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Wednesday, January 3, 2007

Current Picks: Gupta Synthetics (bse)

Gupta Synthetics is a textile processing company having very strong fundamentals. First recommended by me at 118 levels, this stock ran upto 390 levels with a month and a half of my reco. Subsequently a 2 for 1 bonus was announced by the company, but since the record date was not informed, the stock corrected back to around 250 levels. The record date for bonus has been announced as 8th Jan, 2007 and the stock has started rising again after my second buy call. Currently at 309 levels, Gupta Synth is still trading at a PE of less than 5, leaving a great scope of appreciation. If the company continues to post good earnings figures consistently, a target of over 500 can very easily be achieved for the medium term investors. Visit the company's website: www.guptasynthetics.com for more information about the company.

11 comments:

Superstar said...

Gupta Synthetics became ex-bonus on 5th Jan, 2006. Two shares for every one share held will be allotted to the shareholders.

monica said...

superstar,
Thanks for all your recos. I made good profits from your Basant Agro Tip.Current invested in Gupta synthetics.
Can u pl give me the immediate target for Gupta Synthetis????

Also do u think is it the right time for me to enter the Lok Housing stock as the market seems to be comming down very day. Await your advises
Regards,
Monica.

monica said...

Superstar,
Thanks for all your recos. I made good profits from your Bastant Agro Reco.
Currently holding Gupta synthetics. What is the immediate target for this stock???
Also needed your advises if it is the right time to enter Lok Housing as the stock price is coming down every day .. Do u think it is the right tie to enter?
Await your advises.
Regards,
Monica:-)

Superstar said...

Dear Monica,
Thanks for appreciating. As posted by me in my blog about Market Outlook yesterday, the markets dipped today. There may be a deeper cut, so one must stay cautious and buy only select stocks. The best way of investing now would be to not buy in one go but to stagger one's purchase. Suppose you have 100 bucks to invest in a particular stock, then you can spread your purchase in 4 parts of rs.25 each rather than buying in one go. All the stocks named by me in this blog are good buys on every decline, and that includes Lok Housing also. One can accumulate with a medium term view of say next six months.

Cheers and good luck,
Superstar

Anant said...

Hi SuperStar,
I am new entrant in your world of stocks. I have accumlated Gupta Syn . Since stock has gone ex -bonus and currently trading ar Rs 90. Dont you think it will dip further once bonus shared are credited to the demat account.
So My Q is shall we exit with existing stock at current level and buy back later when stock price get stable after the allotment of bonus shares. My avrage price of buying after ex- bonus is Rs 101/-per share.
Kindly suggest
Andy

Superstar said...

Dear Anant,
I think there is no point in selling Gupta Synth now unless you are a very short term trader. If at all it goes down to 80 or nearby levels in the present market correction, one can buy more to average one's cost price. I think the next trigger for this stock will be the declaration of the third quarter results.

Cheers!
Superstar

gsa said...

Dear Superstar,

Couple o' quick queries please :

A) When can we expect Q3 results from Gupta Synthetics? How surprising would it be?

B) After Bonus shares flow in, would the stock price go down?

C) People like me who bought it late before Bonus date are under loss already. If you can advise us on Short,Medium n Long term targets you have in mind, it would be very helpful.

Awaiting ur response.

Cheers,
gsa.

Superstar said...

Dear GSA,
Thanks for writing in. Here are your answers:
A. The date for declaration of result is given on the exchange site by the company. At the time of writing this, no such info was available on the exchange site. Most companies usually declare their 3rd qtr results by Jan end-Feb beginning. The results should be good as per info given to me.

B.I don't think that after the bonus shares reach your account, the stock price would go down much. According to me, it is a buy at current levels.

C.As you say you had bought the shares very late and after the rally had taken place, you will need to keep patience to see the results. My short, medium and long term targets are 105, 150 and 240 approx. respectively.

Cheers!
Superstar

gsa said...

Thanks a lot for your response Superstar. Wish all the targets in your sight come true soon.

Also, reg the google links I clicked all the links and just went backwards. Will that be enof? (of course, the pages were fully loaded b4 I clicked back)

FYI, am holding Yash already which am going to hold for loong.

Cheers,
gsa.

Superstar said...

Gupta synthetics results are out and they were great. The company posted an eps of Rs.21 for December qtr and the nine months eps now stands at Rs.53. Very cheap valuations, one can accumulate for long term. Cheers!

jig said...

hey dude wats ur take on this now.
do u have ni info abt the extraordinary deferred tax liability?