Ferro Alloys and Power divisions of the company are already doing very well and posted very good results. Sugar division was dragging the company with negative results. With improved scenario for the sugar (already many sugar companies are started moving up)the company may post extraordinary results in the coming quarters. Hence one should not worry about the subdued share price movements and should accumulate during corrections. Soon the share price will flare up. ...

Dear excelajay,

Thanks for the detailed information. So dilution of equity is going to take place and there is reason for the downward movement of the share price. Thanks again.

Regards,
Thalabathi...

The Board of Rohit Ferro is meeting on 11.8.08 to allot shares on conversion of warrants to strategic non promotional investor group. The notice is silent on whether the conversion price is going to be determined on the Board meeting or it had been decided earlier. Please enlighten if any Boarder knows it. If the price is to be determined only on 11.8.08, then it is natural that the price of share in the market will be depressed by the allottees of the warrant so that they can get good price of conversion as the conversion price is linked to market price movements. In such a case we need not worry. Once the allotment is over, the stock price will flare up....

Despite market going up, Why Rohitferro is hitting 5% down circit? is there any bad news? Boarders please share the news if any.
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I think the market is bottomed out because negative news such as increase in oil price (oil price increased yesterday by $ 5) increase in inflation rate, terrorist strike etc. are being ignored and is inching up based on clobal cues and value picking. Any positive trigger such as increase in IIP numbers, smooth progress of financial reforms would certainly boost the market sentiment and bring the bulls into the ring....

Thanks Balu for posting the fantastic results of Rohit Ferro. If one assume a annualised EPS of around 50 based on the quarterly EPS 14, the share should attract a prices of atleast Rs. 300/- with a conservative P/E ratio of 6. Hence the share price may cross its recent high of around Rs. 194 easily in the short term. Once the company is shifted to 'normal' section from 'trade for trade' section, I think this will explode to give superlative returns.
Regards,
Thalabathi. ...

Dear saniel,
Yes indeed. The results are fantastic. Despite drop in sales from 343.70 to 290.48 cr. from the preceeding quarter (March 2008), the company posted a net profit of Rs. 126.91cr. showing only a marginal decline of Rs. 2.50 cr. from the np of previous quarter. This has been achieved despite provision of tax of Rs. 37. 05 cr. against Rs. 24.24 crore. The EPS for the current quarter is around 16 per share of face value of Rs. 2/- each. Adopting a conservative EPS of around Rs. 50/- per share, the share should be quoted at Rs. 500/- with a conservative P/E ratio of 10. Besides, the comapny has bagged a BOT project for Hydrabad Metro Rail Project. This should improve its profitability in the long run. Currently, the Ferro Alloys and Power Divisions of the company are doing exceeingly well and posting excellent results. As per the Annual report of the company, the Directors are confident of achiving very good results in the current year also. Hence very good days are ahead for the stock of the company and I consider this scrip is very good for accumulation at current price to reap in excellent profits.
Regards,
Thalabathi...

Hi Friends, The warrats convert to shares at the prevailing market rae. There s no conversion ratio or any such thing. I dont see any reason for the dip except the non clarity from the government on the dtuties on ore which could result in demand depression. But this is too far fetched a factor for ferro alloys and this is just a knee jerk reaction. Finally fundamentals will prevail and a valuation of Rs 250-Rs300 is in the offing once the next quarter results are out. cheers Guest...

The warrants have been issued in November 2007. The current board meeting is being held to just convert the share warrants into equity shares. Refer below to last year\\`s Announcement Rohit Ferro Tech Ltd has informed BSE that the Board of Directors of the Company at its meeting held on November 23, 2007, after receiving in-principal approval from Stock Exchanges and approval of the members of the Company at the Extra Ordinary General Meeting held on October 09, 2007, has allotted 80,00,000 (Eighty Lacs) Convertible Warrants at a price of Rs 43/- each, which are convertible into equity number of Equity shares of Rs 10/- each at a premium of Rs 33/- within a period of 18 months, on preferential basis to the Promoter and Strategic Investors belonging to Non-promoter group as below: Promoter: Mr. Suresh Kumar Patni - 600,000 No of Warrants Mrs. Sarita Patni - 600,000 No of Warrants Mr. Rothi Patni - 600,000 No of Warrants Mr. Ankit Patni - 600,000 No of Warrants Non-Promoters: Kampani Finance Ltd - 2,375,000 No of Warrants Foster Capital Ventures Ltd - 2,375,000 No of Warrants Vytilla Steels Pvt Ltd - 500,000 No of Warrants Himagri Tradecomm Pvt Ltd - 150,000 No of Warrants Preview Commerce Pvt Ltd - 100,000 No of Warrants Shrivardhman Milk Dairy Pvt Ltd - 100,000 No of Warrants ...

Dear thalabathi, Good Morning..! Your observations are quite true..! All the Best..! With thanks, -sbalu...

absolutely......This stock will be one of the best performing stocks in the coming years.With such growth,Consistency and diversifaction,It issurely one of the bestbets fundamentaly.And also with th recent order it won with maytas infra worth 9000 cr..it is set to breach its previous high.One of the most cheapest stock available at a p/e of less than 6..... Its a steal guys saniel ...