Hameed
31.05.2005

MARKET BUZZ:
(May not be useful for day-traders.)

Ansal Properties-Curtain Call

Amongst all the stocks recommended by us in the past twelve months, it is the stock of Ansal Properties which has had a dream run. There were few takers for this counter at Rs 19 in April 2004. Today, adjusted for the Bonus in the ratio of 1:2, the stock has moved up 15 times in one years. The rumour now runs, that the management will place about 15 per cent of its equity with a private equity fund at Rs 240 per share in a fortnight from now.

Whether this bit of information is true or untrue, the stock has moved up far beyond any intrinsic value or fundamentals and seems firmly in the grip of a coterie that was last seen carrying out a run-up in Tech stocks in the Year 2000.

We feel that this is just about the appropriate time to take a curtain call on this counter and the two other Ansal concerns, Ansal Buildwell and Ansal Housing. The latter have no fundamentals to justify the current market price of Rs 42 and Rs 78.

Investors Beware.