For a buyer of the total company the market cap is 1800 crores - 400 crores=1400 crores.
Recently I had to buy antibiotic ciplox tz . All chemist sellers were pushing me this drug made by Cipla which cost Rs 125 per strip where as on some R & D same salt combination Zocon being made by FDC was available for Rs 26 only. This shows that FDC promoters are ethical players but at the same lack of aggression implying lower growth n PE for the company .
So when will rerating happen for company?
The stock is showing some positive vibes in negative market. What you guys think about the targets for this script?
rakesh
u are letting down the value pickr forumā¦its a place to discuss ideas not like the tv channels where they discuss price on day to day basis .
ur questions reflect greed and haste to make fast money and when that does not happen try to blame everyone else except self .
the lesson is markets work in probabilities ,ā¦u need to devise ur own plan ā¦be more accountable ,ā¦do your own research and then only jump in .
regards
ranvir
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but i want to sell fdc soon to buy tv18 broadcast. i am ready to sell for no profit and no loss situation that is 103 rs.
by the way great people on the forum like hitesh has already anwered many of my queries.
valuepickr is a forum where u can collect more wisdom ā¦share ur knowledge and in the process learn .
if you focus more on the skillsā¦knowledge and improving ur psychological aspects.money will be a side result for sure .
happy investing
ranvir
Rakesh, currently you are fixated on the price 103 that you have bought. This is a bias known as Price Anchoring. It is quite natural. However, it makes sense to overcome such bias and consider the decision independently of your buying price.
At the current prices if TV18 is more attractive, just sell FDC and buy TV18. It is quite possible that by the time FDC goes to 103, if you think TV 18 is good it might actually have increased by more, so again you might lose. Would you sell FDC at 103 and buy TV18 for 37 or would you sell FDC at 95 and buy TV18 at 33? Again you might think, you wanted to buy TV18 at 32, but 37 is too high.
We actually donāt know how the price might could behave, you might be able to sell FDC at 103 and buy at TV 18 at 30 also, but who can predict that?
If you are convinced that TV18 is a better long term opportunity, go ahead with the transaction NOW.
No one, even with due respect Hitesh, can tell you WHEN you can sell FDC at 103.
Rakesh,
Coming to the query about selling fdc and buying tv 18, what have you thought what your reaction will be if after you sell fdc for 103 and buy tv 18 for around 33, say fdc goes up to 115 and tv 18 falls down to 27-28? (This may not necessarily happen but one has to have a reason to buy a stock in the first place and a reason to sell that same stock)
You cant expect to have free lunches in stock markets.
Instead of these jumpy conclusions and hasty decisions, as mentioned before try to learn by reading a few books ā I would recommend One Up on Wall Street by Peter Lynch to begin with (it would be 350-400 Rs well spent for entire lifetime of learning) and then try to follow some good stock threads to see how the stories progressed in terms of fundamentals and price targets.
I guarantee you that if you read the above book from first to last page once or preferably twice you will never need to ask such questions on any forum.
As put up earlier, no one can predict exact targets and exactly when these will be achieved in FDC or for that matter any other stock. The best you can do in stock markets is to do sufficient research to develop solid conviction to buy into a stock and then stick to it.
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Hitech/Akbar,
I have read books like:
Intelligent investor, one up on wall street, 5 rules of stock market investing, etc.
I have actually investment type of portfolio with reasonably big investments in each stock [8 stocks]. But from time to time say each year once i fall pary to some news and get stuck. But again with each mistake the learning is becoming more and now a days i dont do trading at all. only this one i saw the news and i entered without thinking much about the consequences.
Rakesh,
Since you have already read these investment books, I would suggest you to read Thinking Fast and Slow by Daniel Kahneman.
Thanks Akbar,
Do we have pdf file for this book?
Rakesh ji, jaane bhi do yaar. It happens all the time with almost everyone who is in the market. I have 30% of money kept for trading and always look for such opportunities. Sometimes you win sometimes things go wrong. As long as your core investment portfolio is intact and doing wellā¦ nothing to worry!
Hiteshji, Please share something.
Hi Rakesh,
Why donāt you book the loss & do some tax planning,as year ending.Even if you donāt have profits ,you can carry forward losses for 7 years.So please enjoy the losses also,for the larger benefit for all.
ValuePickr prides itself on being largely a self-moderated forum. Thanks Members for helping to keep it that way.
Rakesh - if enough number of folks object to a certain style of posts from you that should surely tell you, this is running counter to the culture of the place.
Please respect community feedback and refrain from multiplying comments that could be seen as doing little value addition or is irrelevant to the main discussion. And please do not indulge in personal attacks.
Failing to adhere may invoke direct moderation. Members thanks for your patience and helpful guidance to Rakesh.
Rgds
sorry administrator
Hey Rakesh,
Thanks for being a sport. look forward to your continued participation, asking questions and adding value to ongoing discussions.
Best,
Admin
fdc has come out with modest q3 fy 13 results.
period q3 fy 13 q3 fy 12 9Mfy 13 9M fy 12
sales 178 162 588 544
NP 35 32.9 122 104
eps 1.92 1.79 6.7 5.66
the best news about the company comes in the footnotes.
company has bought back 15000 shares in dec 12 quarter whereas since then from jan 1 2013 till date, it has bought back 7.67 lac shares. total buyback is now 13.22 lac shares.
If the keep on buying back shares as they do, over next few years they are going to add a lot to shareholder value.
FDC fy 13 results out and seems to be showing some growth although moderate. Much of lack of growth seems priced in at cmp of around 88-90.
period q4 fy 13 q4 fy 12 fy 13 fy 12
sales 173 156 772 710
NP 36 28 155 134
eps 1.99 1.56 8.5 7.3
div of rs 2.25 per share declared.
market cap of company is close to 1650 cr
cash and eq at 450 cr.
If one takes out this cash then EV comes to around 1200 cr.
Without cash PE comes to around 7.8 and for a high quality company generating lots of cash this seems to be an attractive valuation for someone with patience.