Short Term Buy Call For Reliance Capital: Ashwani Gujral

Short Term Buy Call For Reliance Capital: Ashwani GujralStock market analyst Ashwani Gujral has maintained ‘Buy’ rating on Reliance Capital to achieve short term target of Rs 1060.

According to Mr. Gujral, interested traders can buy the stock above Rs 919 with a strict stop loss of Rs 880.

Shares of the company, on Monday (June 08), closed at Rs 929.55 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 39.41 & 23.59 respectively. The share price has seen a 52-week high of Rs 1470 and a low of Rs 274.20 on BSE.

Reliance Capital, on June 05, announced that it has raised its equity stake in electronic media company Network 18 Media & Investments Ltd to 7.27% for more than Rs 40.83 crore.

Reliance Capital purchased more than 26.75 lakh shares of the company via open market purchases and allotment on conversion of partly convertible cumulative preference shares and warrants.

Reliance Capital, on June 01, raised Rs 3.62 billion via a bond sale, which opened during April 2009.

Reliance Capital sold 3-year bonds with a coupon rate of 9.6% and 5-year bonds containing a coupon rate of 9.75%.

The issue had aimed to raise at least Rs 2 billion.

Reliance Capital Ltd., in May 2009, announced that it has decided to sell as much as a 26% equity stake in its life insurance segment to swell the business in Asia’s third-largest financial system.

The company hadn’t determined if it will sell shares via IPO or to large investors.