There are many factors which affect the price of a stock. In the long run, fundamental are the key. DP WIRES is fundamentally strong company. It has performed well showing growth in both top and bottom line. The stock is trading at a PE of around 20. Its peer Bharat wire is trading at PE of 250. Bharat wire has a smaller top and bottom line as compared to DP. Its installed capacity is also lesser than DP. DP has a 28000 MT installed capacity against Bharat wires 12000 MT.
Considering this the DP is available at a very cheap rate.
On what basis, company is asking premium of Rs.35/-. Loss making company since last 5 years. High Debt. Single client...SEBI should review such issues so that retail investors are not cheated. BIG AVOID.. Will rule below par value in few months...
1.Posted Loss in q1 fy18 2.Depends on travel gear and small leather products of TOMMY HILFIGER for more than 90% Revenue.( All eggs are in one basket) 3.People in our Country are Price conscious. so the segment to which Tommy can reach is Very Miniscule. 4. we have lot of counterfiet Problems in india. 5.Peer safari Industries is having better pe ( Post Dilution) 6.Peer is having better profit margin.
I feel this should be avoided. Lets see what Dileep sir''s take on it