What is your view about REI Agro ?
Will the price come down?
What is the future of this stock?
What is the price do u recommend for buying for long term investment?
Awaiting your valuable reply. ASK BY SHRI AGNI PRUTHVI JI
1. REI agro is a 1 rupees face value share so currant market price 27 is not cheap if we compare it 10 rupees face value then it is 270.
2. REI Agro Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 26, 2010, inner alias, has:
a. Decided that Company will offer 2 (Two) Equity Shares of face value of Re. 1/- each for 1 (One) Equity Share to the eligible Shareholders as on the record date at a price of 19.50 per equity share including premium of Rs. 18.50 per Share.
b. Recommended a final dividend of Rs. 0.20 per Equity Share (i.e. 20%) of Re. 1/- each for the financial year ended March 31, 2010, subject to approval of the members of the Company in Annual General Meeting.
c. Recommended dividend of Rs. 4/- each (i.e. 4%) on the preference Shares having face value of Rs. 100 each.
3. record date for right issue is 8 June 2010 so I think after this record date share may be enter in down trend and show price below right issue ( in my experience of market I think this is happen in 75 % case of right issue ).
4. So it is wise to buy it 17-19 prices if available.
5. Promoter holding is 37.89 percent in REI agro and FII hold 23.64 percent.
6. Price of 25.10 is a strong resistance for this share so watch this price if 25.10 broken than it will touch 17-19.
7. REI agro have basmati rice business so I think sector is not very hot.
8. Book value of this share is 20.54 so in book value term tries to buy it below book value .
9. P/E of this share is 16 this is also I high book value in terms of rice company. Overall my view is not so positive to buy this share but I suggest you buying range if you are so fancy on this stock.