Karvy Stock Broking Limited has maintained ‘buy’ rating on Lanco Infratech stock with an intraday target of Rs 121.50.

According to Karvy, interested traders can purchase the stock between Rs 114-116 with a strict stop loss of Rs 110. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 123.
 
Shares of the company, on Wednesday (March 05), closed at Rs 114.15 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 11.49 and 10.23 respectively. The share price has seen a 52-week high of Rs 589 and a low of Rs 83.10 on BSE.

The stock has great potential to rise on the back of healthy growth plans and well-built operating capabilities.

The government of Punjab, on Feb 20, approved revised bid offer of Lanco Infratech for establishing 1,320 MW Rajpura Thermal Power project.

A decision to this effect was taken in the conference of the Council of Ministers led by the Punjab Chief Minister Parkash Singh Badal.

On Feb 19, Lanco Infratech has awarded an order to Areva T&D India, electrical equipment manufacturer, for equipment for the 765 kV substation at Uttar Pradesh for an undisclosed amount.

All the major equipment such as circuit breakers, instrument transformers, automation would be developed indigenously in Areva T&D's India plants. The order would be completely commissioned by April 2010.

Lanco Infratech, on Feb 06, said that two of its promoters including Lanco Group and Prince Stone Investments have pledged 8.52% company’s stake with an undisclosed entity.

It said that Lanco Group has pledged 37.12 lakh shares, while Prince Stone Investments has pledged 1.52 crore shares of the company.
     
Lanco Infratech has registered a sharp increase in consolidated net profit for the three month period ended December 2008.

During the quarter, the company’s profit grew 0.42% to Rs 798.79 million from Rs 795.44 million in the same quarter last year.

Consolidated total income increased 2.41 times from Rs 18,395.86 million for the quarter ended Dec. 31, 2007 to Rs 7,633.14 million for the quarter ended Dec. 31, 2008.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Reliance Power and Tat Power.