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Wednesday, June 20, 2007

MADHAV MARBLES REVISITED

Madhav Marbles was first recommended by me around Rs.90 levels approx. six months back after which it rallied to 162 levels within approx. one month of my reco. It stayed in the 140s for quite a long time. Then after the market crash in March, this stock has come down to its current lows of around Rs. 75. The company has already posted an EPS of Rs.20 for nine months and the full year EPS could be approx. Rs.25 or more. The reason for its fall to current levels could be the depreciating value of the Dollar against the Rupee, besides Operator activity. The company has a board meeting on the 28th of June, 2007 to declare the annual results and discuss dividend. I think it is available at a steal presently and can give rich rewards in the future, if held patiently. The delivery volumes are a very high 79% which indicate accumulation. Cheers!

13 comments:

ashish said...

hi superstar...
glad to see you back after such a long time ... welcome back and keep up the good work... also if you can spare the time ... could u suggest a value pick out of the spate of IPOs coming through ...would be highly obliged

akash said...

Navin does not suggest investing in IPO as according to him its totally waste of time and money. But i still feel real money can also be made in IPO provided u understand the company business model, money to invest and patience to invest for long term.

Superstar said...

Hi Ashish & Akash,

I don't track ipos normally and do not invest in them as you hardly get an allotment of 10-20K worth of shares in ipos. But to say that ipos are a waste of time and money would be incorrect and an exaggeration, Akash. Some recent IPOs like Nitin Fire, for example, have given absolutely fantastic returns on listing. But retail investors get so little allotment that even if your share doubles on listing, you hardly make 10-20K rupees. Ofcourse, big players who are somehow able to get HUGE allotments by hook or by crook, make tons of money in IPOs. ;)

Also to give some info on Madhav Marbles.........the company declared a 20% (Rupees two) dividend on its shares today.

Cheers!

claudia said...

Hi there, finally reached....
Not a very active blog, but.
Mhadav still gives me grief, but I keep my fingers crossed.
Greetings
C.

ashish said...

hi navin

if i may add vishal retail to this list now ... it beat nitin hands down and gave a listing gain of close to 200%...for a small investor like me who was not issued any share though i had applied for the full retail quota of rs lakh this seems like a missed opportunity... the buzz in town right now about everonn and allied digital...
i have the refund from the vishal retail IPO which one would you suggest that i should bet on.
regrds
ashish

apoorv said...

hi superstar,
What are your views on Tyche Peripheral Systems?

Superstar said...

Welcome to the site, Claudia. I hope Madhav's upmoves would cheer you up soon.

Superstar said...

Hi apoorve,

Tyche peripherals has improved its bottomline a lot as compared to results of previous year. But it is trading at a pe of approx. 10 which is fair, according to me. Also recently some people have been alloted the share at 16 rs. by the management. In absence of much info about the company, I cannot comment much on it. Cheers!

Superstar said...

Although the fourth quarter results of Madhav Marbles were disappointing, I have a feeling the company might have shown poor results deliberately to pick up the stock from the market by panicking the retail investors in collaboration with the Operators. That is exactly what's happening and the share has gone up after declaring results, inspite of poor results. Even after considering the new reduced eps figures of 06-07, the stock is still trading at a PE of 5, which means it is still grossly undervalued. Book Value of the stock is nearly 100. Cheers!

Amit said...

Hi sir,

The madhav marbles cmp is 84 around, shall i buy at currnt levels ? Pls guide.

Superstar said...

Hi Amit,

I personally would buy Madhav Marbles at 84. But it depends on what your investment goals and horizons are while making your decision.

Cheers!

Chandrashekar said...

Unconfirmed (and of course unsubstantiated) reports point out that Parsvanath Developers is in dialogue with Madhav Marbles for the controlling interest as they plan to use the facilities in North India (marbles) and in South (Salem - granite) for their own building requirements in order to achieve consistency in quality of tiles and granites and simultaneously be cost effective for their construction requirements. The current price of approx. 94 which has a PE of less than 5 is indeed a very attractive price for Parsvanath. Current indicative price for stake transfer is as high as Rs 190 per share. If things go as expected, the stake transfer will happen within 2 months with changes in the board of directors (Parsvanath's nominees being inducted)likely to happen by mid October.

Even at Rs.200 and considering EPS of Rs.4.93 for Q1 2007-08, the PE on a price level of 200 will be only less tahn 10 which is still very attractive.

Parsvanath's involvement will most likely provide further boost to the stock price.

Good luck !

The current price of Rs 94

Ankur said...

Even I follow this stock closely, recently there is some FII buying in the stock and it spurted to 108 levels.
The SL is 102, but there are chances of going up only.
CMP: 104