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

Tuesday, January 19, 2010

Goodluck Steel Tubes Ltd:Buy/sell/hold,growth prospects and recomendation,news and results,target price and analysis,views and outlook

Scripscan:Goodluck Steel Tubes Ltd
Code: 530655

Story:Indian Equity Market is overflowing with largely illiterate operators who, however, find clients and get big business in the form of greedy promoters. Knowing that there are millions of gullible investors, many promoters collude with operators to rig up the share price. Such operators create fake volumes through circular trading. Promoters also take help of some brokers who are ready to bring out detailed Buy report `for a price`. Such Buy reports are also uploaded on some websites (belonging to operators) which are accessible free of cost.We feel that GSTL is fundamentally overpriced. There are operators who are offering 15-20% kickback to arrange buyers at this counter. Moreover, share price pattern also indicates that scrip can fall sharply in coming months.GSTL is engaged in the production of galvanized and cold rolled sheets and coils, pipes and tubes, hollow sections etc. This Industry is a low technology industry, dominated by unorganized sector. Moreover, raw material cost alone accounts for 80-85% of sale value and hence fortunes of this industry depend on raw material price movements. Due to these shortcomings, this industry always have low valuation.Performance of 09-10 should be lower than 08-09. Projections of 25crs PAT given by some analysts are completely off the mark, exaggerated and unrealistic with intention of misleading the investors. As per our sources, operators have already started selling their holdings and share price appears for a steep fall. Hence, investors are advised to stay away from this scrip and those who are holding this scrip should benefit by selling itimmediately.Companies like GSTL deserve P.E. Ratio of 4-5 in current market condition. Hence, fundamentally fair share price should be Rs. 20-25.


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