Thursday, February 25, 2010

Lesha Energy Ltd.....cmp 112...

If someone remember I gave a call on Lesha Energy at 43.30 along with Telecanor Global at 35.85 on 31 Aug 09.
Means 6 months back.Telecanor has underperformed but Lesha has outperformed even the market in big way.
It touched a high of 121 and is now today at 112 after touching 80 in todays trade but today it make a new high of 128 as well .The reason it touched 80 was because Lesha Steel is getting demerged from Lesha Energy and the shareholder of Lesha Enery will get 1 share of Lesha Steel for every 2 share held.
So if someone is holding 200 shares of Lesha Energy then they will get 100 shares of Lesha Steel.Lesha Steel is going to be listed in near future and heard that it will be listed around 30-40 and hence today Lesha went down to 80 , means 32 down from previous close as it become XR today.But there is Oil story in Lesha Energy and hence  after touching 80 it bounced back to previous close of 112.Means as of now the price remains same and one get shares of Lesha steel in FREE ..........That also implies that even after the Lesha Steel is demerged market still looks Lesha Energy as a value play and its value still remains same after the demerge of Lesha Steel.
That is the beauty of Stock Market.Lesha is giving enormous return and I think it will keeps on giving such type of return in future as the story is still to unfold.If one looks at the results one will find nothing in Lesha Energy but still it is quoted at 112 and strategic investor are ready to buy stake at 100-110 as I always use to write , don't always look at earning or RONW or EPBDTA (whatever), Cash Flow,Mcap, Sales.........they needs to be looked but one don't need to follow it religiously.Just imagine when someone can see nothing in it, the topline or bottomline is almost NIL and still it is quoting at 112 then what can be the price when the real story materialize?
I have not written anything on Lesha Energy except when I gave the call that they have interest in Oil Fields.None also came out with due diligence and hence I kept the discussion as it is......and I will still not write anything more in Lesha Energy.
Well, coming to TeleCanor , the dispute betweeen that big investor and management seems to be over as I read in bse site that he has asked for conversion of warrents as he has taken back the complaint from SEBI about mismanagement of funds.......So TeleCanor should be back in reckon any time soon.....


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  4. Hi Rajeev,

    As I had already mentioned a few days back that I am an amateur investor, kindly bear with me in case my doubt is trivial.

    In one of your earlier posts "Things to see while picking stocks", you said one should look for lower P/E. But Lesha has a humongous P/E! You also gave a theory about what to do in case of high P/E, which I couldn't grasp entirely.

    Could you/anybody kindly suggest a site or a book related to Indian markets which explains all these fundas.

    Or, if any one is generous enough to spare some time and explain these things, please do contact me on

    Warm Regards,

  5. honey,
    Gremach is same gr as of AustralCoke and best thing is to avoid of now..

  6. Rajeev,

    I wanted to know your view on Shirpur Gold[dont look @ balance sheet :)] and Kerala Ayurveda.

  7. Hi Rajeev ,
    I am still holding telecanor,
    I could not catch Lesha .. at 43 .. since , while u given call, at that time also it was in circuit.. and it was continuous in circuit till it became 80 .. then its been there for sometime, and again moved to this level..
    Looking at your article, it still has steam left to run further.
    Can you pls suggest if I buy if tomorrow, will I get Lesha steel shares ?

  8. hi, rajeev ok better to avoid for new buying in gremach infra, but i have taken some quaninty in jan 2008,but to do for that, is sell out or hold or averages, is any penality will be given by sebi, as same promtor,m.d of austral , or may be any chance of delisting , what do u think on that, thanks

  9. Snehal,
    I donno what happened with you at that time.
    I remember very well that after I gave call on both,Lesha did reacted to 41.....I can remember that very well....try to see the price after 31 Aug 09......and see if ever went for UC all the way to 80....
    Anyway,I still think Lesha Energy is a good buy but if you will buy now you will not get Lesha Steel shares as it has already become XR....

  10. honey,
    Just hold and if u have bot small quantity then u can average it.
    It is not going to be assured.......