ARSS Infrastructure recently came out with an IPO at a price of Rs.350. The issue was well subscribed and listed spectacularly at Rs.650. Currently the price is around Rs.1300, up more than 300% , so what's the buzz?
To start with, the IPO pricing was done wisely and it left a lot on the table for the investors. The company recently declared the current year's earnings and is well within market expectations. They have done about Rs.60 earnings per share and current price it is well priced at 20 times.
So moving forward, the company is expected to do about an EPS of Rs.110 for FY11 and considering at the industry average P/E of 15 times, the stock is more or less priced in.
Hence one can book profits in ARSS Infra considering its sharp run-up from 700 to current levels of 1300 and wait for substantial correction before re-entering this stock.
Popular Posts
-
Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers.... -
Google has launched a contest to solicit ideas about how to help humanity - Google Project 10tothe100 . "To mark our 10th birthday an... -
Trading holidays for the calendar year 2023. The National Stock Exchange of India (NSE) has notified trading holidays for the calendar ye... -
Before we get into details of NSE Level 3 Data , it is important to first understand the basic operations of the stock market. All publicl... -
What is Gold Bees or Gold ETF? Gold ETFs are open-ended mutual fund schemes that will invest the money collected from investors in stand...
