In its latest research report, Nirmal Bang, an equity research firm said that Aditya Birla Nuvo, which has been consolidating between Rs 985-1020 level, can give good returns in the short term.

The report further stated that, if the counter is successful to breach Rs 1040 levels, then it will create a huge breakout.

Nirmal Bang has advised investors to hold the stock to achieve a target price above Rs 1150.

The stock has strong support at Rs 980.

Today (Sep 08), the shares of the company opened at Rs 1023 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 6.15 & 166.34 respectively. The share price has seen a 52-week high of Rs 1249 and a low of Rs 330.25 on BSE.

The managing director (MD) and chief financial officer (CFO) of Aditya Birla have given nod to the allotment of 50 shares against conversion of zero interest secured FCDs and 50 shares against detachable warrants.

Moreover, it has also sanctioned 50 bonus shares against zero interest secured FCDs and detachable warrants and 35 shares against right shares issued in 2006-07 that were kept pending.

Aditya Birla Nuvo, on Aug 19, announced that it is eyeing an equity infusion of approx Rs 6 billion from its billionaire promoter, Kumar Mangalam Birla, during the subsisting financial 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 cease in 18 months.

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