GMR Ferro Alloys and Industries

Buy or not...!

Posted by : Sriman35
Price when posted : BSE: Rs 46.70 ( 3.43 % ), NSE: Rs. 43.50 ( -4.40 % )

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Hi Shock!,

I arrived at a p/e of 21 based on eps reported by rediff. Rediff says Q1 eps is 0.24. (0.24 * 4 = 0.96 Yesterday close 20.7/0.96=21.56)
Checked bse website and in ispat's website. It is 0.08. Now it is obvious that rediff reported it wrongly.

I like to ckech in rediff coz of its speed in provide the basic info.. all in 1 page.. more user friendly. But have to say they are bit erratic in presenting the stats.

As for Sesa, yes you are true. Q1 eps will be about 8 with the bonus issue. Since record date is over i assumed that their financial results will be based on enhanced equity. But it is not. Checked all major web sites. All are reporting the equity around 39Cr.
With the enahnce equity.. eps work out to 3.23 on today's closing price.

Sesa operates in India and proven here (in Indian bourses
) where as GMR ferro is just one the many companies acquired by Cronimet. Yet to see the Blue print from Cronimet w.r.t gmr ferro.

*Quote*
Yes, if it comes to 30 levels, I`ll be the big bull buying :-)
*Unquote*
Free float is very low. Hope you will give us a chance to other souls, like me, to enter into the script. ;)

Regards,
Sri...

In reply to:

Buy or not...!

Posted by : ShockMarket

Hi Sri,

Ispat\\`s Q1 FY09 earnings = Rs 0.08 (from BSE website)
Annualized EPS = Rs 0.32.

At market price of 23, the P/E would be 23/0.32 = 71. How did you arrive at 21 P/E for Ispat?

I can\\`t comment on the long term chrome rate as it is nothing more than speculation. I can only be conservative to some extent but I can\\`t be pessimist :-)

Sesa goa: I am not tracking it closely. I guess you are missing the bonus shares that were issued in addition to the stock split. In essence, there are 20 shares now for each share in the market when compared to Q1 FY09. In other words, the EPS is about Rs 32 and not Rs 60 making it a P/E of 5! To simplify, look at the stock price and EPS before the split/bonus. It was trading between Rs 3000 to Rs 4000 with an EPS of Rs 160 for Q1 FY09.

If Sesa goa can enjoy a P/E of 5, then why can\\`t Cronimet? If you look at Cronimet\\`s growth, it has been very consistent. Their strategy is to take small stakes while expanding business and increase their stake as the business gains roots. You can look at the history pdf on their site to understand that.

Overall, in 10 year\\`s time, I see a great potential in GMR Ferro given the positives that I and Shoa already mentioned before.

Yes, if it comes to 30 levels, I\\`ll be the big bull buying :-)

FYI, these days I am reading \\`The Intelligent Investor\\` by Benjamin Graham (Warren\\`s Guru) to kill boredom ;-)

Shock!

Buy or not...!

Posted by : ShockMarket
Price when posted : BSE: Rs 45.15 ( -2.27 % ), NSE: Rs. 45.50 ( -0.55 % )

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Hi Sri,

Ispat\\`s Q1 FY09 earnings = Rs 0.08 (from BSE website)
Annualized EPS = Rs 0.32.

At market price of 23, the P/E would be 23/0.32 = 71. How did you arrive at 21 P/E for Ispat?

I can\\`t comment on the long term chrome rate as it is nothing more than speculation. I can only be conservative to some extent but I can\\`t be pessimist :-)

Sesa goa: I am not tracking it closely. I guess you are missing the bonus shares that were issued in addition to the stock split. In essence, there are 20 shares now for each share in the market when compared to Q1 FY09. In other words, the EPS is about Rs 32 and not Rs 60 making it a P/E of 5! To simplify, look at the stock price and EPS before the split/bonus. It was trading between Rs 3000 to Rs 4000 with an EPS of Rs 160 for Q1 FY09.

If Sesa goa can enjoy a P/E of 5, then why can\\`t Cronimet? If you look at Cronimet\\`s growth, it has been very consistent. Their strategy is to take small stakes while expanding business and increase their stake as the business gains roots. You can look at the history pdf on their site to understand that.

Overall, in 10 year\\`s time, I see a great potential in GMR Ferro given the positives that I and Shoa already mentioned before.

