Sell Reliance Capital – Nirmal Bang

Sell Reliance Capital – Nirmal BangNirmal Bang Research has maintained ‘Sell’ rating on Reliance Capital stock to achieve a target that lies between Rs 475-430.

According to research report, investors can sell the stock with a strict stop loss of Rs 517.

Today (April 23), the stock opened at Rs 512.25 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 41.65 and 12.05 respectively. The share price has seen a 52-week high of Rs 1620 and a low of Rs 274.20 on BSE.

Nirmal Bang is of the view that investors should sell the stock today in order to avoid loss.

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

On April 02, Fitch Ratings, credit rating agency, affirmed Reliance Capital (RCL) National Short-term rating at `F1+(ind)`, in addition to the `F1+(ind)` National rating of its Rs 30 billion short-term debt programme.

RCL`s rating reflects its reasonably strong capitalisation and leading positions some of its key businesses maintain in the Indian financial services industry.

During March 2009, Reliance Money Express, part of the Reliance Capital, has declared that the company would buy 51% stake in No 1 Currency, the UK`s independent foreign currency specialist.

Sudip Bandyopadhyay, director and CEO, Reliance Money Express made this declaration.

The attainment will make Reliance Money Express the first Indian company to get hold of an international foreign exchange company.

Moreover Reliance Money, the retail brokerage arm of Reliance Capital, is eyeing to cross the 10 million customers mark by the end of 2010, with more than 30% of new customers projected from semi-urban and rural regions.    

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