Tuesday, April 8, 2008

Lok Housing and Constructions

Niren Shah in the Business Standard, has put up a strong case for Lok Housing and Constructions Limited on account of sound land bank. The author has, in a well-organised article, reads into the undervalued NAV of assets with the company and has awarded an upside of about 46% from current levels.

The scrip is currently trading at Rs. 127. The stock has taken quite a drubbing in the last 3 months bottling down from highs of Rs. 360 (on Jan-5) to a low of Rs. 127 (Apr-5). The news article is enclosed here. There has been enough activity in the stock especially in the bulk deals areas (here). The price-earning of the stock is around 4.

Interestingly, not many people seem happy with this stock. The blogs in moneycontrol.com are talking about promoters not paying listing fees, bad corporate governance, promoters selling their stake etc. (here). I did notice that for the last quarter, inspite of a 58 crores profit - the company has not paid any taxes.

Any takers?

1 comment:

Blog Glogg said...

i have been sitting on this for more than 9 months and have actually seen the stock move from 200 odd to 360 and where it is now. i do feel sick at not exiting at 350+ levels but had a target of 600+ then. i am eager to accumalate whatever info I can and although still retain bullishness on the stock i do frankly follow the discussion board on moneycontrol and try not get influenced by the rumor mill.