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Eastern Silk. January 13, 2007

Posted by Bhavin in Not Stocks..
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According to a report released recently by brokerage firm Prabhudas Lilladher, Eastern Silk reported third quarter results, which were slightly better than expectations while its revenues grew by 5.3% yoy and 7.3% qoq to Rs 1,251m, profits grew at a much faster pace by 68.2% yoy and 13.8% qoq to Rs 184m. Topline growth appears muted due to the appreciating rupee.

The report further added that, at the CMP stock is trading at 9.4x FY07E and 6.7x FY08E EPS estimates of Rs 34.7 and Rs 49.1 respectively. Its competitor Himatsingka Seide is trading at 23.2x and 13.8x consensus EPS estimates of Rs 6.0 and Rs.10.0 respectively, when compared Eastern Silk appears to be significantly undervalued. We maintain buy recommendation on the stock.

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We found your blog very informative.
We all know that Indian stock market has become volatile now a days. One day its going up and another day its coming down. So we all should like to know what is the reason for it.
Well We say its the game of FII how they direct the market. They have huge money with them they can direct any share as per there needs and requirement.Now its a alarming time.

It is unlikely that regulatory institutions or the government will take up the cause of the common man. Thus it is essential for him to have a few essential ground rules to follow prior to investing in the stock market.
Rule No 1: Do not buy stocks on the basis of tips or recommendations.
Rule No 2: Invest for the long-term. If you have an investment horizon of 5-10 years and are invested in the right sectors, chances are that you will gain.
Rule No 3: Invest money that you can afford to lose. In other words, do not put your entire life savings in the markets.
Rule No 4: Study the market thoroughly before you invest.
Rule No 5: Avoid putting all your eggs in one basket. Hence, diversify your portfolio


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