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
Price	283.60	283.50	260.00	295.05
Net Change	-56.55	-56.45	-32.95	-68.00
%Change	-19.94	-19.91	-12.67	-23.05

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.

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

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Ramky Infra - Avoid

Investors with medium-term perspective can consider buying the stock of Ramky Infrastructure (Rs 281.9), an infrastructure constructor and developer.

From its all-time high of Rs 460, registered in early October 2010, the stock had been on a medium-term downtrend until it found support around Rs 242 in early February 2011. The stock changed its direction thereafter and started consolidating sideways in a broad range between Rs 242 and Rs 310.

Key support at Rs 242 provided base during mid-March and the stock bounced up triggered by positive divergence in weekly relative strength index.

Recently, the stock took support around Rs 255 and started to move higher, with in the sideways range. On May 27, the stock jumped 6 per cent, breaching its 21- and 50-day moving average, showing initial bullish signals. We notice that there is an increase in volumes in past two trading sessions.

The daily relative strength index is hovering around 58 and is on the brink of entering in to the bullish zone, whereas the weekly RSI has re-entered in the neutral region from the bearish zone. The daily moving average convergence-divergence indicator has signalled a buy and is moving in line with the stock price. We also see the daily price rate of change indicator entering in to the positive territory indicating buying interest.

Our medium-term outlook in the stock is bullish. We believe that Ramky Infrastructure has the potential of trending higher and reaching our medium-term price target of Rs 330 following a small pause or sideways movement around Rs 310. Investors with medium-term perspective can consider buying the stock while maintaining stop-loss at Rs 258.

The following returns table gives the price movements

Particulars	Week	1M	3M	6M	1Y	2Y	3Y	5Y
Price	281.30	287.75	290.65	307.00
Net Change	3.05	-3.40	-6.30	-22.65
%Change	1.08	-1.18	-2.17	-7.38

Our Recommendation - for Ramky and Infra stocks Avoid

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor