First, I am quite positive on LASA. It is more of a call on the state of our markets which are quite overheated according to me, and at every level of exuberance, I find it prudent to keep booking profits. Many of the same stocks remain on my buy list to move back into when I feel comfortable.
If it was any other company I would have exited the day it listed in the current market scenario. That should say something about my confidence in LASA.
Today I would sell even HUL and Bajaj Finance
Having said that, here is the situation on why unit 5 is important according to me and why I set the October end target. Please feel free to update and advise. You are one of the few people on this page who actually has something to add to the conversation, quite frankly.
Well, when we met the management they told us that unit 5 is ready to start and can be started by them any day. We had some reason to believe that some or many equipment has been moved out from that unit and did ask, and they said no, nothing has been moved out. You have just confirmed, if correct, that indeed, some reactors have been moved out. So why did the management not candidly answer. Since we did not visit the plant, it was a critical thing for us to get confirmation that the huge capacity is actually existing, and as a investor I can get confidence only when it starts and not on promises. Thus my deadline for the time I was willing to give them.
The other reason for the unit 5 is, the are nearly at full capacity. The major growth can only come with using additional capacity and reaching 500 Cr is sales is not possible without this unit.
Also, like I said, today if the market was not overheated, I would have given a much longer rope to LASA to perform, but it is a speculative market call to reduce my holdings to a minimum and not a strong co-relation to LASA.
Disc- Invested and may buy on any dips.