Deccan Gold Mines: Clear Avoid

Dear Maheshji, I am a frequent reader of your blog. I would need your opinion on Deccan Gold Mines. Kindly let me know if it is a good stock for long term Warm Regards, Prasheed P Hegde.

1. Deccan Gold Mines is a 1 rupee face value Non ferrous metal company.

2. Year high of Deccan Gold Mines is 71.37 year low was 21.19 and stock traded at 31.65, Year high/ low ratio is  above 2 so as per my rule this stock is not stable for fresh buy.,  If you are new reader of my blog and not familiar with my research terms then please see my research terms at this link

Research Terms of Mahesh Kaushik

3. Promoters of Deccan Gold Mines hold 29.26% % FII hold 6.99 % ,  See full list of public shareholding including FII and DII here:-

FII DII and Public holding of Deccan gold mine

Promoters reduce their holding from 41.27% so I can not understand why people wish to buy this type of stock where promoters holding is reducing?.

4.Deccan Gold Mines pay nil dividend because company has no any income.

5. Base price of Deccan Gold Mines is 28.32 So CMP is  10 % up from base price if you read my book or above research terms then you understand that I like to buy 15% below from base price.

Click here to download last 3 year closing price with graph

6. No any bonus issue right issue and bulk deals is recorded  in last 2 year.Company give right issue on sept 2015. 

7. Deccan Gold Mines net sale per share of FY 14-15 is 0.

8. This stock have no any revenue and no any operational income only loss is there. What you think? Can it is wise to buy this type or zero revenue zero operational income stock?

9. Book value of Deccan Gold Mines is 5.33 So in book value term Price of deccan gold mine is much higher then book value.

8. Overall I think very poor fundamentals no sales, reducing promoters holding, low book value suggest that this stock is an avoid  .

9. 200 DMA of Deccan Gold Mines is 35.35 So at CMP 31.65 This stock is traded below his 200 DMA so deccan gold mine is technically weak and not recommended for buy.

10. My recent updates :- Jindal Drilling Ltd.

My Earlier views link of Deccan gold mine:-

http://sharegenius.maheshkaushik.com/2009/12/deccan-gold-mines-ltd-price-for-future.html
and
http://sharegenius.maheshkaushik.com/2012/10/deccan-gold-mines-india-bulls-power-and_11.html

11. Disclaimer:- This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please  read full disclaimer at the bottom of my blog.

12.Discloser:- I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives have not hold any share of Deccan Gold Mines so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( Deccan Gold Mines). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not  received any type of compensation from the subject company(Deccan Gold Mines) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( Deccan Gold Mines). 6. I have been not engaged in market making activity for the subject company (Deccan Gold Mines).