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Wednesday, January 24, 2007

Maadhav Granite & Realty Ltd. (Madhav Marbles)

I had initially started coverage of Maadhav Granite at the price of Rs. 90 with a BUY rating. Within approx. one month of my call, the stock raced to 161.5. Since then it retraced to 140 levels, where it spent quite a lot of time consolidating. The third quarter results are now out, and as expected, they are excellent. The EPS for nine months now stands at Rs.19 plus. The management is good and some new projects are on the anvil. It is a BUY with a target of Rs.250 in the medium to long term.

7 comments:

brd said...

Dear Superstar, I already posted on the MC board about this scrip being in red after the excellent results. I came to know that this is a normal phenomena that on the day of announcement, in spite of great results, some stocks do reacts a bit on expectation of good results . So, I'm looking forward for the upward movement. Thank you for your consistent efforts to enrich others who are not even known to you!!. Great philosophy.Cheers

vinay said...

wat say about SRF Ltd. Seems has brokenout and shud run pretty well now.

Rakesh said...

Hi Navin,

Your recos are great.

You recommended Madhav around 90 and now its at 140. 90 to 140 rally was fast.

Now since 2 months or so, its stuck at 140 levels.

Few questions:

Why it rallied from 90 to 140 so
fast?

Why is it now waiting at 140 for quite some time?

Why will it rise to 250 now?

I know the stock is fundamentally good, posted excellent results, had a name change recently etc etc but none of these coincides with the time when it rises or waits.

Please drop me an email at dubeyrakesh at gmail.

Thanks,

PS: I am clicking on the Ads on your side so that u can keep up the good work..

Superstar said...

Dear Rakesh,
Thanks for your appreciation. Madhav made a quick run from 90 to 160 and then has been consolidating in the 140-150 range since the last many weeks. The nine months eps now stands at nearly rs.20.....so, we can project the full year eps to be approx. Rs.27. You have asked me the logic behind giving a target of 250 for this stock. The logic is this.....even if you give a conservative PE rating of 10 to this stock, the fair value comes out to be rs.270 (10x27). Now, when it will reach there is the question. I would say that it's just a matter of time, it will eventually go there provided it keeps posting good results. Technically, it has spent a good amount of time consolidating at the current levels and looks ready for a fresh breakout to me. So, hope for the best.

Cheers!

GSM FIXTURE said...

hey guys wat u guys think of buying SREI infrastructure plz advice

Chandrashekar said...

Maadhav Granite is slowly inching up from the low 79.50 it touched 2 weeks ago. It is only a matter of time (and a very short time) before it reaches / breaches the 125 mark. After all, with the FY 2006-07 EPS expected in the range of Rs.27, 125 levels in a short time in a steady market is very much on the cards. Prospective investors should certainly consider grabbing this stock at pre 100 price levels.

Mohan said...

Hello Superstar,
I have seen you in lots of discussion boards.. Would need your advise on one of the things I have stuck with..
I have actaully invested all my hard earned money on Reliance infra and would like to know the future of this scrip.
I dont mind waiting on this...
I have a average 2780 and hold 300 shares. Please advise, or let me know if its worth waiting for a year on this stock