IFCI (Industrial Financial Cooperation Of India) is a momentum stock, it always touches highes when sensex goes up and goes down with sensex.
With new UPA govt in drivers seat, it is all set to zoom again to new highs. The reasons
1. It is going to get banking license.
2. There would be a stake sale.
Last time when stake sale was scheduled, it touched highs of 140 Rs. It is now quoting at 55 Rs. It has gone up from 15 Rs to 55 Rs over the current bull rally.
If you look at the fundamentals, it is quoting at PE of 8.97 as of today, industry average is 11.42. The source is trusted moneycontrol.com.
It is performing OK in the tough market condition which we witnessed in 2008 as given here.
If the company gets a banking license and stake sale talks gather some steam, a conservative estimate would be 100+ in 12 months. If not then it can again go back to lows of 30 or 40. It has very good potential upside with very less down side.
I recommend it to buy at 50 to 55 range, with buying on dips for sure shot 100% returns in a year or so.
Disclaimer: I have some stocks of IFCI at 15.6 INR. Do your own due diligence before buying any stocks.
With new UPA govt in drivers seat, it is all set to zoom again to new highs. The reasons
1. It is going to get banking license.
2. There would be a stake sale.
Last time when stake sale was scheduled, it touched highs of 140 Rs. It is now quoting at 55 Rs. It has gone up from 15 Rs to 55 Rs over the current bull rally.
If you look at the fundamentals, it is quoting at PE of 8.97 as of today, industry average is 11.42. The source is trusted moneycontrol.com.
It is performing OK in the tough market condition which we witnessed in 2008 as given here.
If the company gets a banking license and stake sale talks gather some steam, a conservative estimate would be 100+ in 12 months. If not then it can again go back to lows of 30 or 40. It has very good potential upside with very less down side.
I recommend it to buy at 50 to 55 range, with buying on dips for sure shot 100% returns in a year or so.
Disclaimer: I have some stocks of IFCI at 15.6 INR. Do your own due diligence before buying any stocks.
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