Markets
BSE See NSE See 39,599.19
164.25 (0.42%)
collapse Related Readings collapse

Your Stock Queries

| 7/12/2012 9:00 PM Thursday

DSIJ equity research experts add value to subscriber's stock portfolio by giving unbiased advice. Ask about your portfolio problem and get your stock queries answered.

SURYACHAKRA POWER CORPORATION

Q: I am holding 7050 shares of Suryachakra Power Corporation bought at Rs 3.75 per share. Should I hold the stock or sell it off?

- Pankaj Sahu, Via Email

A: Suryachakra Power Corporation (SPCL), BSE Code 532874, with a face value of Rs 10, is currently trading at Rs 1.50, which is at a 60 per cent discount to your acquisition cost. Its 52-week high/low stand at Rs 14 and Re 1 respectively.

SPCL, together with its subsidiaries, engages in the generation and sale of electricity in India. The company owns and operates two biomass-based power plants at Champa-Janjgir and Raipur in Chhattisgarh. It is also developing two more biomass-based power projects of 10 MW each at Amravati and Hingoli in Maharashtra.

On the financial front, the company’s performance has not been very impressive. The topline witnessed a growth of merely 7.10 per cent for FY12, and stood at Rs 153.66 crore as against Rs 143.48 crore for FY11. For the first time in the last six years, the company has reported a loss of Rs 3.48 crore for FY12 as against a profit of Rs 4.04 crore for FY11. This was primarily on account of the higher interest cost, which went up by 56 per cent on a YoY basis for FY12. The operating and the net profit margins have witnessed a drop by 10 basis points and 497 basis points respectively.

At present, we suggest that you exit the stock even if you have to book losses.

ALLCARGO LOGISTICS

Q: I am holding 500 shares of Allcargo Logistics purchased at an average price of Rs 110 per share. Please guide me as to what I should do with this stock.

- Subhashis Saha, Via Email

A: Allcargo Logistics, BSE/NSE Code 532749/ALLCARGO, with a face value of Rs 2, is currently trading at Rs 130.25, which is at an 18 per cent premium to your cost of acquisition. Its 52-week high/low stand at Rs 176 and Rs 108 respectively.

Allcargo provides logistics services globally. The company offers specialised logistics services across multimodal transport operations, container freight station operations and project & engineering solutions. It currently operates out of its 140 offices in 62 countries, and is supported by an even larger network of franchisee offices across the world.

It has posted its 15-month results as of March 2012, which is not comparable with its corresponding period performance. For a more meaningful comparison, we have considered its performance for CY11. The topline witnessed a growth of 18.70 per cent for CY11 to touch Rs 3396.30 crore. It reported a profit of Rs 222.87 crore in CY11 as against Rs 165.92 crore for CY10, witnessing a growth of 34.32 per cent. The stock discounts its trailing 12-month earnings by 7.67x and its EV/EBITDA stands at 6.50x. The debt-to-equity ratio stands at a mere 0.34x, which is a positive sign. It also has an impressive dividend yield of 2.32 per cent.

At present, we suggest that you hold on to the stock from a longer-term perspective if you are not in a hurry to sell it off.

 

Find More Articles on: Stock Recommendations, Fundamental Picks, DSIJ Magazine, Portfolio Guide, Product, Large Cap

«« First « Previous |1 2 | Last ››
news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

DSIJ Mindshare

Ducon Infra partners with Sterling & Wilson to bid for large GFD projects

Apurva Joshi / Article rating: 5.0

Ducon Infratechnologies Limited has entered into a strategic tie-up with Sterling & Wilson Private Limited, a flagship group company of Shapoorji Pallonji Group, to jointly bid large-sized FGD tenders. Ducon is an emerging technology company providing solutions in the industrial, infrastructure and digital space to multiple business segments across varied industries.

12345678910Last

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Logistics sector will play a vital role in making the concept of ‘Make in India’ a success. This will be further aided by some of the recent steps taken by Government of India such as granting of infra sector status to logistics sector.

Best and worst Performing Sector Funds of Year 2017

Best and worst Performing Sector Funds of Year 2017

As the year-end has approached most of you are eager to know the mutual fund movers and shakers of the year 2017. Read on to find the performance of various sector dedicated funds.

Markets may start positive, but volatility likely due to F&O expiry

Markets may start positive, but volatility likely due to F&O expiry

The start of the F&O expiry day is likely to be in the green, but volatility may creep in with the progress of the session. The SGX Nifty suggests that the Nifty could open at 10,525 with gains of 32 points at the opening bell. 

Pidilite announces buyback of Rs 500 crore

Pidilite announces buyback of Rs 500 crore

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company.

Bank Nifty drags markets to close in the red

Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733.

Six major underperforming MF schemes having higher expense ratios

Six major underperforming MF schemes having higher expense ratios

Mutual funds with a large size of assets under management (AUMs) are supposed to have lower expense ratios. However, there are schemes with large AUMs but having higher expense ratios and generating lower returns. 

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma index has come in as the healer in an otherwise sluggish market. Index has given a consolidation breakout at the 9420 level today and if the it sustains 9420, followed by 9628 on the upside, it has a long way to go.

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.35 p.m. on December 27.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 27 opened gap down. BSE Sensex is trading at 34,068.15, up by 57.54 points and the Nifty is trading at 10,539.45, up by 7.95 points.

Five stocks with selling interest

Five stocks with selling interest

Overall volumes in futures & options currently stand at 62.75 lakh contracts with a turnover of Rs. 5,19,204.72 crore.