Short Term Buy Call For Orbit Corporation

Stock market analyst Ashwani Gujral has maintained ‘buy’ rating on Orbit Corporation Short Term Buy Call For Orbit Corporation Limited stock with a short term of Rs 380 in 3-4 weeks.

According to Mr. Gujral, interested investors can purchase the stock above Rs 280 with a strict stop loss of Rs 250. If the stock market remains positive in the coming days, the stock pricing becomes more attractive, and reach above Rs 425 within the said time period.

Today (Sep 04), the company’s shares opened at Rs 300 on the Bombay Stock Exchange (BSE), as against its last closure at Rs 304.55 on Monday (Sep 02). Current EPS & P/E ratio stood at 31.74 and 9.82 respectively. The share price has seen a 52-week high of Rs 1079.95 and a low of Rs 202.45 on BSE.

Mr. Gujral continue to like the company due to its exclusive business model, strong occurrence in high-end market of South Mumbai, addition of new exciting projects and strong management group.

The company’s directors, at the annual general meeting of the company held on August 07, 2008, announced 25% final dividend on equity shares and 10% on preference shares.

The members also approved ratification of the first and second interim dividend at rate of 15% each.

Orbit Corporation, a realty developer, has registered a consolidated profit of Rs 182.2 million for the three months period ended June 30, 2008.

During the period, the company’s total consolidated revenue zoomed 27.48% to Rs 821 million over the same period of the last year. The EPS on a consolidated basis stood at Rs 5.02.

On a standalone basis, the company posted a substantial drop in its net profit for the said period. During the quarter, the company’s net profit fell 59.57% to Rs 48.22 million, while net sales dropped 44.25% to Rs 252 million.

The company’s total income for the quarter fell 44.36% to Rs 254.43 million, when compared with the prior year period.

Moreover, the company has purchased 85% equity stake in Ahinsa Buildtech consequent to which it has become a subsidiary of the company.