Yes, if it comes to 30 levels, I\\`ll be the big bull buying :-)

FYI, these days I am reading \\`The Intelligent Investor\\` by Benjamin Graham (Warren\\`s Guru) to kill boredom ;-)

Shock!...

In reply to:

Buy or not...!

Posted by : Sriman35

Hi Shock!,

Sorry for the late reply as I am occupied with something else.
GMR ferro is not part of my Portfolio. May that could be another reason for the delayed reply. Anyways coming to the point...

Thanks for the detailed reply with all the calculations.

Difference between Ispat and GMR Ferro:
aware of this, but again thanks for explaining in simple terms. bty, p/e on forward annualised Q1 eps is around 21, not 71.

Chrome rate at 1.5 USD / lbs (while it is at 1.8?):
I dont think the rate of USD 1.5/lb is sustainable for next year.

p/e of 10:
You are very generous. Counters like Sesagoa are not commanding a p/e of more than 2. (Q1 eps is 16.38, annualised eps 60 vs CMP of Rs.112)

News/Message in their website is not much a trigger point for me.

Price came down to 45 levels since my last visit to this board. Will wait for sub 35 levels or till the AGM and/or any + ve and public announcements.

Regards,
Sri

Buy or not...!

Posted by : Sriman35
Price when posted : BSE: Rs 45.15 ( -2.27 % ), NSE: Rs. 45.50 ( -0.55 % )

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Hi Shock!,

Sorry for the late reply as I am occupied with something else.
GMR ferro is not part of my Portfolio. May that could be another reason for the delayed reply. Anyways coming to the point...

Thanks for the detailed reply with all the calculations.

Difference between Ispat and GMR Ferro:
aware of this, but again thanks for explaining in simple terms. bty, p/e on forward annualised Q1 eps is around 21, not 71.

Chrome rate at 1.5 USD / lbs (while it is at 1.8?):
I dont think the rate of USD 1.5/lb is sustainable for next year.

p/e of 10:
You are very generous. Counters like Sesagoa are not commanding a p/e of more than 2. (Q1 eps is 16.38, annualised eps 60 vs CMP of Rs.112)

News/Message in their website is not much a trigger point for me.

Price came down to 45 levels since my last visit to this board. Will wait for sub 35 levels or till the AGM and/or any + ve and public announcements.

Regards,
Sri
...

In reply to:

Buy or not...!

Posted by : Sriman35

Hi Shock!,

Sorry for the late reply as I am occupied with something else.
GMR ferro is not part of my Portfolio. May that could be another reason for the delayed reply. Anyways coming to the point...

Thanks for the detailed reply with all the calculations.

Difference between Ispat and GMR Ferro:
aware of this, but again thanks for explaining in simple terms. bty, p/e on forward annualised Q1 eps is around 21, not 71.

Chrome rate at 1.5 USD / lbs (while it is at 1.8?):
I dont think the rate of USD 1.5/lb is sustainable for next year.

p/e of 10:
You are very generous. Counters like Sesagoa are not commanding a p/e of more than 2. (Q1 eps is 16.38, annualised eps 60 vs CMP of Rs.112)

News/Message in their website is not much a trigger point for me.

Price came down to 45 levels since my last visit to this board. Will wait for sub 35 levels or till the AGM and/or any + ve and public announcements.

Regards,
Sri

Buy or not...!

Posted by : shoa2546
Price when posted : BSE: Rs 45.15 ( -2.27 % ), NSE: Rs. 45.50 ( -0.55 % )

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I think it may hit 5 to 6 rs. Rgds...

In reply to:

Buy or not...!

Posted by : mukut

This is heading todward Rs26.

Buy or not...!

Posted by : mukut
Price when posted : BSE: Rs 44.00 ( -4.76 % ), NSE: Rs. 42.50 ( -7.10 % )

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This is heading todward Rs26....

In reply to:

Buy or not...!

Posted by : mukut

This is heading todward Rs26.

NSE Announcements on MVL

Posted by : MMB Messenger
Price when posted : [MVL - BSE:Rs. NSE:Rs. 82.10 when posted]

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Mvl Limited has informed the Exchange that the auditors have conducted the limited review of the Unaudited financial results for the quarter ended June 30, 2008. A copy of the same shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements)....