Stock market analyst E. Mathew has maintained ‘buy’ rating on Reliance Capital stock with an intraday target of 1312.

According to Mr. Mathew, interested traders can purchase the stock on declines near Rs 1264-1252 with a strict stop loss of Rs 1231. If the stock market remains positive, the stock pricing becomes more attractive, and reach above Rs 1319.
 
Shares of the company, on Thursday (Aug 28), closed at Rs 1284.55 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 1946750. Current EPS & P/E ratio stood at 42.74 and 31.22 respectively. The share price has seen a 52-week high of Rs 2925 and a low of Rs 822.50 on BSE.

The stock has seen a decent rise in recent trading sessions. The stock has good potential and it can still exhibit superb surge. It has a potential to rise to the target price as the company has good growth prospects considering its projects under implementation and aggressive growth plans.

Reliance Money, an unit of financial services company Reliance Capital, in company with the National Multi-Commodity Exchange (NMCE) will establish a spot exchange for trading in agricultural products.

The two companies would jointly build up National Agricultural Produce Marketing Company of India (National APMC), which would offer up necessary infrastructure for electronic trading in agri products.

For the three months period (Q1) ended June 30, 2008, Reliance Capital announced posted a 5% increase in its consolidated profit, which stood at Rs 3,431 million after minority interest and share of profit of associates as compared to Rs 3,253 million for the quarter ended Jun. 30, 2007.

Total Income zoomed 31% to Rs 15,446 million, as against Rs 11,762 million for the quarter ended June 30, 2007.

The company’s EPS stood at Rs 13.97 for the quarter ended June, 2008 as against Rs 13.07 for the same period last year, thus witnessing a rise of 7%.

On July 12, Reliance Money, a subsidary of Reliance Capital, signed up a JV deal with the Ahmedabad-based National Multi-Commodity Exchange (NMCE) to buy 26% stake in the bourse.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Bajaj holdings, KGN Industries and JM Financial.