Dredging Corp

Dredging Corp: I have been following this stock for a while now. It is public sector company, which consistently provides dividend. But the earning have been down or the same for the past one or two years. Looked up in IDBI earnings have reduced drastically from 60 rs to 40 rs per share. Book value is around rs 308. I dont really see any stories about the company. Today I saw the price of this stock shoot up 12 % to 568.95. Here is the clip. This is because the company was awarded a contract by Indian gov to clean up some port in south india. Infact I was looking at the website yesterday and it was horrible. I couldnt find the annual reports of 2005-2006. I dont have a similar company to compare for relative valuation. Assuming 10% increase in profit every year till 2010 the current price should be 550 ( 308 + 40 + 44 + 48.4 + 52. + 57 ) Assuming 15% increase in profit every year till 2010 the current price should be 577 (308 + 40 + 46 + 52 + 60 + 69) Looks like the company is attractively valued now. I think it is wise to sell the stock now.