FINANCE & STOCK ADVICE: My View On Bongaigaon Refineries

About The Company

A good company in the refinery segment and stock has been popular among the investor in the capital markets.

About The Results

The company has posted results for the third quarter ended 31^st Dec 2008 reported a 24% drop in net sales on a YoY at Rs.1112.07 crore and this fall is precipitated further at 49% on a QoQ. This fall is despite the company stating that its refinery capacity utilisation during the quarter was 95.1% as compared to 79.1% during Q3FY08 and this higher capacity utilization was due to higher availability of crude oil. DMT and Polyester Staple Fibre (PSF) unit continue to remain under shutdown during the period due to economic reasons. The reformer unit of Xyelene plant continues to operate on Motor Spirit (MS) mode and consequently the same is being treated as a part of Refinery Unit. Obviously these factors pulled down the realisations despite higher utilization.

The company posted a net loss of Rs.224.09 crore as against a net profit of Rs.84.90 crore in Q3FY09 and net loss in Q2FY09 was at Rs.81.15 crore. This was mainly on account of the Rs.350 crore lost due to inventory. The GRM from April to December was marginally lower at 5.3, which in Q2FY09 was at 5.4.

What is notable is that it’s operating expenses for the current third quarter has come down drastically. This is obviously due to the fall in the price of crude. It has come down by 40% on a QoQ and on a YoY it remains steady with a rise of just 2.47%. In the coming months, commodity experts confer that price of crude is expected to go up, not to three digit numbers but surely higher than the levels it is at today.

Clue in The Stock

The merger with Indian Oil Corporation? Subsequent to the approval by the shareholders and creditors of the company to the Scheme of amalgamation for merger of Bongaigaon Refinery with IOC, a confirmation petition was filed by the company with the Ministry of Corporate Affairs (MCA). The final hearing before MCA has been concluded on November 19, 2008 but the order in the matter has been reserved by MCA.

About The Stock

A shrewd eye to be kept on Indian markets and some stake could be added up on dips.

Disclaimer : I do not have any personal holding in this stock

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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My View On Bongaigaon Refineries