NALWA SONS:AVOID

Sir , Please your viewon future for Nalwa sons investment & JSW Holding. at the current price purchase is advisable? and current market price of their quoted investment ? ask by shr bharat shah
1. Nalwa son’s investment show as metal ferrous company in BSE website.
2. Nalwa sons touch his year high 1186.60 at 30 sept 2009.
3. Nalwa son’s promoters hold 55.61 percent stake.
4. But in promoters list I find 51 promoters name included some trading company finance company investment company holding company etc this is not a good sign and may be some operators driven activity which will trap you at high price.
5. June 09 quarter EPS of nalwa sons is 1.86 only very poor earnings compare to high price ( June 08 earnings is 14.68).
6. nalwa sons book value is 527.37 and P/E 130.11 which is very high P/E
7. I think you understand price of nalwa sons do not support his fundamentals so please AVOID investment in this company
8. CLICK HERE TO READ VIEW ON JSW HOLDINGS

THIS ANALYSIS IS MAHESH CHANDER KAUSHIK OPINION ONLY NOT A PROFESSIONAL ADVICE SO READ DISCLAIMER BEFORE TAKE ANY ACTION.
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Low equity capital cause Aban offshore price fluctuation

Mahesh Ji,
Please suggest me upon Aban offshore. I am holding 100 @ 1650 level.One of friend is suggesting it will go back to less than 1400 levels. Can I hold or exit? I can hold it for 6 months also.Thanks, Cinels.
1. Aban offshore is India largest oil drilling company in private sector.
2. Aban offshore is a 2 rupees face value share.
3. Aban offshore is a high debt company debt/equity ratio is 3.70 so this debt/equity ratio is very high this means company total debt is 3.7 time to his equity capital. This point is main negative factor of this company
4. Book value of aban offshore is 243.2 only so aban offshore current price is 6x of book value, which is very high valuation.
5. You may note one thing that year low of aban offshore is 224 below it book value and year high is 2506 ten time of his book value so what the reason of this price fluctuations?
6. I give you reason of this price fluctuation that total equity capital of aban offshore is very low only 7.6 million this means company have 3.80 million share of 2 rupees face value and 60 percent share hold by promoters so only 1.52 million share is available in open market (in ONGC after promoter holding 77 million share of ONGC available in open market).
7. As we discuss in point 5 that when a less quantity of share is available for a good company in open market than price will easily rise and down and cause huge fluctuation so current price of aban offshore is due to low equity capital and high demand.
8. I think your friend is right if movement in aban offshore is cool down than price down easily because current price is 6 times higher than book value of share.
9. However, not book your loss at once because this is a good company and due to his low equity capital price of this share is fluctuate in future also so you may hold your possition with reasonable stop loss and look a profitable exit.
10. In this sector (oil drilling and exploration) I like alpha geo (India) this company share have 10 rupees face value, book value 104.40 low equity only 5.1 million, 34.71 percent promoter holding, debt /equity ratio is 0.42, if market down I look a entry in alpha geo share @ 100-150 because I think this share may be coming aban offshore story.
THIS ANALYSIS IS MAHESH CHANDER KAUSHIK OPINION ONLY NOT A PROFESSIONAL ADVICE SO READ DISCLAIMER BEFORE TAKE ANY ACTION.
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RADHA MADHAV : MARKETPERFORMER ONLY

Hi, Could you please give your opinion on Radha Madhav Corp. Thanks
Ask by AG (question sender not disclose his full name)
1. Radha madhav ltd (RMCL) Promoters holding are 22.58 percent low promoter holding.
2. But FII hold 5.69 percent and FCB (foreign corporate bodies) hold 23.04 percent in this share s this is a foreign investor’s driven share.
3. This is a loss making company June 2009 quarter net loss of radha madhav is -94.23
4. Equity capital of radha madhav is very high 325.38 million and this mean total share of value industries is 32.538 million this huge quantity of share diluted EPS and generally when equity capital is high share rise slowly due to simple demand and supply concept.
5. Book value of RMCL is 43 high book value means a positive fundamental.
6. Overall I think if this is a low promoter holding and high equity capital scrip perform only if market rally continue. this is a loss making company and not in up trend
7. Remember in this rally good stocks turn 4-5 times from his year low but radha madhav turn only 2-2.4 time from it year low near about 8 so I think this is only market perform and not perform well in this rally

