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Jyoti Structures

Discussion in 'Fundamental Analysis' started by virudjoshi, May 5, 2016.

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  1. virudjoshi

    virudjoshi New Member

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    Hi team,
    Can anyone of having knowledge about Jyoti Structures suggest about what's happening in this counter? It has been on a gradual decline although the results are trying to improve.
     
    virudjoshi, May 5, 2016
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  2. shabbir

    shabbir Administrator Staff Member

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    At what levels are you in this counter. Decline is because it is quite gradual and not significant.

    Whats your view. Trade or investment when you entered?
    What was your reasons to enter in this stock. Can you share those details as well.
     
    shabbir, May 6, 2016
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  3. shabbir

    shabbir Administrator Staff Member

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    BTW it is not gradual increase but I see a gradual decrease and EPS is going down since last 5 years and has turned negative in Mar2015.

    Company has not shared dividends in couple of years suggesting cash issues.

    Sales also contracted in March15 but that could be just one of.

    Debt equity ratio has increased to 3.5+ which means soon company will become bankrupt.

    What fundamentals did you use to enter in this counter.
     
    shabbir, May 6, 2016
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  4. virudjoshi

    virudjoshi New Member

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    Dear Shabbir,
    First and foremost... a big thanks for quick and elaborate reply.

    I have started accumulating this from the levels of 11. This is a theme based pick. Government being quite serious about improving power condition in the country, i thought of this. Market cap and P/E are positively considerable.

    As you have rightly pointed out, shareholders are worried about the decrease in EPS and company's cash condition.

    What is your outlook? What do you recommend to do with this?
     
    virudjoshi, May 6, 2016
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  5. shabbir

    shabbir Administrator Staff Member

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    Book the loss unless you see things turning around for the company.
     
    shabbir, May 6, 2016
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  6. shabbir

    shabbir Administrator Staff Member

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    What do you mean by theme based pick?
     
    shabbir, May 6, 2016
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  7. virudjoshi

    virudjoshi New Member

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    Power sector is set for a turnaround... with lot of focus on improving infrastructure and power condition in the country!!!
     
    virudjoshi, May 6, 2016
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  8. shabbir

    shabbir Administrator Staff Member

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    So why not invest in the best power companies. If you want to be investing in the companies that are at the verge of bankruptcy, why not Suzlon?
     
    shabbir, May 6, 2016
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  9. virudjoshi

    virudjoshi New Member

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    Hi Shabbir,
    I loosened the position in JSL and as suggested by you in various blogs... I shall be more vigilant about the vital ratios and overall cash position of the company. It is still unfortunate that the retail investors are unaware of picking the right stock and end up in buying the wrong stock.
     
    virudjoshi, May 17, 2016
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  10. shabbir

    shabbir Administrator Staff Member

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    Completely agree with you and though I don't have a finance background the only reason for my investment blog.
     
    shabbir, May 17, 2016
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