Saturday, February 9, 2008

LOK HOUSING

LOK HOUSING is a company engaged in construction of Apartments, buildings etc. and is making substantial growth. The company is doing fairly well in their performance and profitability front.

With the interest rates softening, demand in realty sector is expected to pick up. The company has executed various ambitious projects in Mumbai, Thane etc. and further good projects are in the offing.

I request investors to recall a portion from my Lesson No. 3.

QUOTE

In many cases, there may be an impending news of promoters or persons associatewith the promoters or directors who may acquire shares of the company and increase their holdings. The company may be in the process of allotting shares or convertible warrants to above persons. In such cases, it is very very safe and advisable to purchase shares of such companies because, such shares will get re-rated very soon.

UNQUOTE

The company has become newsworthy and is attracting attention to the following facts :

a) The company had issued equity shares to Bennet & Coleman at Rs196.80 per share (Rs.10.00 + 186.80 premium). The share capital of the company has increased in Dec. Qtr. 2007 as compared to Sept. Qtr. 2007. There must have been some other issue also.

b) The company has raised the FII limit to 49%.

c) The company is going to issue convertibe warrants/shares to promoter group companies at about Rs.350.00 (Rs. 10.00 + premium).

Therefore, in my opinion the share is a good buy at the current levels near Rs.210.00or so.

I am just providing inputs to investors. Investing or not is your decision.

Kindly note :

a) We advise only regarding fundamentally strong and performing companies. The companies may be mostly profit making and in a few cases, they may be turn around companies.

b) Please go through our fundamental analysis carefully, verify the facts and figures (if you need to) and only then invest.

c) We expect investors to have a time horizon of at least one year and more.

d) We do not advise for short term investing, which is risky.

e) Despite all these, we do not take any responsibility for your financial matters. Investment is solely your decision.


(AJAY SINGH RATHORE)
KASHIWALA

2 comments:

LAPETU said...

Lok Housing & Constructions Ltd has informed BSE that the shareholders at the Extra Ordinary General Meeting (EGM) of the Company held on February 08, 2008, have approved, by passing Special Resolution, Preferential Allotment of 50,00,000 Convertible Warrants to the Promoters of the Company.

Kaushik said...

Hi Ajay,
Since Lok Housing has allotted shares to BCL, there are a lot of news coverage in ET regarding LH. These PR is also being supported by incresed mention of LH in blogs. But a few questions remain in my mind:
1. Why PE of the company is so low when every other company is at sky high level PE?
2. Why investor communication is so poor in LH?
3. The invesstor community has gained very little from the company till now, in terms of payouts.
4. So now why should the market rerate the stock now?