Tuesday, February 28, 2012

GMR infra : BUY

 Hello Mahesh,
Please advice is it good hold GMR infra LTD.
I have 200 stocks at average price of 23 .. Is it good more buy more.
Thanks and Regards

1. GMR infra is a 1 rupees face value share and Punj lloyed, Larsen and toubro are 2 rupees face value share.
2.GMR infra FY 10- 11 EPS is 0.15 rupees per share ,and book value is 18.42 only, this share is currently trading on 27 so P/E on this price is 180 this means you pay next 180 year earning on current basis advance. Remember our index P/E is near about 20 so you suppose how expensive this stock in compare of index.
3. Promoters hold 71.43 percent stake in this company FII hold 11.62 percent is a good sign. and promoter increase there holding from 70 % ..this is positive point
4. Company not gives any dividend in last 5 year.
5. this year i think EPS of GMR INFRA is +0.50 so due to increasing EPS and promoter holding this time is good to accumulate this stock.
6. i have no any stock of GMR infra


  1. Maheshji,

    Thumbs Up for your good work!!

    An article of all the costs involved while buying & selling by taking an example for both categories intraday and demat holding would be beneficial for all followers.

    Mostly.. people would buy share say 2-3 quantity and Rs 100 and would sell it at Rs 103 & would consider their profit as Rs3 but in actual they have made a loss.. As minimum Rs 10 to max Rs 30 gets deducted as DP transaction charge while selling, then we have brokerages involved while buying & selling, STT taxes while buying and selling. Deducting these costs from profit would give actual profit (as we also discussed before & I completely agree with your views there). Not even actual profit is your final profit as one has to deduct the annual tax paid on that profit, internet charges, electricity charges & some impossible to calculate charges like time you spent.

    Also, then annual maintenance fees given to broker house with whom one has DP account, any kind of bank charges etc. would also be deducted from this profit.

    The final left will be the actual profit.

    Illustrating this by an example would help your follower plan their buying quantity instead of making profits which in reality is a loss.

    Just a thought from my side.



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