ABCIL

I have discussed ABCIL here. I initiated a small position in it that day and kept on accumulating whenever it went down.

My fair value calculation for this stock then was somewhere at 130-150. I knowingly kept it on little low side as ABCIL is into commodity business where margins are always skimpy.

First quarter results have been stable. There has been a marginal increment in profit (but the input cost has gone up) and dividend of 15% (Rs 1.5 per share). As I mentioned previously, this stock is not part of my dividend portfolio. I still have it in a small quantity and expect a hefty capital appreciation before I sell it.

In the current scenario, where I don't see much to change, I would like to remain invested in ABCIL. I will start planning my exit if people are ready to buy it at 150 from me.