Dear Hello Sir ,I have a query on EIL (Engineers India LTD) from long term perspective is this stock good enough could we see this stock at 1000 plus level in a period of two to three years .There is a news of Engineers India $270 mn FPO likely in June could u give ur view on this stock. Are the current level good enough to enter or should we wait for some downside .
Regards
Deepak
1.Please remember after a FPO total number of stocks are diluted so generally we see a downtrend after FPO.
2. EIL is establish in 1965 and have sound fundamental with great profit margins (more than 30 percent)
3. Promoter holds 90.40 percent stake in EIL so no doubt this is good promoter holding.but after FPO promoter holding is reduce.
4.EIL give bonus and spilt his share so it is also dilute equity and plan to FPO of $270 mn is dilue equity and EPS more and more. for more deep understanding of this concept read my book " The Winning theory in stock market" book is available in all leading online store like amazon and bookadda.
5. so my view is now great nagative for EIL and i think after FPO this share is cool down and enter in downtrand like punj lloyed.
Update 2013:- Now market prove my theory after FPO EIL down more then 90 %
Let us wait it to reach below 275,Cant we?
ReplyDeleteSURE
ReplyDeleteI have EIL 25shares, shall i sell EIL at current level before going further down
ReplyDeleteno kartik it is not a good policy because EIL is not a bad company and not sure about downfall so if you already hold just wait or add if share fall 30 percent from your buying
ReplyDeletetoday is the last day to apply for EIL FPO, do you suggest to apply ?
ReplyDelete