Stock Ideas

[Jagbir Singh]

Dear Vijay/ Ideas,

I am regularly watching the stock IFCI for the last one month. The stock is moving upward despite of the Market up-downs. The latest results are also good and certain appreciable moves yet to come. Is the stock worth buying for short term/long term. What would you say?

[Vijaythanvi]

As you told you are watching and share is moving up and up, I remember when this share was at 16-20 that time I recommended this share on this board.
Certain things happened behind this stock that is why I recommended that time but now I feel it has gone up like anything.

You can buy for short term this share but keep stop Loss strictly then take risk.

I feel try to buy on correction on this counter, of course share is not bad for short term trading.

One thing never chase price of the stock alwyas buy at your price.
As I have seen company's fundamental PE Ratio is 3.86 and EPS is nearly 14 Rs., Sales has gone up nicely and operating profit gone more than 1000% and Current ratio is above 8 as well Quick Ratio also above 8, these all fundamental shows that share is very good but significantly one factor is there that is unsecured loan of company which is huge and that is making some bubble in the mind and also Payable tax amount which is not reduced eventhough company has good profit margin and same time company manages to reduce there expenditure by 86% YOY.

Looking all these analysis, I think things are not justifying in logical way, which is not making company so sound, so some bubbles are there.

I advice simply that don't chase the price becuase it has gone up like anything and also it can go up same way but there is pure risk and if you have strong risk appittie then you can trade in this counter for short term.

[bull]

i agree with vijay.

01) buy at dips,
02) buy with stop loss & short term,
03) buy for target between 54 - 56.