UPDATE ON KALINDEE RAIL NIRMAN (CMP Rs 152):-
Previous article:- http://tanmaygopal.blogspot.com/2009/05/kalindee-rail-nirman-cmp-rs-150-buy.html
The stock did reach our target in budget euphoria but now excessive speculation and disappointment has crashed it towards Rs 140 once again. It becomes a value buy once again with a strong catalyst in the form of L&T. Once again the stock can reach near Rs 190-200 levels in 3-4 months period and one can buy for investment around Rs 150-155. The stock hit 9 down freeze after the budget and now has started trading freely last 3 sessions.
Larsen & Toubro holds 14% stake in this company and with management of L&T saying they are going to increase investment in Railway sector, this company may get some attention.
Excerpt from Interview of Y M Deosthalee, CFO, L&T talking to CNBC:-
Q: Just to supplement it, would you be looking at buying Kalindee? L&T Capital already has I think 14%?
A: Yes, we have some stake, about 14%. There are various options. Acquisition is not the only option, one can have strategic alliance. One can look at working together. So, there are all options and we will examine. At this point in time, we have not finalized our thinking on whether we are going to acquire or takeover. I don’t think anybody can make such statements. Read full interview:- http://www.moneycontrol.com/india/news/results-boardroom/beefingcapabilitiespower-railways-lt-/406717/0