Call Update: Mcnally Bharat (MBECL)

If you see the P/E and P/BV of MBECL, it is a bit high; valuation wise it should be somewhere at 230-240. The reason for commanding earlier premium price was its lucrative future, with very good orders and acquisition story. Somehow the investors TEMPORARILY lost faith in its long term story and deserted it and so the price fell..some stock pledging story is doing rounds, but the amount is small and this really should not bother investors.

 

Now coming to the charts, in 2010, MBECL has in each of the months of May, June, July, August and September, has touched 310. So the spurt was there..to fly higher. it only missed the upwards spurt in October.

 

But I still believe in the company's future...it should eventually do very well for itself. At present, valuations have caught up because suddenly, the growth / acquisition story has vanished and therefore MBECL is in a downtrend. It has strong support at 245/213/205/173. I do not think it needs to touch the 213 support line.

 

And somehow it is my belief that MBECL will rise from the ashes once again..belief can take you a long way my friend and therefore, if you own MBECL at a higher price, buy some more at the support prices I indicated to bring down your average owning price.

 

And I have already mentioned earlier: "you will need to be patient with MBECL"

On Fri, Oct 29, 2010 at 8:44 PM, Dhrubo <kdhrubo@yahoo.co.in> wrote:

Learning from you, MBE now 255 range.If the results are not in line with expectation 237-240 not far?

 

--- On Fri, 15/10/10, Dhrubo <kdhrubo@yahoo.co.in> wrote: From: Dhrubo <kdhrubo@yahoo.co.in> Subject: Long term Buy: Mcnally Bharat (MBECL) To: "powerfulpicks" <powerfulpicks@gmail.com> Date: Friday, 15 October, 2010, 7:11 PM Thought of pitching in with my limited know-how. I have been keeping a close eye on this stock for 4 months now. It tested a failed breakout this week. I think the buy range would be 270-275. On further dips we can add at 255-260. This quarter results will be crucial. The company has order book of around 4800 crores and aims to double revenue in 2011. Its a Kolkata based age cold company with good management. I rate it higher than RIIL. The fundamentals speak. Now with your advise, I have the confidence to pick this up. Thanks From: powerfulpicks <powerfulpicks@gmail.com> To: powerfulpicks@yahoogroups.co.in Sent: Tue, 12 October, 2010 1:48:46 PM Subject: [pp] [powerfulpicks] Long term Buy: Mcnally Bharat (MBECL) Long term buy: This script has been consolidating for over 6 months now, but I think that phase is getting over now. It has good revenue visiblity and Q3 and Q4 will be much better than Q1 and Q2, in terms of top line and bottom line and EPS. Yearly performance for last 5 years has been consistent.   Buy McNally Bharat (NSE: MBECL, BSE: 532629) at 283 for a 1 year target of 360 (+27%). But you will need to be patient.