Karuturi Global - Is it a good buy ?

avi10

New Member
#1
Hi,

Does anybody know the status of Karuturi Global ? Its share price had gone to around Rs 30.

Since then it has seen a steady decline. Currently it is trading at Rs 14.

I bought a few shares of this company at Rs 21. I am wondering what to do with them - sell or hold ?

Anyone who has some insights on this company ?

Thanks
 

yusi

Well-Known Member
#2
Folks who have invested in KGL are buying the "landlords of the future" theme based on the land allotted to them in Ethiopia and the agricultural plans there. So it a multi-bagger hope but a long haul with large land development costs, current geopolitical risks, and increasing local resentment at the land allotment.

In 2008, when KGL had fallen sub Rs 10, they had raised capital at Rs 12 per share. The company float increased dramatically and my view is that it is this supply that is being seen now. The rise beyond Rs 18 was plain markup.

If you are a long term investor, 12-14 should be the accumulation range. It is possible given the exits in the 28+ range, that large players may continue to exit down to 10 seeing the upheavals in the Middle East. Since the scrip is already at 14, it makes little sense to exit. My suggestion would be hold but be ready for the long haul.

Or even better, play the short term rise/fall if you are comfortable doing so. This is how KGL has been my most profitable scrip over the last two years.
 
#3
since it is agri based and floriculture company, it will take long time more than 3 years to reap the benifits. until that having hopes... is not worth... on the top, promotors rigged the scrip along with ruchi soya and KS oils, all these scrips are hammered recently... that is why karuturi is nose dived to 14 levels. though ramakrishna the promotor is ambitious outlook is brim. success in ethiopia is not a joke... infrastructure is so bad.... no idea how they will succeed.

ideally get out from the scrip and invest in GVK power or ispat. which will give you good returns (min 50%) in 6 to 12 months... good luck....

uday
 
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