THIS ANALYSIS IS MAHESH CHANDER KAUSHIK OPINION ONLY NOT A PROFESSIONAL ADVICE SO READ DISCLAIMER BEFORE TAKE ANY ACTION.
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VALUE INDUSTRIES GOOD FOR LONG TERM BUT TRY TO CATCH BELOW 15

Hi Mahesh Ji,,I am keen follower of your blog and I really appreciate the views of your's on the stocks. I have one query,
Please can you advice me , whether the Value industries is a good pick now and if there is good growth for this stock in future
Thank you Sir,
Ask by shri Venkat ji
1. Value industries is a 10 rupees face value share traded at 19.30 near about it year high 21.20 (share touch his year high at 6 Aug 2009).
2. Value industries year low is 7.80 at 21 NOV 2008.
3. Promoters holding are 46.60 percent and they pledged his 22.31 percent holding so promoter holding is quite normal this company is promoted by dhoot group promoters of videocone industries so promoter of company is well reputed
4. In June 2009 LIC hold 852649 shares of value industries also good factors because LIC is one of largest DII in India.
5. June quarter EPS of value industries is only 0.46.
6. Equity capital of value industries is very high 392.10 million and this mean total share of value industries is 39.21 million this huge quantity of share diluted EPS and generally when equity capital is high share rise slowly due to simple demand and supply concept.
7. Value Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on July 31, 2009, inter alias, has approved forfeiture of 127,684 Equity Shares of face value of Rs 10/- in respect of which the allotment / call money were due and unpaid. It mean some investors of company do not like to pay due amount for company a negative sign.
8. Book value of this company is 113.98 very high book value means a good positive fundamental.
9. overall I will like to invest this company because of good promoters and good book value but not very positive and hurry up buying if you already hold this company then hold it for long term and if one can want to make a new investment than buy 50 percent at current price and wait for a fall and try to catch it in area of 12-15.

THIS ANALYSIS IS MAHESH CHANDER KAUSHIK OPINION ONLY NOT A PROFESSIONAL ADVICE SO READ DISCLAIMER BEFORE TAKE ANY ACTION.
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JAI MATA GLASS COMPANY END OF SPECULATION

I want to knew about jai mata glass company? Ask by shri nisu katiyar ji from mail.
1. Jai mat glass ltd is a 1 rupees face value share so his current price as well as year low 5.58 is not very low this is 5.58x of his face value.
2. Book value of this share is also -47.83 so negative book value is a big concern.
3. IDBI bank holds 22.85 percent share in this company in June 09.
4. Promoters holding are 35.36 percent is not very low.
5. Jai mata glass make is year high 22.11 at 25 Aug 09 and currently traded at 5.58 great fall with 100 percent delivery and share traded at -5 percent lower circuit limits.
6. June quarter EPS of jai mata glass is very poor only 0.07.
7. I think this is end of speculation story and share enter in a dark zone for 2-3 years so no chance to multi bagger and I found it attractive only when then it traded below his face value 1.
8. I think company is poor because you knew my investment criteria I disclose it again for you that I like share with high promoters or fund holding, 10 or 5 rupees face value, low equity capital, and traded below or near it book value, low P/E but rising EPS so this share is not fulfill my criteria

THIS ANALYSIS IS MAHESH CHANDER KAUSHIK OPINION ONLY NOT A PROFESSIONAL ADVICE SO READ DISCLAIMER BEFORE TAKE ANY ACTION.
SENT YOUR SHARE QUERY TO mckaushik00@yahoo.co.in FOR A FREE ANALYSIS ON THIS BLOG.
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