10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Sunday, June 1, 2008

Aishwarya Telecom:-Dont deserve a price of 136rs

Scripscan:Aishwarya Telecom

[Aishwarya Telecom news,views and analysis/why to avoid/valuations expensive/works in little margin/target price/stay away and avoid/Single client dependency/Future prospects/much better bets available]

Aishwarya Telecom recently tapped the market and went on to high a of 136rs within few days of its listing.Its presently quoting at 100 rs,so is it worth an investment at present level?Read on.

Aishwarya Telecom is a ISO 9001:2000 Certified company manufacturing Mobile and Broadband Tester.

1)Basically the company has more of trading business.It imports the products from overseas players and the sells the same to its clients.The company has been in the sector for over a decade now but hasnt found the road easy to grow despite the massive demand for the sector.

2)The company gets majority of its revenue from the psu giant BSNL.Though it has been able to offer its product to other non psu companies but these are in very nascent stage.Aishwarya is relatively a small player with revenues of 30crs expected in the present fiscal 08.The company faces stiff competition from market leaders like Agilent Technologies,Rohde & Schwarz etc.It would be prudent to note that these companies have got a long decent relationship with most of the operators,so aishwarya with its small scale would find it tough to come superior to these companies and bag major orders.Also if those companies comes in india to to do business aishwarya may just find it too tough to survive.Looking at the sectorial boom and low cost nature of our country that remains a huge possibility.

3)At present prices of 100 odd its quoting at a PE multiple of 24 its expected 08 earnings.It can be compared with listed player like aplab which trades at a multiple of just 8.Further aplab is a 120crs turnover company with long existence.There are many more players available at a PE multiple of about 6-8 which are the manufacturer and having better pedigrees.Still those companies are struggling to attract better valuations.

4)Its of anyone"s guess that some operators build positions in the company, result being the high of 136rs after listing.Present huge volumes and flip in the price suggest that they are in a hurry to exit the counter.So if you have a position in the scrip better exit or else chances remains another junk stock may spoil your portfolio for a long period of time.

I can be reached

No comments:

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner