I have recommended buy on Govind Rubber @ Rs.17 in July 2010.After touching a high of Rs.26 (an appreciation of 50%) ,currently it is trading around Rs.15/- ( about 12% below the recommended price). Even if the company belongs to a good business group and planning to diversify into Bicycle and Agricultural farm sprayers , considering the sharp rise of its prime raw material (Natural Rubber) ,company may face margin pressure in near future. Considering this fact one may consider an EXIT from this counter and re-think when some change in situation..
Thursday, 27 January 2011
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