Stock market analyst Hitendra Vasudeo of stockmechanics.com maintained ‘Buy’ rating on Guj NRE Coke to achieve an intraday target of Rs 56.50.

According to Mr. Vasudeo, interested investors can buy the stock around Rs 51.20-Rs 48 with a strict stop loss of Rs 45.

The shares of the company, on Monday (July 21), closed at Rs 53.35 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 2.25 & 22.78 respectively. The share price has seen a 52-week high of Rs 88.32 and a low of Rs 16.80 on BSE.

Mr. Vasudeo said that if the stock markets remain positive today, then the next target for the day will be Rs 65.10.

Gujarat NRE Coke (GNCL) said that it has decided to establish two greenfield plants one each in Gujarat and Andhra Pradesh having a production capacity of 1 million ton.

It is discovered that the overall investment in these two projects is approximated to be Rs 1.5-2 billion.

Gujarat NRE has also chalked out an investment of Rs 5.36 billion for its Australia and India operations.

Gujarat NRE Coke posted a substantial fall in standalone net profit for the three month period ended June 30, 2009.

During the period, the company’s profit dropped 96.14% to Rs 36.40 million as against Rs 944 million during the same quarter last year.

Net sales declined 17.90% to Rs 3,100 million, whereas total income during the same period fell 12.42% to Rs 3,346.50 million.

It reported EPS of Rs 0.08 per share during the period.

During the quarter, the company’s operating margin dropped to 5.45% as compared to 33.50% during the previous year period. Interest cost surged 2.52 times to Rs 246 million whereas depreciation cost climbed 50.66% to Rs 113.60 million over previous year period.