State Trading Corporation

sunil_the_geminian · #21 27th December 2007, 03:47 PM

i also think its a pure operators game....

sunil_the_geminian · #22 27th December 2007, 03:56 PM

State Trading Corporation of India (STC) has been in the news for some time now. First there was the announcement of the proposed bonus issue; the share price scaled new highs. The Board announced that the bonus was postponed. Then on 31st October, the company declared a 1:1 bonus and all finally heaved a sigh of relief. The stock price of the company has been moving up and down like a yo-yo. From Rs.134 in March 2007, the share touched a new high of Rs.1736 on 19th November 2007 and it is currently quoted at Rs.998.

STC is an international trading house owned by the Government of India, which has a 91.02% stake. The company trades in almost all the countries of the world. Its areas of operations are exports from India, imports into India, domestic trading and market support operations. These include foodgrains, bullion, hydro-carbons, minerals, metals and fertilizers.

Though there has been a run-up on the share price, the financial performance of the company for the second quarter ended 30th September 2007 has not been good. For Q2 FY08, the company posted a sales of Rs.3,533.39 crore on which its total expenditure exceeded the sales at Rs.3538.39 crore. It was the other income of Rs.35.82 crore which helped it post a profit. On a q-on- basis, EBIDTA was lower by 5.20%, PBT was down 18.15% and net profit was down 38.70%. OPM was at a pathetic 0.87% while NPM was lower at 0.30%. A company which posts a turnover of over Rs.3,500, having profit margins less than even one percent, does not seem like a very good thing.

So why is the share price soaring? The low floating stock has made the share price highly speculative. Plus the constant, on now-off now bonus issue made the stock susceptible to wide fluctuations. Despite that, STC is a huge conglomerate and the basic fundamentals remain sound. You can book profits on the pre bonus shares and lower your investment cost.

visakk · #23 30th December 2007, 11:16 AM

Can any one suggest long term target of this stock..?
Some time back JNJ33 said 5 digits..? can it be true..?

jnj333 · #24 2nd January 2008, 04:53 PM

Hold , has the potential to cross 2000 in the short term.

naveendugar · #25 24th January 2008, 11:57 PM

Hi Jnj,

Again the same issue with this stock...it doesn't seem to cross the 1500 barrier and is agin down to 900...do you still feel this can reach your target of Rs,2000 in near future..

and also what is the bottom this stock will hit and do you think it is still good time to accumulate this stock and if yes at what level...

awaiting your urgent reply

naveen

LOTUS789 · #26 25th January 2008, 01:28 AM

Dear,
My broker is charging 1.service tax 2.sebi charges, 3.turnover charges 4.stamp duty,5 Sec.transaction tax in F&O segment. For buy and sell in same day, STT is being charged for selling side. My earlier broker does not charge sebi, stt stamp duty etc in fo segment. Can any help minded guide me .
2. can I know the daily margin % prescribed in NSE f&o segment stocks.I could not locate the website in this case.

jnj333 · #27 25th January 2008, 10:13 AM

Quote:

Originally Posted by naveendugar

Hi Jnj,

Again the same issue with this stock...it doesn't seem to cross the 1500 barrier and is agin down to 900...do you still feel this can reach your target of Rs,2000 in near future..

and also what is the bottom this stock will hit and do you think it is still good time to accumulate this stock and if yes at what level...

awaiting your urgent reply

naveen

Majority of Midcaps are been beaten down but volumes in this are not high, I still feel it can reach 2000 but now it may take 3-4 months, 800 could a good level to buy with the bonus record date coming next month which may be a good trigger for it to rise.

naveendugar · #28 25th January 2008, 06:17 PM

Thanks JNJ,

for your quick reply..looking forward to the bonus issue which is only hope for investors like me who are invested in this stock.

looking forward for more update from you...

naveen

gvgs98 · #29 26th January 2008, 07:09 AM

In my observation, I found that this stock is operated. The reason is that every day you could see a change in price about 5% +/-. But the volume is decreasing recently; it may be a sign of reversal. It’s just a wild guess as i am not aware of any fundamentals, or news, or TA about this stock.

Cheers
VG

jnj333 · #30 3rd March 2008, 08:12 PM

Bucked the trend with staying in green due to bonus annoucement. Fundamentals strong , potential to touch 1000 in short term. Earlier target on 2000 effective within 6-9 months.