Buy IPCL
March 15th, 2006 by AnalystIndian Petrochemicals Corporation Ltd.
This is a Mukesh Ambani Group Company engaged in the business of Petrochemicals and polymers. The company had posted remarkable increase in profits at the end of financial year 2005.
The EPS based on profits of year 2005 is around Rs. 34 and its current market price is around Rs. 235, which means the stock is available at a PE ratio of about 7, which seems to be very cheap compared to its peer group. Further the company is expected to post good results during the current fiscal. The unaudited results will be out in about a month and the stock price should match its results.
The stock had touched Rs. 270 being very bullish during January this year. Then it came down steadily to Rs. 230 and then it showed signs of reversal. A strong support was placed at Rs. 220 but stock seems to be on an uptrend after touching Rs. 230.
Try to grab it at its current price of around Rs. 235. The stock should cross Rs. 260 very soon, hold it further to see it cross Rs. 300.
Posted in Stocks, Daily Tips |
