Markets today didn't like L&T's numbers the share price saw a fall of nearly 6%. It is likely to fall further. As it is, the stock had seen an almost 26% rise in about 1 1/2 months time and was getting unstable at the top for sometime.
So far as the results are concerned, there has been some margin compression and also an increase in interest outgo. But the EPS YOY shows an increase of roughly 9.5%, from 76.1 to 84.1, which is heartening. It is to be kept in mind that the business of the company has to be seen in a slightly longer time frame as against an auto company for instance for which quarterly or even monthly figures can easily show the trend. All in all for an investor there is nothing to be worried about. Besides, the company has increased its dividend payout.and more importantly has announced a bonus issue of 1 share for every 2 held. A bonus issue points to the company's strength in terms of servicing the debt. As I mentioned the stock price had gone up very much prior to the results. It will now see some correction. At some point it will be a very good investment opportunity for investors to get in..In a previous post I had disclosed that I sold off my entire holding in L&T. So I stand vindicated on my stand. I now intend to enter again after some more correction.
There was some nervousness recently on what Bernanke,s testimony on monetary policy is going to be like.. Whether Bernanke will start reducing the stimulus.or not. Markets shed some gains and were pausing. But at the time of writing this post it is learnt that Bernanke has hinted at not cutting on the fiscal stimulus. American markets may therefore continue in it's streak of creating records. More on that in following posts.
Until my next then,
Happy investing.
Basudev
So far as the results are concerned, there has been some margin compression and also an increase in interest outgo. But the EPS YOY shows an increase of roughly 9.5%, from 76.1 to 84.1, which is heartening. It is to be kept in mind that the business of the company has to be seen in a slightly longer time frame as against an auto company for instance for which quarterly or even monthly figures can easily show the trend. All in all for an investor there is nothing to be worried about. Besides, the company has increased its dividend payout.and more importantly has announced a bonus issue of 1 share for every 2 held. A bonus issue points to the company's strength in terms of servicing the debt. As I mentioned the stock price had gone up very much prior to the results. It will now see some correction. At some point it will be a very good investment opportunity for investors to get in..In a previous post I had disclosed that I sold off my entire holding in L&T. So I stand vindicated on my stand. I now intend to enter again after some more correction.
There was some nervousness recently on what Bernanke,s testimony on monetary policy is going to be like.. Whether Bernanke will start reducing the stimulus.or not. Markets shed some gains and were pausing. But at the time of writing this post it is learnt that Bernanke has hinted at not cutting on the fiscal stimulus. American markets may therefore continue in it's streak of creating records. More on that in following posts.
Until my next then,
Happy investing.
Basudev
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