Thursday, March 11, 2010

WHY I BUY KAMDHENU ISPAT LTD?


Today I buy 100 shares of kamdhenu ispat ltd @19.50 and I think I told my blog reader that why I choose this share to invest my hard earn three months savings ( please do not wonder because I am a salaried employee and after all deduction or all need of my family I save 600-700 per month for invest in market so I save 2000 in three months and want to invest this saving to built my future as a Indian warren buffet) so I decide to publish complete criteria to filter this share for my portfolio because I think it may educate my blog fans or readers.
1. kamdhenu steel have a low share price of 19.50 so I easily buy 100 share in 1950 and with brokerage my investment is only 1980 and my budget is 2000 so I think this share is fit in my budget.
2. Kamdhenu steel has 10 rupees face value and as you knew that I like share with 10 rupees face value so it fulfill my first criteria.
3. Book value of kamdhenu ispat ltd is 36.16 so my buying price is just half of book value means a value buying for long term.
4. Then I check promoter holding it is 51.05 percent and I like share which promoter holding is more than 50 percent.
5. Kamdhenu ispat IPO come in 3 April 2006 and IPO price of this share is 25 so my buying price is on 26 percent discount of IPO price.
CLICK HERE TO READ IPO PROSPECTUS OF KAMDHENU ISPAT LTD
6. This share gives 0.80 paisa per share dividend in 2008 so it means it is an investor friendly company.
7. Debt equity ratio is 0.76 and I like company below 1.5 debt equity ratio.
8. In March 2009 net operating profit per share is 196.91 and free reserves per share is 25.13
9. Currently company is in loss so currant price is down due to loss in balance sheet and I think this is a well known company and these advertisement shows on TV daily in various channels so I think one day it recover it loss.
10. 52 week high of this share is 26.85 and 52 week low is 10.25
So after test this share on above criteria’s finally I decide to put my hard earn savings of rs. 2000 in kamdhenu ispat ltd.
11. When I sell this share? -
I never sell this share in my life in loss. Because I invest such a small money and able to forget this. And in profit I wait minimum April 2011 because I not want to pay 15 percent short term capital gains tax. After 1 year in April 2011 my profit on this share is TAX FREE. So after 2011 if I see a price more then 60 then I decide to book my TAX FREE PROFIT in whole holding or part profit booking as situation may allow.
12. Current price of kamdhenu ispat is 18.85 and share is continuing in down trend.

Matched Content

My Youtube Channel

Blog Archive

हिन्दी वेबपेज आफ महेश कौशिक डाट कोम

Google+ Followers