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| Strong fundamentals, sentiments affected (95) 17-Feb-07 10:35 | Tracked by (13) |
| | Posted by:  KFactor on ( 17-Feb-07 10:35 ) | Rating  | | Price : BSE: 431.00 (20.50), NSE: 429.40 (20.45) | Dear himanshu2006, Peninsula Land (CMP Rs.429) is affected by the fears of overheating of the realty sector, and the cautionary signals from RBI & FinMin. I see the drop in valuation in the scrip as a temporary phase, and would impove when the company produces consistently strong performance results.
Peninsula Land has strong backing in asset base and ambitious management. They have strategies and are capable of delivering outperformer results. Their quarterly results are improving seen on a sequential basis.
However, the price is volatile with a bearish outlook, in the absence of clarity on the merger and share swap arrangements. The market has not understood what the promoters wish to do with assets in Dawn Mills and how it will roll out when the merger is implemented. The ratios already announced have not been explained, and that leaves investors with lack of clarity.
It will be advisable to wait before adding to commitments. The company must create confidence in the share swap ratio, and the sector must overcome the apprehensions attached to the possible bubble threat posed by weaker players.
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