Updates : Read after considering Note below
1) We have got this Stock Wrong. ----- So Please read it that way
2) As of June 2012 our Average Price stands at Rs 18
3) I Intend to look at this stock only after a year so did not even sell at recent high @24
Lanco Infratech Strong Buy @ 23: Risk Reward Tilted in favour of the Buyer
Always Inspiring??? NEW ADS!!!!!!! Not so for the existing Shareholders But definitely for Potential Ones
It offers a Mispriced Bet hence i am Back.Those averse to Risk buy post 18th July 2011 when some more clarity emerges
Events Affecting fall in 2011The reason for the fall from Rs60-40 in early 2011 was primarily attributed to coal availability and merchant power prices.
The slip from 30-25 was when the market corrcted towards 5200 levels and the Griffin NEWS affected the price whereas many cos recovered 20-30% since the fall.
With Regard to Merchant Prices they should stabalise above 4rs and last quarters Rs4.5 by Lanco was encouraging.
With Today's announcemnt of defeciet in Monsoons, merchant tariffs are expected to stay firm.
Griffin Case of Rs16000 odd crs----------- In my view Case is weak esp from whatever i have heard read in the Indian and Australian Media.
Note: Griffin was Bankrupt Co and was bought from the authorities for a consideraition of about 900mn$
This is the Main and only worry in sight and do check the capcity added and to be added by the company from 2009-2014.
Its got a portfolio of close to 3000+MW and 4500MW under execution (details will be added after a while)
EXECUTION HAS BEEN GREAT OVER THE LAST FEW YEARS
U are sitting on Potential doubler, however people who can take risk -Its a strong Buy. It could very well go lower but Risk Reward is 75% for the Buyer
