Technical Analysis of Indian Equities by Nooresh

Jain Irrigation Systems Limited DVR issue quoting at 48-49% discount.

Hi,

Just an interesting observation.

Jain Irrigation CMP – 118-119

Jain Irrigation Dvr – 61.2

Any further lower circuits on DVR will make it interesting. Current discount around 48-49%.

Generally DVRs trade at 50% discount max.

 

For example Pantaloon and Tata Motors DVR have not traded beyond 50 % discount.

 

This is clearly a good switch for investors holding Jain Irrigation would be better of selling equity shares and buying DVR on further decline. Will be worth a gamble at 50 rs 🙂 ( maybe aggressive players may even try an arbitrage with a short on Jain Irrigations future ). But i would still wait till it goes to sub 55 to review.

 

One may do their own research as Tata Motors DVR kept widening from 35 to 45% over the next 1 year. So we dont have any precedents as worldwide the discount is around 25-35%.

 

This is just a quick observation will post more once i read more into it.

 

Regards,

 

Nooresh Merani

 

nooreshtech@analyseindia.com

Article by Nooresh Merani

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{ 2 comments… add one }
  • saurabh shankar January 8, 2012, 17:17

    Hi,

    Morgan Stanley bought the DVR’s on 6th.

    06-Jan-2012 JISLDVREQS Jain DVR Equity Shares MORGAN STANLEY ASIA (SINGAPORE) PTE BUY 1,06,524 35.00 –

    Reply
    • nooresh January 11, 2012, 11:27

      Ya but some other fund sold it i suppose

      Reply

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