Basantji, you are right, it had forex scare. However, as the events turned out, what had happened, as understood by me was this : The company was holding forex holdings ( proceeds out of fccb issue unutilised for a full period of more than a year ) in possibly US $.
With the depreciation of US $, the company incurred mark to market losses of Rs.24.03 crores on its actual balances held in US $ as was clarified by the company in its notice to BSE on 27.02.08. This is the loss due to appreciation of the Indian Rupee and not because of forex derivative.
Since the market price refused to react positively to the news of absence of forex derivative losses, probably, the company , once again, by its notice to BSE dt. 03.04.08 specifically has confirmed that the company does not hold any derivative exposure and does not have any mark to market losses as on that date. In fact, even the mark to market loss on 31.12.07 seems to have reduced to Rs.18.83 crores as on 31.03.08.
I agree with you that the stock is available at a reasonable value at the current market price of around 290. It seems that the market is disappointed with the absence of trail blazing growth in top and bottom line that this company was famous for in the last one year and that disappointment from growth seems to be worrying the market. However, the management is of proven calibre and sooner rather than later, the company would revisit the growth trajectory, so I believe.
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
IP Logged
