Thursday, November 17, 2005

Very interesting - Teledata Informatics Ltd.

- The company has an NCA of 30.43 and is available for 22 rupees. Would you go for it?

- The company is virtually debt free. Would you go for it?

- It has an additional investment of 14.05 rupees per share. Would you now go for it?

- The company has 19.80 rupees per share in cash. How about now?

- Profits are 20.70 rupees per share. Now?

- It's at it's 52 week low of 22 rupees. The 52 week high was 62 rupees.

Would I buy? I wouldn't. Being "suspicious", I found out that the promoter stake is only 7% in the company. Secondly, the company has been pointed out by it's auditors on more than one occassion on the irregularities in accounting (irregularities is my euphymism for misleading practices). Thirdly, look at the tax charge. It's 0.04% of the PAT. I compared it with Infosys which pays 14.5% tax charge. A zero tax charge is impossible.

I would put the management of the company under the highly questionable banner and wouldn't recommend a buy or hold.

3 Comments:

Blogger Prasanth said...

It is now quoting at about 26. My cousin, who is a die hard technical analysis supporter told me that Teledata is considered as a "hot" stock in his circles - he has a big group of friends who trade in substantial sums of money. He told me that they are expecting the stock to go up to 150 !!.

Also that some big shot doctor in Bangalore (my cousin is in Bangalore) owns enough stock to qualify for a directorship.

11:06 AM  
Blogger Shankar said...

Prashant, we need to discuss the Teledata Informatics Stock. It's still at 25 rupees.

u r calling on a 6 times profit. Am still not sure .. can you check the company. It's in Madras. No.2 AB, Gee Gee Emerald 151, Village Road. Ask for the annual report and study.

If you can arrive at a good conclusion then some monies can be diverted. But I am still not sure of management. They have only 7% shares

Rgds, Shankar
small2big.blogspot.com

12:40 AM  
Blogger Feng Guo said...

Hong Xiaowan's Studio

Add:Taidong Taizhou Jiangsu China
Zip:225300
Tel:+86-523-2092801
Fax:+86-523-2092802

1:39 PM  

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