From a couple of days KS Oil stock is in news as there have been talks about the company willing to sell its windmills or wind projects because they are facing a huge cash crunch. There are also rumours of promoters completely exiting from their stake.
The majority of stake was pledged and these bumps suggest that the company is getting sold. Some days back we saw similar trend in GTL. When the deals does not happen in a transparent fashion promoters always tries to overprice there stock and salvage the money as much as they can.
In these kinds of stocks a bump sale will be coming from time to time until the full stake is sold. Though the stock has correct around 75-80 per cent so there is definitely a technical bump up in the stock. Some days back stocks like IVRCL and in GTL similar thing happened. A trader needs to be careful while they are playing in these counters.
Presently the Company’s 12 month EPS is around 4.42 rupees per share (FY 11) the stock’s P/E ratio (price-to-earnings) is around 2.74. The book value of the company is rupees 32.51 per share. With the current value the stock price-to-book value is 0.37. The dividend yield is 1.48 per cent.
On 12 September 2011 Goldman Sachs Investments Mauritius I ltd. has bought 2,146,201 shares of KS Oils @ rupees 10.92 on the NSE. Yesterday the share price closed at rupees 12 .13 up rupees 1.10, 9.87 per cent up from its previous close of Rs 11.
Bell The Bull says investors should invest in the stock after proper research