is it safe to invest in ivrcl and reliane indus infra

[sugeeskumari]

i am planning to invest in IVRCL AND RELIANCE INDUSTRIAL INFRA on a long term basis (one year). could anybody can guide me on this.

Sugeesh.P

 

[Avadhoot Nasikkar]

i am planning to invest in IVRCL AND RELIANCE INDUSTRIAL INFRA on a long term basis (one year). could anybody can guide me on this.

Sugeesh.P

RIIL:
First you shall have to understand that RIIL is punters' stock and not a fundamental pick. In past too it rallied and declined indiscriminately. When it would rise or fall, investor could not enter/ or exit it due to upper/or lower circuits. In capital market parlance, they call it circuit-circuit stock- when it is rising you can't buy it and when it is falling you can't exit it.

If you look at its net profit, it is just stagnate since 2007.FII holding is razor thin. stock is presently trading at one/sixth of its 2007 peak and even at this price it is price-to earnings multiple is around 35.
positive thing about this company is debt-free.
Morale is, only long term patient investor who does not mind taking risks should only think of giving it a try.
And in case of gains, it shall be technical one and not fundamental one.