Keep patience. It is now resting on its support level. Any day it may give you bumper gains by jumping 20% and 15% for consecutive two days. This is a very old company like L&T and Tata Steel. The old name was `VAM ORGANIC`. Its promoters are highly reputed businessman, known by the whole world and not like that `hopeless Raju Baju`. Have little patience.
i know about the sound fundamentals of the company. i also know about the respectable position its promoter holds in CII. during my productive days i used to invest in fixed deposit schemes of vam organic. however i have strong objection to this scrip rotting at its support level for months together when the whole sector is in upmove. as per latest karvy report about 20% equity is with retail investors. they will definitely become restive in such a long period. if they are waiting to first hive off ipp business to reduce debt & then worry about share price then they are taking too long. there are so many positives about the company-CRAMS business is looking up & has a great future ahead, dollar weakening makes servicing of debt a bit easy, their recent expansions will start contributing , prevailing p/bv as well as p/eps of the sector is going up- all these factors warrant a higher cmp for this scrip. i compared it with satyam because that scrip gave its investors a lot of tension& the same should not happen here.the promoters ought to prove themselves more investor friendly.
are there no willing buyers for this share? otherwise why should, perhaps, one fellow give a target of more than 350 & another show dreams of it going up by 35% in two days. last few weeks trading & price pattern also shows distribution is taking place . is it really a lame horse which should better be shot?
When everything is right and the price is not moving, the scrip gives a golden opportunity to a long term investor.
So, I am accumulating this scrip from last one and a half month from Rs.168/- to 215/-. I think buying at this level will pay me a huge profit within next three months, keeping me away from tensions.
They have invested infrastructure through a little more debt which will take a little time to ease off the balance sheet... The scrip is being accumulated for 2012 and beyond by smarts, when lot of drugs will go off patent and Jubilant, Orchid, Dishman, Hikal etc. will have opportunity. In the short term, however, they will probably underperform as dollar weakens...
who would invest to-day for 2012? between to-day & then mkt. would give scores of oppurtunities. all export oriented units & IT sector face problems due to weak dollar. infact jubilant because of fccb loan has some advantages but no other scrip is rotting for more than 2months except this. it may not be a bad idea to dump it.
Present debt/equity is well maintained at 2:1. A repayment of $70 mn fccb comes in 2010. Hence the funds which they are planning to raise may be for the same. i am expecting 24 rs EPS for this year and a price of 500 for jubi.
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