This market is giving us an excellent oppertunity to lapup some extraordinary stocks at throw away price and one of them is B L Kashyap Ltd.
After giving 1:1 Bonus and splitting it in 1 paidup the stock has taken a beating and I feel that it is beaten down badly then what it needs to be.
But that is market .When the selling comes , everyone wants to sell and that is the time we gets oppertunity to buy those beaten down stocks at throwaway price.These stocks are fundamentally sound stocks and according to me, anything over 70% stake by promoters becomes a sound fundamental Co.
Ofcourse , the sales,profit needs to be seen but if promoters are holding over 70% stake then one can be very sure that promoters have great faith in their Co and hence they are holding 70% and over stake.
Well, when the stock will run is another matter.That depends upon market sentiment, what Co is doing, how the earnings are discounted etc but my view says that any Co with a reasonable amt of sales and NP, and promo holding 70% and over stake , become a stock to go deeper and have a look.
Coming back to B L Kashyap Ltd, the sales should come around Rs 1400 cr this year( Mar 2011) as the last qr result is still not declared.The Mcap is around Rs 437 cr and hence the Mcap and sales ratio favours Mcap so it is a buy according to me.
Rest of the digging I leave it for my readers to find and take a call.......