Monday, March 29, 2010

GRABAL ALOK IMPEX LTD: HIGH DEBT COMPANY WITH FII NAGATIVE VIEW

Dear Kaushik ji'
Really i was very much fascinated when i was reading ur recommendations about the stocks and various ways through which u analyz them. i would like ur comments about one stock GRABAL ALOK IMPEX LTD. which despite good promoter holding
and fii 's holding and very few public holding and with good financials is not performing in the market.
I will appreciate if ur goodself kindly spare out some time and analyse about poor performance of this stock.

Ask by shri N.Aggarwal C.A. from dehli

1. GRABAL ALOK IMPEX LTD. is a 10 rupees face value share of textiles industries in BSE group B.I like 10 rupees face value share due to future chance of stock spilt and I think 10 rupess is a fair face value to estimate stock valuation.
2. 52 week high of GRABAL ALOK IMPEX LTD. is 85.60 and 42.05 is 52 week low.share traded near about it 52 week low
3. book value of GRABAL ALOK IMPEX LTD. is 54.93 book value of share is higher than it market price so this is a value buying for long term.
4. Promoter holding is 44.68 and FII holding 4.62 percent. promoter holding is also normal
5. EPS of GRABAL ALOK IMPEX LTD. is 6.47 so current P/E is 7.55. Good EPS and low PE also show fundamentally sound position of share
6.now I told you reason that why this share is traded near it 52 week low when all other fundamental is good HSBC BANK (MAURITIUS) LIMITED is a big FII and big shareholder of this company and it sell 325000 share of this company @60 at 29.01.2010 and also sell 171063 share at 1.02.2010 in price of 60 so market price of this share fall due to low demand and heavy supply from HSBC BANK (MAURITIUS) LIMITED.
7. 2nd strong bad fundamental is debt/equity ratio of this company. Debt/equity ratio is 3.11 so it is very high debt company and I am not like company with more than 1.5 debt/equity ratio. and due to high debt this company converted FCCBs into equity, the paid up equity share capital of the Company has increased from 2,18,35,000 equity shares of the face value of Rs. 10/- each to 2,24,85,000 equity shares of the face value of Rs. 10/- each.So overall I not like this company due to high debt and FII nagative view. and equity dilution due to FCCB conversion..

8. I have no any share of this company.
Key words:_ GRABAL ALOK IMPEX LTD buy sell hold recomandations free penny stocks multibagger stock free

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