Investment Idea (26-5-14 For 6-12 Months)

LAKSHMI ENERGY & FOODS LTD  CMP RS. 25.45 ON  26-5-14

(The stock has made an all time high of Rs.340/ on 17.9.2008)

POSITIVES:-1.Good EPS                        NEGATIVES:-1.Why running at low P/E?

                       2. Solid Book Value

                       3.Technically brilliantly poised for an up move

 

The stock looks good both financially and technically, I feel that it has bottomed out in the range of Rs.19-21 and is ripe for a reasonably good up move, The only concern is  that it is running at a very low P/E why ? may be it has not catch the fancy of the investor now but some day it will ,therefore one can invest 25-30% of the marked funds for the stock at current market price and then buy on dips  or on the momentum but be alert if it closes below Rs.21 and  get out of the stock if it closes below Rs.19.The upside targets for the stock could be  27.40 / 32.10 / 42.15 / 48.50 / 54.20 / 74.80.if the stock starts crossing the targets use them  as support and exit point.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price of the stock moves up to gain maximum profit.

NO  NOTE:-1.PRICE STATED HERE IS OF SPOT MARKET.

                 2.RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

                 3.IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL  PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade