Lanco Industries
Ltd.
Industry: Steel
(Small/Medium)
(NSE: LANCOIN | BSE: 513605)
(Closing price on
03-06-2014: Rs. 40.80)
Price Background: The
all-time high for the script which is Rs.117.65 was made on 31-01-2008 and
all-time low of Rs. 12.00 was made on 13-03-2009. Low for year 2013 was Rs.
13.00 which was made on 05-08-2013. The low for year 2014 (as on date) is
Rs.21.60 made on 03-02-2014.
Fundamental: The
Company has turned around financially and posted Net Profit of Rs.38.70 crores
for FY 2013-14 against Net Loss of Rs.21.33 crores for FY 2012-13. The EPS for
current year is Rs.9.73 and the company has declared dividend of 15% also. At
the current rate, the stock is at very low P/E of 4.90. Therefore, I feel that
the stock has good potential to move up.
Technical: Technically
the stock is nicely poised.
Recommendation:I
expect a return of 50-100 % in 12-18 months. I therefore recommend investing at
least 30% of the marked fund for the script at the current level and then
suggest buying on dips. Kindly be alert if the stock price goes below 32 and
stays at that level. Please get out of the stock if price closes below
29.50.
Contact me for strategic guidance to enter
and exit the trade
