Thursday, November 11, 2010
It is true,there may be some price manipulation immediately after the listing of BS Transcomm for giving an exit opportunity to those who bail out the public issue. Even considering this factor, I strongly feels , there is some value in it at current market price of Rs.217/- .Company has posted a turnover of Rs.342 Cr in half year and a net profit of Rs.27 Cr . On the expanded equity, it is expected to complete the FY 11 with an EPS close to Rs.25/- .It is operating in an industry with good potential and an integrated company too .Current order book position of Rs.700 + Cr giving good visibility for its business going forward. Since its IPO just completed, most of the investors are aware about the company ,so not repeating much more . I am expecting an appreciation of 50% from current level in one year time frame. CMP is Rs.217/- which is almost 15% lower than the IPO price.