Recently was going through Vijay Kedia’s story, Thanks to strongbrick for posting link on Atul Auto thread. posting it here again for a quick reference.
**“A.**Management, business growth and understanding the downsideriskare the most important things that I look for before buying any shares in any company.”
Though have the fair idea of concepts behind Management Quality and growth, I dont quite appreciate “understanding the the down side risk”. Though it has been used several times on VP as well.
Would invite VPs to share what their view of “understanding the downside risk” is and how do they actually do it.
If any company have promoter holding near 75%, does that mean there is very limited upside move for that stock?
Because as per SEBI rule promoters cannot have more than 75% holding and it would be difficult for MF or institutions to participate if market cap is lower than their thresholds.
If any company have promoter holding near 75%, does that mean there is very limited upside move for that stock?
Because as per SEBI rule promoters cannot have more than 75% holding and it would be difficult for MF or institutions to participate if market cap is lower than their thresholds.
High promoter holding is a positive sign i would assume. The promoter will have all the more incentive to produce good results.
Consistent High RoE , dividend yield , low debt automatically attract investors. Ajanta and Alembic pharma have ~74% promoter holding and are trading at near 30 p/e and 10 price to book, Equity capital is just abt 500-600cr
1). Generally the buuyback price is about 10% over the current share price. The stock options are issued to senior mgmt and directors. The insiders can use the increase in share price to exercise their options. I dont see it as much of a negative unless everyone starts doing so.
2). If the company is doing buyback to make up for the equity dilution thru options then it is not significant .
Add: Profit brought forward from previous year 313,573,055
Net Profit available for appropriation 429,111,407
These are figures from shivam autotech march 2010
annual report.
Profit was 11.55Cr and then they added 31.35Cr as profit brought forward as a result Net profit comes 42.91Cr.
Can someone please explain what is profit brought forward and should eps calculation be done considering this? What to interpret if this amount is huge?