Wednesday, May 18, 2011

KIRLOSKAR INDUSTRIES LTD:NEGATIVE

Mahesh Ji, Kirloskar Industries trading at all time low. EPS for FY10-11 is 50+. Good book value. What is your opinion in buying it?
Rajeev Daniel
1. Kirloskar Industries Ltd is a 10 rupee face value machinery stock.
2. 52 week high for Kirloskar Industries Ltd is 650.75 and 52 week low is 302 and stock just traded on his 52 week low and after a long market experience I think this type of situation is not good for a healthy stock where stock fall more than 50 % from his year high there are a long sideways or sleep zone before fresh rally.
3. Although book value of this stock is 384.03 but there are many stocks in market that traded below book value for 2-3 years long time so if I recommended this stock only on book value base then it is not fair.
4. EPS of 2010-11 is 57 but see March 2011 EPS which is 2.90 only so I think this year EPS for this company will be negative or very low.
5. Promoters holding in Kirloskar Industries Ltd 64.10 % FII holding 15.42 % is good point.
6. Kirloskar Industries Ltd has recommended a Dividend of Rs. 2.50 (25%) per equity share of Rs. 10/- each for the financial year 2010-11, and ex dividend date for this stock is 13 July 2011
7. This stock see heavy bulk deals before his fall so this is another negative point click here to see data for bulk deals
8. So my view is negative for Kirloskar Industries Ltd and I have no any share of Kirloskar Industries Ltd

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