Stock market analyst Ashwani Gujral has suggested investors to 'sell' Essar Oil stock as there are full chances of a downward trend in this stock.

According to Mr. Gujral, investors can sell the stock with a stop loss of Rs 147 to achieve a target between Rs 130 – Rs 125.

Today (July 08), the shares of the company opened at Rs 139.10 as against its last closure of Rs 140 on Tuesday (July 07) on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 246.50 and a low of Rs 54.10 on BSE.

Mr. Gujral also suggested that it’s advantageous to sell the stock at the said level as the counter is under huge pressure.

He also said that if the stock fell below Rs 120, it may fell further.  

After selling the stock, the interested investors can purchase the stock again at a low price, for medium term prospective to make good profits.

Essar Oil, in June 2009, said it will lift up $2,000 million (nearly Rs 9,606 crore) via different domestic and international fund raising routes.

The company’s stockholders at its meeting approved raising of $2,000 million via issue of equity shares or convertible debentures from domestic market.

The company would lift up funds via American Depositary Receipt (ADR)s, Global Depositary Receipt (GDR)s and Foreign Currency Convertible Bond (FCCB)s.

During the existing year, Essar Oil`s investment is likely to surge up to $70 million in exploration and production (E&P) if a long-pending production sharing contract (PSC) with the administration for the Ratna and R-Series fields is concluded early.

For the three month period ended March 2009, Essar Oil registered profit of Rs 6,600 million as against a loss of Rs 84.80 million in the same quarter previous year.

During the quarter, net sales jumped 143.59 times to Rs 68,150.00 million, whereas total income surged 139.23 times to Rs 68,320.00 million.

It reported profit of Rs 5.53 a share during the quarter compared with a loss of Rs 0.07 a share in previous year period.