This stock has corrected more than 48% from its 52 week high and hit its 52 week low of 110.05 last Friday (10 Dec 2010). But at current levels we see this stock is very attractive as its a company having market cap at Rs.2500 crore. at current market price it is trading with P/E of 7 and book value of around Rs.180. Also its a good dividend paying company which has consistently given dividends in its last 10 years of its operation. Robust growth is seen in automobiles sector. Fundamentals of the company are very strong and healthy. The fact for buying this stock is, the assets of the company are at Rs.5900 crore which is worth more than the market cap of the company at current market price of 119.
Looking at these strong fundamentals we recommend to accumulate this stock for short term, Enter Buy position around 113 – 119, for target of 156 / 189. Stop loss should be placed near 92 levels.
Definitely good stock to buy, with 49% upside expected.