IIFL is bullish on Bhushan Steel and has maintained 'buy' rating on the stock in its latest research report.

According to IIFL research report, the interested investors can buy the stock to achieve a target of Rs 425

The research report said that the interested investors can buy the stock above Rs 407 with stop loss of Rs 399.

Today, the stock of the company opened at Rs 406 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 545 and a low of Rs 254 on BSE.

Current EPS & P/E ratio stood at 46.43 and 8.91 respectively.

As per report, "Bhushan Steel has given a breakout from the downward sloping resistance line on the daily chart. The stock had been stabilizing around its 200-DMA from last three trading sessions. The stock is also forming a triple top formation with resistance around Rs 406-409. Triple Top is a chart pattern with three tops very close in price. Triple tops have an enormous amount of breakout potential as the price of the stock has moved back and forth within a defined range. A close above Rs 411 accompanied with sporadically high volumes could result in breakout of the above mentioned pattern."

Bhushan Steel registered a good growth in standalone net profit for the three month period ended December 2010.

During the said quarter, the company's profit grew by 23.27% to Rs 2,803.50 million as against Rs 2,274.30 million during the corresponding quarter last year.

Net sales for the period increased 35.95% to Rs 19,427.40 million during the period.

The company's total income surged 34.24% to Rs 19,527.20 million.