According to technical analysts, ASHAPURA MINECHEM can be purchased with strict stop loss of Rs 365 for the target of Rs 396-405.

On National Stock Exchange, the stock has touched 52-week high of Rs 426 with the low of Rs 95. Based on current results, the stock is trading at a P/E of 20.41 and offers an earning per share of Rs 17.96.

It is the largest mine owner, organized producer & exporter of Bentonite in India. It exports to over 30 countries in Middle East, Latin America, Europe, Egypt, Japan, South East and Australia.

Stock of ASHAPURA MINECHEM has been in the news in recent two months as the company has announced a deal with overseas company. As per the latest profit and loss account, the company has registered a net profit of Rs 109.16 for year ended March, 2007. The net profit for quarter ended Sep, 2007 stood at Rs 39 crore.

Other companies from the sector which are looking good include Sesa Goa, Guj Mineral and Ferro Alloys.