Q2 results for Gammon India are not looking so good. The stock today stands at 179, higher than the 151 I paid for it in June 2009, but lower than the 197 I paid in September 2009.
The reason for first buying the stock was that you could see Gammon all over the place in Delhi. The were building the metro and countless flyovers in Delhi. Financials were good, and in September 2009, I had already made a decent amount of money. The financials still made sense and there was no reason not to buy a bit more. It looked pretty good in the portfolio at that time.
The stock went further up and stayed in the 220-240 range, when I should have sold, and then started the gradual decline. I still think it is a decent company to invest in, the industry as whole has good potential, but the recent bad press means that the share price is likely to go down further in the near future.
For now, I am selling. However, I will try to keep an eye on the stock and buy back at lower levels.
Links to Gammon India:
Google Finance
MoneyControl
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