Here is a recent post on S P Tulsian's website on IFCI's current valuation. Numbers look very attractive. Upside gain of about 40% is likely in 12-18 months, if not earlier. There was also a rumor that LIC was pushing for a majority stake in IFCI so they can join the leagues of ICICI and SBI, by entering financial services et al.
Many people, yours truly included, have burnt their fingers in this stock, when the strategic stake sale failed, in Dec 07. I had then sold majority of my IFCI Holding @ 77 and booked good amount of losses. I took the advantage of recent crash and bought all of that @ 45.
Given the financial recoveries, land bank, established presence, amongst others, I think there is a good value in the stock even at around 62 at present. One needs to be patient with such turnaround cases.
At the same time, given the current state of market, there are many stocks, particularly blue chips, where 40% upside is possible in next few months. To my mind, one can buy any of these as long as one understands the underlying business, believes in the management quality and can weather the volatility given the state of US economy and the associated effects.
Regards,
Rohit
Disclosure
I am long on IFCI.
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