Stock market analysts are of the view that investors can buy Gwalior Chemical Industries stock to achieve a short term target of Rs 163.

According to analysts, interested investors can purchase the stock on declines with a strict stop loss of Rs 104.

Today (Aug 08), the company’s shares opened at Rs 113, as against its last closure at Rs 109.70 on Thursday (August 07), on the Bombay Stock Exchange (BSE). Current EPS and P/E ratio stood at 11.66 and 9.62 respectively. The share price has seen a 52-week high of Rs 127 and a low of Rs 37.05 on BSE.

The outlook for the stock is really very strong price as the company has good growth prospects considering its projects under implementation and influential future plans.

Moreover, the company is making robust efforts in order to strengthen its market share, swell its business, regulates its asset quality and put more pressure on customer service to perk up its profile and fight increasing competition.

Gwalior Chemical Industries Limited is a leading global manufacturer of specialty chemical products. Currently, the company operates seven large chemical plants spanning over two chemical facilities situated at Nagda (Madhya Pradesh) and Ankleshwar (Gujarat) in India.

Over the last two decades, the company built a formidable presence in the speciality chemical industry and has extensively catered to the needs of its clients covering the agrochemicals, pharmaceuticals, dyes and flavours & fragrance industries.

The board of directors of Gwalior Chemical Industries at its meeting held on May 27, 2008, has recommended a dividend of 12% or Rs 1.20 per share of Rs 10 each on 24,676,543 equity shares for the financial year 2007-08, subject to approval of members.

The company registered a 37.63% growth in net profits to Rs 67.74 million for the quarter ended in March 2008 from a profit of Rs 49.22 million for the quarter ended in March 2007.

Net sales rose 48.28% to Rs 857.44 million for the quarter ended March 2008 from Rs 578.25 million for the quarter ended March 2007.

Other stocks from the same sector that looks good for short-term and long-term trading includes Tata Chemicals, United Phos, Guj Gas and Pidilite Ind.