Holding pipavav shipyard for longterm

#1
Dear all
I am totally new in share market.Kindly advice me is it good to hold pipavav shipyard for longterm investment,if not then which stock will be good for investment.
THANK YOU
 

talisman

Well-Known Member
#4
Well, watching from the experts' opinion on CNBC, few things were quite clear. First, stock is quite expensive compared to other jokers in the pack like SCI, ABG or Bharti shipyard. If you go by the market cap to book value ratio then, Pipavav seems unfairly expensive compared to established ones like Bharti or ABG shipyard.

The positive point going for the stock is its parentage. Punj Lloyd management holds almost 20% stake in the company and going by the track record of Punj, one can have slight faith in the stock. But, thats that. There is nothing else going for the stock because its earning will not start before FY11. Finally, its operations mainly caters to SEZ and Export Oriented docks and those things are very much subject to government rules and regulations.

Thats just an opinion. For long term investment there are several good ones. If you still feel strongly about this stock then its better to move to its parent, i.e; Punj Lloyd.

Rest Upto you. Thanks.