sterling international enterprises ltd at rs
1.84 it is listed only on bse
& it is 1 paid up(face value rs
1) with book value of rs
80(consolidated) having huge margin of safety. it looks good to me at current price of just 1.84 as risk-reward ratio is extremely favourable with almost no downside risk & huge upside potential. its yearly eps
is 1.60 & its trading at below 2 pe multiple whereas industry avg
pe multiple is 10 plus so highly undervalued. its into oil
exploration business owning seepco in lagos-nigeria. LTS
fund & Albula fund having huge stake as their GDR converted into equity shares at rs
4 in last year june 2015 so current price is 100 percent discount to these two big holders price so it is great opportunity in my opinion to grab this stock as even with very very conservative pe multiple of just 3 with eps
1.60 it can reach at rs
4.80 which is more than 100 percent returns from current price.
Note: I am aware of the not so good reputation of the promoter & current issues in nigeria regarding attacks from niger delta avengers but, i believe that at this price risk is very very minimal or no risk as these issues will be solved in near future as i read latest news which says this avenger group will stop attacking on oil
pipelines as they already met with their oil
minister recently & negotiations are already in process as it pollutes their own country .
Disclaimer : The stock picks are purely a view point of individual and there is no guarantee on the returns. Hence all the visitors are requested to apply their prudence and consult their financial adviser before acting on any of the recommendations by this any of its mode. I do not take responsibility of any losses incurred (if any) by acting on the recommendations.