/E 6.41
EPS (TTM) 4.37
Book Value : 73.02

why this stock is trading at such a discount to the Book Value     ?????

should i hold or sell ???

i can wait for 1 year more.
One cannot go back and change a bad beginning but can always start now and create a successful end.
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basant
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Quote basant Replybullet Posted: 07/Jun/2007 at 5:33pm
the ROE is less then 8% that means the company is destroying value to the maximum because banks offer a 10% return on investment also if you look at their past financial statements there has been a sudden drop in the sales. I amn nnot sure why this happened has it hived off some of its divisions?
 
Now if you look at the balance sheet the company has repaid off its unsecured loan and increased its secured loan maybe that was done to save on interest cost but it does pay a 11% dividend.
 
DId it go into any sort of restructuring of late?
 
 
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sakpalnitin
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Quote sakpalnitin Replybullet Posted: 07/Jun/2007 at 5:38pm
EPS is found to move up from 3.87 to 4.36

is it hold or sell ??
One cannot go back and change a bad beginning but can always start now and create a successful end.
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basant
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Quote basant Replybullet Posted: 07/Jun/2007 at 5:47pm
Normally I do not companies that show little or no growth but let me add a caveat that you should not go by a 5 minute analysis from me.Let us see if someone else on this forum has anything on this company.
'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
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xbox
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Quote xbox Replybullet Posted: 07/Jun/2007 at 5:40am
1 year ago this was in my core radar. This company represents value but story stops here only.
Don't bet on pig after all bull & bear in circle.
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