Monday, August 31, 2009

AVOID:XL telecom and energy ltd.


dear sir,please tell me about xl telecom&energy i have 100 shares @ 350 Rs but right now its price is 58 rs kindly advice me what should i do can i average in this stock? ask by respected visitor mohsin memon ji by mail


1.XL telecom and energy ltd have a low promoters holding 26.70 percent and 45 percent of this holding is pledged so this is not a good fundamental.
2.XL telecom and energy ltd have a net loss 2372 cr at June quarter so this is a huge loss making company.
3.This share traded at 56.05 only on speculative reasons as you see fundamental not support this price.
4
.EPS of this stock is -123.41 (please attention on – minus sign) as per moneycontrole site but you see June 09 result at BSE site you find equity capital of this company is 187.85 and net loss is -2372.06 so exact EPS is-2372.06/18.785=-126.27 so -126.27 is right EPS of XL telecom ltd as per BSE site which is authentic site of Indian share market.
5. book value of xl telecom is 28.07 only.
6. debt/equity ratio is 1.32 in xl telecome.
7.We think this is better that you avoid this share. and do not avarage out it at current price, it is wise to avarage out it near it book value at 30 if come

THIS ANALYSIS IS MAHESH CHANDER KAUSHIK OPINION ONLY NOT A PROFESSIONAL ADVICE SO READ DISCLAIMER BEFORE TAKE ANY ACTION.
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