In its latest research report, Nirmal Bang, an equity research firm said that Aditya Birla Nuvo, which has been consolidating between Rs 968-980 level, can give good returns in the short term.

The report further stated that, if the counter is successful to breach Rs 1050 levels, then it will create a huge breakout.

Nirmal Bang has advised investors to hold the stock to achieve a target price above Rs 1105. The stock has support at Rs 940.

Today (Sep 04), the shares of the company opened at Rs 981 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 6.15 & 157.89 respectively. The share price has seen a 52-week high of Rs 1314 and a low of Rs 330.25 on BSE.

Aditya Birla Nuvo, on Aug 19, said that it is anticipating an equity infusion of about Rs 6 billion from its billionaire promoter, Kumar Mangalam Birla, during the existing fiscal in the form of warrant conversion.

Another Rs 4 billion is projected by 2010.

At the conversion rate of Rs 531.19 per share, the company allotted 18.5 million shares to the promoter group companies in June 2009.

The warrants would terminate in 18 months.

Aditya Birla Nuvo, on Aug 14, announced that it is making discussions with worldwide PE players Blackstone, Carlyle and KKR in order to sell shareholding in its planned holding company for its financial services business.

On Aug 7, Aditya Birla Nuvo said that it has decided to utilize the surplus cash produced by its older-businesses including carbon black, fertilizers, insulators, rayon and textiles in the rising new-generation businesses financial services, telecom, BPO and IT.

Moreover, the company is eyening a transformation from a producer to a `premium conglomerate`.