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Keywords : investment steel jindal
Activity: Question posted: 08 15 2009 04:21:47 +0000, 2 answers, 514 views, last activity 07 06 2010 20:18:08 +0000
 
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A case for study.

Jindal Steel and power trades at around 3100. It has an equity of 15Cr and a profit of 3007Cr. It is giving a bonus of 5 shares to every one share shortly. Gives a dividend of 2.5Rs/share.

After bonus, equity would rise to 90Cr and price would drop to Rs 500 (As per above rate). New structure would be as: Profit of 3007Cr on an equity of 90Cr i.e. an earning of 33per share and a market rate of Rs. 500.

Is it worth investing now or after bonus or just ignore? This equity investment and the group is worth looking at since it is having both infrastructure industries (Steel and power) in its stride.

 
 Top Answer :
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Sir I am only a student and have no practical experience in investing.

Normally after a bonus issue the share price tend to rise and with the government interested in construction and infrastructure, I think it is fine to invest in steel and power.

Regarding jindal steel and power,all I know it is one of the major steel producers in india and there are plans for capex spending. Since I don’t have information regarding projected statements and share price trends ( and here given present dps vs projected eps + exp fall by rs 100) I am not able to give an answer.

But, I will refer this to some experts in this field from my contacts .



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  Answered by     Joshi Vinayaka Dattatraya Rao, Freelancer, Freelancer  | 08 16 2009 02:49:16 +0000
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I have already invested. I do invest given every opportunity because it has paid well to investers,traders.

 
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