RICH current Market Price ?

panuradha · 1 RICH current Market Price ? Sun Jul 03, 2011 7:37 pm

panuradha

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what will be the RICH market price at this moment to buy shares.? any good ideas.

Marketinvest · 2 Re: RICH current Market Price ? Sun Jul 03, 2011 7:41 pm

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According to my view it should reach 15 soon

ssuni · 3 Re: RICH current Market Price ? Sun Jul 03, 2011 7:50 pm

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Marketinvest wrote:According to my view it should reach 15 soon

Can u tel us how did u calculate it ?

Marketinvest · 4 Re: RICH current Market Price ? Sun Jul 03, 2011 7:57 pm

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Its not any calculation but my logics say so

nkalansu · 5 Re: RICH current Market Price ? Sun Jul 03, 2011 8:32 pm

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ssuni wrote:

Marketinvest wrote:According to my view it should reach 15 soon

Can u tel us how did u calculate it ?

The EPS of RICH for the last financial year is Rs. 0.87. So if you take a PE ratio of 15 as a reference PE then you could arrive at a fair price of Rs. 13/= (0.87 X 15).

If you consider a more optimistic valuation considering the diversified sector (most of the other companies like JKH, Aitken Spence,Carsons, Ceylon Theaters in the sector have PEs of above 20) considering a PE of 20 as reference PE will do no harm for the calculation. So RICH price will be Rs. 17.40 (0.87 X 20).

Currently RICH is trading at a PE of 13.67 (Rs. 11.90 / 0.87)

Last edited by nkalansu on Sun Jul 03, 2011 8:34 pm; edited 2 times in total (Reason for editing : spelling mistakes)

panuradha · 6 Re: RICH current Market Price ? Sun Jul 03, 2011 8:38 pm

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Well understand.
thanks Bro.. (nkalansu)

so last week RICH market values is more attractive to buy.
Iam planing to buy for 11.90 - 12.00 range.

ur comments on regard this.

mark · 7 Re: RICH current Market Price ? Sun Jul 03, 2011 8:46 pm

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Marketinvest wrote:Its not any calculation but my logics say so

what is the logic brother Question

ssuni · 8 Re: RICH current Market Price ? Sun Jul 03, 2011 8:53 pm

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nkalansu wrote:

Currently RICH is trading at a PE of 13.67 (Rs. 11.90 / 0.87)

thanks
Is this "PE of 13.67" bcause of the downtrend of CSE?

nkalansu · 9 Re: RICH current Market Price ? Sun Jul 03, 2011 8:55 pm

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panuradha wrote:Well understand.
thanks Bro.. (nkalansu)

so last week RICH market values is more attractive to buy.
Iam planing to buy for 11.90 - 12.00 range.

ur comments on regard this.

Well the current price is good to buy. However consider the investment as a long term investment and not to make quick bucks. The only concern I have with RICH is, its Price to Book ratio (PBR) is on the higher side comparing with other companies in the sector. However ROE is very good which is more than 30%. So with time PBR will gradually decline.

So consider it as a long term investment.

Disclosure : I hold RICH and intends to increase my holding.

Last edited by nkalansu on Sun Jul 03, 2011 8:58 pm; edited 1 time in total

nkalansu · 10 Re: RICH current Market Price ? Sun Jul 03, 2011 8:56 pm

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ssuni wrote:

nkalansu wrote:

Currently RICH is trading at a PE of 13.67 (Rs. 11.90 / 0.87)

thanks
Is this "PE of 13.67" bcause of the downtrend of CSE?

I think so. Share is valuable than that.

Disclosure : I hold RICH and intends to increase more.

Marketinvest · 11 Re: RICH current Market Price ? Sun Jul 03, 2011 9:08 pm

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Not only that they have a very good long term plan and we cannot basically depend on ratios. Our market most of the time doesnt play that way. So this share hax a very good value. Great to collect now

dragz · 12 Re: RICH current Market Price ? Mon Jul 04, 2011 5:04 am

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Marketinvest wrote:According to my view it should reach 15 soon

"Soon" is within a few months, right?

Investor99 · 13 Re: RICH current Market Price ? Mon Jul 04, 2011 10:50 am

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Hi Marketinvest its misleading to say "soon" it would be better to use words like short term medium term or long term.

In my opinion RICH is one of the undervalued share’s at the current price levels in the stock market and should be a medium to long term investment.

This is not a buy/sell/hold recommendation please do your analysis before investing.

ShareShares · 14 Re: RICH current Market Price ? Mon Jul 04, 2011 8:13 pm

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These days overall all shares are at bargain prices. What ever the share taken on an individual basis all stocks appear to be trading at fairly low values. It is not possible to blame individual counters. With the overall recovery of share market all stocks would return to fair values. Corporate earnings reported in most of the businesses remains attractive.