XL Telecom

Dear Friends,

Since year ending June 2002 until the present, the total income has grown more than 10 times and so has the net profit.

The company seems to follow a June year ending as the annual results for the past 5 years published on moneycontrol are year ending June.

Over the past 3 years, the sales and profit have grown in excess of 35% per annum.
The results for the quarter ending june 2007 have not been published yet.

I have the results for the previous 3 quarters. The total income comes to 386.58. Annualizing this, we get 515.44. Compared to total income of the previous year which was 410. 84, this comes to 25.46%
The net profit for the previous 3 quarters comes to 15.53. Annualizing this, we get 20.71 crores. Compared to net profit of previous year which was 10.67, this comes to a growth of 94.06%.

A look at the quarterly figures shows us that there has been consistent growth even quarter on quarter.
Hence the above annualizing of the total income and net profit can be considered a conservative estimate.

This means that we are potentially looking at an increase of 100% year on year.

I believe this stock XL Telecom also has the capacity to return more than double your investment.

Technically, the stock is in a short term down trend and should find support at 118. If it falls further, then it is a golden opportunity to buy low.

At this point, I would only recommend an investment with a long term point of view. Buy not more than half of the quantity you wish to hold.

On the upside, crucial levels are 132 and 144. A close above 132 is positive and you can add to the stock then. On a close above 132, the short term target would be 144. A close above 144 gives us targets of 156 and 216.

Fundamentally also, as discussed above, the stock has the potential to more than double from current levels. A target in excess of its all time high of 216 is achievable in the long term

Success,
Yasir

XL Telecom has taken support around the 50 day moving average and has moved up since then. Yesterday, July 24th saw a bullish engulfing bar being formed and today the price has taken a cue from yesterday's price action and moved further up.
Today's closing is at the earlier mentioned level of 132. Tomorow if the stocks trades above 132, a short term position can be taken for the target of 139 / 144. Trade with a stop loss of 125.

Success,
Yasir

Hi Yasir,

A humble request, can you use one thread for all the scrip to provide ur analysis. It will be in track and threads wont be scattered here and there. You can consider it.

Raj

Dear Raj,

Thanks for the suggestion. I did consider this earlier but found that having a separate thread for each scrip would be easier for me to update my posts.
With the original idea in mind, i had created the thread Share Success. I will post all my calls there.

Peace,
Yasir

XL Telecom touched 138 (1 rupee short of my 1st target) and fell back. Investors can add below 130. Support of 125 still holds good. Those invested can hold for 138 / 144. On a closing above 145, add more for target of 200.

Success,
Yasir.