Vivek – Kaveri seems to be making a base between 400-500. Make take a little longer time due to weak market conditions. There was a lot of selling happened by IDFC and promoters in range of 800-1000 making chart patterns weak. Add to it below expectation results and not a good forecast for rest of year. It remains to be seen whether IDFC has fully exited the counter or not by now. The change of guard at IDFC has spelt some bad times for this stock.
Anyways going through their quarterly presentation and annual report gives me enough confidence that the stock will bounce back sooner than most people expect it to. Its in a very niche business with high profit margins and huge entry barriers. The cash on books gives a comfort as well. I guess promoter’s haven’t done anything wrong. They are just undecided and being cautious considering the outlook in distributing the cash to shareholders. Give business the time. Time is a wonderful friend of good business and a enemy for a bad business.
In case I will have spare cash in future I will avg down my positions – currently my avg is 783. This stock has given me huge profits thrice. I have entered at near around 800 and sold at 950-1000 thrice in my trading portfolio before finally deciding to invest as core stock when it again came down.
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