Saturday, April 2, 2011

RAMSARUP INDUSTRIES LTD @19


(This article is updated on 28.12.2012 in my sharegenius blog at following link)
1. Respected readers you note that after a long time I come back with a new penny pick of RAMSARUP INDUSTRIES LTD because I scan 100 of stocks below 20 and high book value then I choose ramsarup industries for penny pick.
2. RAMSARUP INDUSTRIES LTD is a 10 rupee face value company currently traded @19
3. Book value of RAMSARUP INDUSTRIES LTD is 162.95 so I think this is a great deal of good fundamental company like Arvind Ltd
4. I explain that why I compare ramsarup industries Ltd to Arvind Ltd, when Arvind Ltd is traded on @12 then my advice to buy it due to its high book value of 60 and now you see the result of a 2 year wait that give 500 % profit in Arvind Ltd. But be cautious because it is not sure that ramsarup industries also perform like Arvind Ltd so invest only small amounts in this type of shares.
5. There are two Reason of price fall in RAMSARUP INDUSTRIES LTD , one of his high debt near 1800 Cr But bankers are now agreeing to restructuring debt by CDR mechanism read detail about RAMSARUP INDUSTRIES LTD debt restructuring in this link
6. The second reason is diluting promoter holding , when ramswarup industries Ltd is trading at 120 in July 10 then promoter holding is 75.89 % but now promoter stake is diluted at 39.82 % but I think near 40% promoter holding is not very low
7. So I think ramsarup industries are full fill my criteria to choose it coming multibagger but it doesn't happen at once like a magic it will take time near 1-2 year and in this period we may see much lower price so I think 24 months SIP in this share may give us a decent return when ramsarup industries turn around in profit.

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