Wish to buy IFCI out of my hard work money ?

Query: I am Ganesh Kadam from Mumbai, this is my first attempt of query to you expect to get answer from you. I would like to know the prospects of IFCI, what is the possible target for this company in next six months? Because I think to buy a large quantity of this share out of my hard work money on one of my freinds recommendation.

Thebullishtrends: IFCI share price closed yesterday at Rs.58.65. IFCI closed currnet month futures with 0.40 premium yesterday. It adds 8,74,125 shares (1.99%) in open interest pushing the open interest to 4,46,98,500 shares. IFCI price lost 35.86% over a month of time and gain 103.29% over a period of one year time frame. It is not a good strategy to keep entire amount on one stock. Recently IFCI allotted to Financial Institutions who were holding Zero Coupon Optionally Convertible Debentures have been allotted 12,37,37,735 equity shares of Rs.107 per share including Rs.97 as a premium per share.

Though IFCI is a financial instituion it is recovering NPAs and posting the profits. IFCI is having 19% stake in Tourism Finance, 17% stake in Stock Holding Corpn, 8% stake in GIC Housing and 5.44% stake in NSE and having quoted/un quoted investments are near by 5,000 crores. Considering all parameters it is the better buy at current levels as the down side risk is low. The stock is having potential to go upto Rs.100 level in the medium-long run. However it is not advised to keep all your hard earned money in one stock.