Suzlon Stock Split - Buy Now or After?

man4urheart

Well-known member
#1
Suzlon is having a split decision on 06-Dec-2007. We should wait till split and should buy after the split? Since there would be more shares after the split and price will go down in short term due to increase in liquidity of share?
 

Alchemist

Administrator
Staff member
#2
If you want to buy, buy at its 50 day EMA (exponential moving average).

The stock is nicely trending upward and is unlikely to go below its 50 day EMA...which is currently at Rs 1750.

The EMA is rising and it is not possible to predict at what level the price will touch the 50 day EMA. (My guess is Rs 1850).
 
#5
Does Suzlon look attractive now?

Suzlon after the stock split: does it look any more attractive now? or should we wait for some more correction after the carnage today?

To me, it looks attractive:

reasons:

EPS: 35
P/E: 10.34
Price: 366

source of this data is moneycontrol.
 
#6
On Rediff

PE ratio 257.61 18/01/08
EPS (Rs) 7.38 Mar, 07

In Jun 07 and Sep 07, together it did an eps of 3.09 ... Thats lower than last years .. i dont know which data is correct ..

Suzlon p/e of 10 definitely not correct .. i guess moneycontrol didnt divide the eps by 5 post split ..
 

Alchemist

Administrator
Staff member
#7
Suzlon after the stock split: does it look any more attractive now? or should we wait for some more correction after the carnage today?

To me, it looks attractive:

reasons:

EPS: 35
P/E: 10.34
Price: 366

source of this data is moneycontrol.
On Rediff

PE ratio 257.61 18/01/08
EPS (Rs) 7.38 Mar, 07

In Jun 07 and Sep 07, together it did an eps of 3.09 ... Thats lower than last years .. i dont know which data is correct ..

Suzlon p/e of 10 definitely not correct .. i guess moneycontrol didnt divide the eps by 5 post split ..
Divide the market capitalization by net profit figure and you will get the exact PE ratio.

Ranji is correct....the eps figure is pre-split.

Last four quarters profit = Rs 1059 crore.

Market capitalization = Rs 54700 crore.

PE ratio is more than 50.
 
#8
Divide the market capitalization by net profit figure and you will get the exact PE ratio.

Ranji is correct....the eps figure is pre-split.

Last four quarters profit = Rs 1059 crore.

Market capitalization = Rs 54700 crore.

PE ratio is more than 50.

Where can we get the latest data from? Is there any site that gives you the latest data? It seems MoneyControl are not maintaining their DataBase properly.:rolleyes: This is bad as this might affect someone's investment decision.

If I want to do the calculations manually, what are the important things that I need to know before I move ahead with the calculations?
 

Alchemist

Administrator
Staff member
#9
Where can we get the latest data from? Is there any site that gives you the latest data? It seems MoneyControl are not maintaining their DataBase properly.:rolleyes: This is bad as this might affect someone's investment decision.

If I want to do the calculations manually, what are the important things that I need to know before I move ahead with the calculations?
I don't know any 100% accurate source.

I usually use the company's official site for "number of shares outstanding" data.

Multiple that figure by share price to get Market Value.

Market value (market capitalization) figures of moneycontrol.com are usually correct.

use company's site for latest profit figures.

using eps can give incorrect results.

historical eps is never adjusted for stock splits, bonuses, equity dilution etc.
 
#10
Which value to take as the no. of outstanding shares?

I usually use the company's official site for "number of shares outstanding" data.

Multiple that figure by share price to get Market Value.

Market value (market capitalization) figures of moneycontrol.com are usually correct.

use company's site for latest profit figures.
I went to the site of some companies to see the shareholding pattern. Could not quite figure out though, which figure to take. :( There are a number of values like pattern for promoters, public holding, custodians etc.

Should I take the public holding only or the total of all the holdings?
 
#14
Hi, I believe tha calculations are a bit easier than we think aparently,

Let us assume,

Market Capitalization = MTC
Total no of Shares = TNS
Current Market Price = CMP
Earning Per Share ( Trailing Twelve Months ) = EPS
Net Profit = NTP
Price to Earnings Multiple = P/E

So, MTC = TNS * CMP.......................(1)

EPS = NTP / TNS
or NTP = EPS * TNS...........................(2)


Now, P/E = MTC / NTP

Using the value of MTC and NTP from eqn 1 and 2, we have

P/E= (TNS * CMP) / (EPS * TNS)
canceling TNS from both we have,

P/E = CMP/ EPS

So to calculate the proper P/E we just need the Current market Price and EPS (TTM).
 

man4urheart

Well-known member
#15

Suzlon is currenlty exhibiting a very important pattern. "Descending traingle, Which has serious BEARISH implication if breakout happens.

It should be closely watched for breakout.



Feedback is appreciated!
 
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ams

New member
#17
I hold suzlon @ 297. Should I exit or average out ?

Also should i average now @ 257 levels or wait for 240 levels ?

plz. reply soon...
 

man4urheart

Well-known member
#18
Don't forget Something what goes down will also come up later.....Inverse is also true...:)

Now since you have bought it, there is nothing fundamentally wrong with company, I suggest holding.

As per technical science 240 is definitely due and looks acheivable.

It is your money decision is yours.......

I hope you don't need this money for a year or more what you are investing in market....:)
 
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man4urheart

Well-known member
#19
This counter is having a relief rally with heavy volumes. Watch it in coming days.

Fibonacci's up targets are shown



Resistance: 50 Day EMA= 291
Resistance: 200 EMA = 311
 
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