Monday, December 2, 2013

ASHAPURA MINECHEM - UPDATE

Ashapura Minechem is one stock repeatedly recommended around Rs.40 level.Today stock hits its 52 week high @ Rs.60 .It was mentioned in my previous postings that the two negative points regarding this company is its pending court cases between few shipping companies and with some banks. Due to this reason ,its stock price was languish around Rs.40 level for a long period, even it reported excellent results in past two quarters. As per the reports of ET NOW ,company is in the process of a settlement between these parties and the same is expected to conclude within two months.Claim with shipping companies are expected to  settle around Rs.75 Cr v/s original claim of Rs.800 Cr and dispute with banks on account of  derivative transaction loss with a hair cut of 50 % .If this happens ,I believe there is scope for substantial appreciation even from current level.Recommending to HOLD the stock.

See ET NOW video HERE

Old posting on Ashapura HERE

25 comments :

  1. Sir, your comments are moving the markets now! Balaji Amines upper circuit! Keep it up...

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  2. Sir,

    I am holding few shares of Bharat Gear & Kalyani Forge. These two under PCA. Is it worth to hold or exit? what is your view sir?

    Thanks,
    Raj.

    ReplyDelete
    Replies
    1. PCA is an issue,try to shift to some other companies from same sector which are not in PCA

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    2. Hi guys, please explain me what is PCA stands for?

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  3. Sir,
    Whatever stock you recommend rises after ur post...People are being loyal to you...

    ReplyDelete
    Replies
    1. That's not a good practice.Try to learn more about the company to build conviction and take a decision only thereafter.

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  4. Any update on Prakash Industries? It is langgushing below the recommended price

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    Replies
    1. Company's name mentioned in the mining scam ,that's the issue.

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  5. Dear VP,
    Please correct me if I'm wrong. As per the latest AR of Ashapura, the o/s claims of shipping companies is Rs. 562 crorers which was carried forward in the balance sheet. Now as per ET now, the settlement may be in the range of 75 to 100 crores which results in a net gain of 462 crores. However, they had forex derivative losses of 600 crores which they have now agreed to settle for 300 crores (50%). This is clearly mentioned in their Balance sheet where they have overstated profits to the tune of 285 crores. Thus the net gain ( shiiping cos. claims + forex losses) should be about 162 crores which can be written back to the P&L account. Is this correct?
    Regards,
    Pratul

    ReplyDelete
    Replies
    1. Details are available in auditor's Limited review report

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  6. congragulations... All are your recommendations rocking. I got 200% profit from marksans and 50% from ashapura .... you are absolutely brilliant man.. i would like to ask one thing sir ... is it better time to enter entire rubber stocks because already depreciated 30% rubber price from peak whats your view on Rubfila intl and somi conveyor belt from rubber space awaiting your suggestions

    shaheer thrissur

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    Replies
    1. Only negative at this point is the possibility of a hike in import duty of Natural Rubber.

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  7. VP,what is your view in daichikarkaria?

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  8. dear VP Sir
    your previous recommandations ANIL , EPC Irrigations and blue star info trading low with low volume. Do you suggest now at CMP?

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    Replies
    1. Companies are good,but Anil is in PCA

      Delete
  9. Dear VP Sir,
    Good analysis with conviction. God Bless You.
    Pl give your views on Gillette India at current levels and also future prospects of TTK Health Care Ltd.
    Thanks

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  10. Sir,
    Plz share ur view abt Ybrant digitel.

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  11. Respected sir,
    Many many thanks for your insightful advice.

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  12. Dear Sir,

    Do you track Polymedicure? If so, please share your view on entering the stock.

    ReplyDelete
    Replies
    1. Before commenting ,just make a search,then we can avoid repetition.

      Delete
  13. Dear VP,
    Your views will be appreciated.

    ReplyDelete
  14. Sir, Ashapura result is not good. Kindly provide your views

    ReplyDelete

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