Tuesday, August 23, 2011

Ramky Infra - Sell

The stocks of Ramky Infra, took a severe battering in today’s trading, as all these Hyderabad-based entities are now under CBI scanner.

All are Hyderabad based listed entities now under CBI scanner.

These stocks in particular were apparently reacting to the recent investigations initiated by the CBI into companies owned or promoted by Mr Y.S. Jagan Mohan Reddy, Member of Parliament, and president of YSR Congress Party and son of late Chief Minister of Andhra Pradesh, Rajasekhara Reddy.

Following the Andhra Pradesh High Court directive, the CBI, is investigating into issues relating to transactions of corporates with which Mr Reddy and his firms, and the investments they had made to secure land to set up special economic zones, etc.

The shares of Ramky Infrastructure closed the day's trade at Rs 227.05 down Rs 42.95 against previous day's closing trade of Rs 270. The company's 52-week high and low was Rs. 460 and Rs 242.70 respectively

The scrip has been underperforming in line with the infrastructure space. The following information gives information the returns in the last 6 months.

Particular Week 1M 3M 6M


Net Change-56.55-56.45-32.95-68.00


Our Recommendation :

We recommend investors to get out of the stock on any spike and long term investors can considering buying the share if it falls below its book value of Rs. 180 for a target price of 250 in next 6-9 months.

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