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Opportunity Loss

BSEL Infrastructure is showing no signs of sustaining its operations. Find out what investors should do…

I have around 600 shares of BSEL Infrastructure purchased over a period of time. I am desperate in making my investments somewhat meaningful. I would like to know how the company is expected to do in the future and what should be my strategy so as to curb the heavy loss incurred with investments in BSEL.
– L R Prabhakaran

BSEL Infrastructure is a realty company which has been a loss making entity on a consolidated basis since the past two financial years (2010-2012). Surprisingly, the revenue on consolidated basis is also negative for FY12 due to net cancellation or prior period adjustment.

The poor performance of the company cannot solely be blamed on the deteriorating realty sector which itself is trying to recover from the 2008 downfall. The company shows no signs of sustaining its operations. The topline has consistently fallen over the past four years. BSEL can make a comeback only if the realty sector revives or the management takes some drastic steps to breathe life into the company. Both of these situations seem a far thing for now.

Investment in a company which is consistently falling along with its fundamental is not a sensible investment. Hence, rather than waiting for the stock price to recover, you should exit and invest the same in a meaningful mid-cap company with sound financials. The new investment might have the potential to recover the loss incurred by you than waiting for BSEL to turnaround.

Waiting for revival in a fundamentally weak company is opportunity lost to gain in a fundamentally strong company in the long run.

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