Price: Rs. 40.45
Target: Rs. 80 : 120 : 150
Period: 1-2 years
P/E: 6.78
Industry P/E: 44.31
Book Value: Rs. 60.27
Price/Book: 0.67
Target: Rs. 80 : 120 : 150
Period: 1-2 years
P/E: 6.78
Industry P/E: 44.31
Book Value: Rs. 60.27
Price/Book: 0.67
Fundamental Reasons:
1. Company is virtually debt free.
2. Stock is trading at 0.67 times its book value.
3. Market value of Investments Rs. 261.93Cr. is more than the Market Cap Rs. 96.23Cr.
1. Company is virtually debt free.
2. Stock is trading at 0.67 times its book value.
3. Market value of Investments Rs. 261.93Cr. is more than the Market Cap Rs. 96.23Cr.
Technical Reasons: Rounding Bottom formation.
Long term reversal signalling shift from a downtrend to an uptrend. The formation of the pattern comes from a downward price movement to a low (point A to B), followed by a rise from the low back to the start of downward price movement(point B to C) - forming what looks like a rounded bottom.
The pattern is preceded by a downtrend but will sometimes be preceded by a sideways price movement that formed after a downward trend. The start of the rounding bottom (it's left side) is usually caused by a peak in the downward trend followed by a long price descent to a new long-term low.
VOLUME is one of the most important confirming measure for this pattern, here volume is high at initial peak (or start of the pattern) and weakened as the price movement headed towards the low. As the price moved from the low to the price levels set by the initial peak, volume were rising.
The pattern is preceded by a downtrend but will sometimes be preceded by a sideways price movement that formed after a downward trend. The start of the rounding bottom (it's left side) is usually caused by a peak in the downward trend followed by a long price descent to a new long-term low.
VOLUME is one of the most important confirming measure for this pattern, here volume is high at initial peak (or start of the pattern) and weakened as the price movement headed towards the low. As the price moved from the low to the price levels set by the initial peak, volume were rising.
About Company:
HB Stockholdings Ltd. is an Investment company belonging to the Delhi based HB Group & has huge value in investments in various quoted equities.
The single largest investment of the company is 30.37 Lakh shares of Jaiprakash Associates. The shares were acquired by the company a few years back at an average price of less than Rs.40 per share.
Besides its investments in Jaiprakash Associates, the company has investments in many other listed companies – these include DCM Shriram Industries, Chemplast Sanmar, Greaves Cotton. The total number of quoted equities comprise over 150 stocks, whose value at the current price is roughly Rs.250 crores. Besides, the company has investments of around Rs.13 crores in unquoted equities. This includes investment in Credit Capital Asset Management Co. Ltd. which manages Taurus Mutual Fund.
HB Stockholdings Ltd. is an Investment company belonging to the Delhi based HB Group & has huge value in investments in various quoted equities.
The single largest investment of the company is 30.37 Lakh shares of Jaiprakash Associates. The shares were acquired by the company a few years back at an average price of less than Rs.40 per share.
Besides its investments in Jaiprakash Associates, the company has investments in many other listed companies – these include DCM Shriram Industries, Chemplast Sanmar, Greaves Cotton. The total number of quoted equities comprise over 150 stocks, whose value at the current price is roughly Rs.250 crores. Besides, the company has investments of around Rs.13 crores in unquoted equities. This includes investment in Credit Capital Asset Management Co. Ltd. which manages Taurus Mutual Fund.
Risks & Concerns:
Any effort on the part of management to dilute the value of the minority shareholder is the major risk we see with the investment in HB Stockholding.
Any effort on the part of management to dilute the value of the minority shareholder is the major risk we see with the investment in HB Stockholding.
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