In its latest research report, Nirmal Bang, an equity research firm said that Unitech can give good returns in 2-3 trading sessions.

The report further stated that, if the counter is successful to breach 87, then it will create a huge breakout.

Nirmal Bang Research has advised its investors to hold the stock to achieve a target price of Rs 91.

Besides, the report has also suggested a support level of Rs 77 for the scrip.

Today (July 2), the shares of the company opened at Rs 83 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 5.62 and 14.48 respectively. The share price has seen a 52-week high of Rs 191.50 and a low of Rs 21.80 on BSE.

The net debt of the company will reduce to Rs 50 billion by July’s first week, following an infusion of Rs 28 billion into the company during the last week via a private placement of shares.

Unitech has been amassing funds from the start of this year to perk up the cash flow of the company and lessen its huge arrears, which surged to nearly Rs 110 billion by 2008-end.

Unitech has seceded to raise $575 million via Qualified Institutional Placement (QIP).

Previously, it lifted $325 million.

The fund would be utilized to pay back part of the company’s arrears, which is presently at Rs 75 billion.

Unitech had got shareholders` nod to issue 1 billion shares in the last Extraordinary General Meeting (EGM) held on June 16.