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Tuesday, March 5, 2013

SOS Call on Ramky!

A valued reader send this SoS on Ramky:

Question: Pls reply soon sir on Ramky. It's falling everyday. Will it become like zylog & glodyne? Pls tell me should i exit or stay?


Ramky is not unlike other midcaps which are getting killed everyday on Indian bourses. Stocks are now falling now because they are bad stocks, but because the overall market scenario is very bearish for midcaps.

Fundamentally, there is nothing to worry about Ramky. The firm is available at paltry market cap of Rs 365 crores only, whereas its annual revenues are north of 3094 crores.

Dec,12 quarter for Ramky has been better than previous quarters, unlike most Midcaps, which are falling due to drop in revenues or profits. Ramky's revenue went up from 613 crores in prev quarter to 811 crores, which is a good 33% growth on QoQ basis.

Even if you consider 855 crores of debt on books, Interest payment of 43 crores on quarterly basis is very managable on this scale of operations.

Promoter stake has actually gone up to 67.76% now from two quarters ago. It is available at 70% discount to Book Value.

Now, back to your query, which is not really about Ramky, but probably you are losing sleep over Ramky! These are two different issues actually. If one cannot handle stress and is losing sleep over his investments, pls reduce investment to the point that you actually become carefree. That's the secret of staying in market for long and beating the market crooks in their own game :)
Hope this helps.

1 comment:

  1. thank you very much sir for helping me so quickly , yes sir you were right about the real thing that troubled me.



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