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Anik Industries-Available below BV!!

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=948
Printed Date: 19/Apr/2025 at 7:17am


Topic: Anik Industries-Available below BV!!
Posted By: sakpalnitin
Subject: Anik Industries-Available below BV!!
Date 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.

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One cannot go back and change a bad beginning but can always start now and create a successful end.


Replies:
Posted By: basant
Date 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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'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: sakpalnitin
Date Posted: 07/Jun/2007 at 5:38pm
EPS is found to move up from 3.87 to 4.36

is it hold or sell ??

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One cannot go back and change a bad beginning but can always start now and create a successful end.

Posted By: basant
Date 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.

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'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: xbox
Date 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.

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Don't bet on pig after all bull & bear in circle.


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