Dear Investors,
On Thursday we recommended our PAID MEMBERS to BUY GARDEN SILK MILLs at 86 levels achieved 95 levels on FRIDAY..Here are FEW REASON why we recommended this SCRIP to OUR PAID MEMBERS :
(1) GSML is now an integrated player in the polyester chain from chips to POY to processed yarn to printed fabrics.
(2) The company is considered a market leader in saris and dress materials.
(3) Its size & volume has quadrupled in the last 5 years, which is very rare.
(4) Despite this huge expansion, its equity remains at Rs.38.29 cr. whereas Reserve & Surplus have skyrocketed to Rs.450 cr. and will grow further in coming years. Its net profit stood at Rs.63 cr. last year.
(5) The book value of its share has shot upto Rs.130 against which the CMP of Rs.85 discounts 60%. Since most IPOs are priced at 3-4 times of book value, the GSML stock is grossly underpriced.
(6) Its gross assets value is as high as Rs.1698 cr. as against its net worth of Rs.490 cr. This is because the company has made huge expansions from borrowed funds or Rs.1223 cr. and through internal accruals.
(7) Sales have risen to Rs.2500 cr. and expected to cross Rs.3000 cr. this year. PBDIT stands at Rs.301 cr.
(8) Dividend although not generous is moderate at 18%.
(9) EPS is as high as Rs.16.50, which discounts its FY11 estimated earning by 4 times as against the industry average of over 10
Friday our RECOMMENDED ORIENT CERAMICS moved up smartly but ended at buying levels due to SELL OFF in the markets..neways we are BULLISH on both these and would see new highs in days to come......
IMPORTANT : ALL DEPOSITS made in our BANK ACCOUNT yesterday and today will be confirmed during this weekend..We thanks you all for your HUGE RESPONSE to "SOKHI FREEDOM OFFER" over 90 investors have enrolled so far...REMEMBERS its Rs 4,400 for 12 months till 31st AUGUST 2010..rush ur mails to sokhitrading@gmail.com or click here...
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