- Hike in cess from Rs.2500 to Rs.4500/ton seemed to have badly hit the upside in the stock price.
- Delays in production approvals and the resultant restriction in production growth has also affected
stock price movement.
- Target price on the scrip has been revised to Rs.342 from Rs.327 on expectation of higher crude oil
price and exchange rate benefit (Rs.50 /Dollar) and also considering negative impact of cess hike.
- It seems that most of the positive catalysts are priced in at the current price and the potential upside
lies with the reserve upgrade. But, this is unlikely in the near term.
- The stock has solid fundamentals but it looks better to wait for a better entry point.
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