Nirmal Bang, one of the leading equity research-cum-broking house, is of the view that investors can buy Moser Baer stock with a target price of Rs 85.

The company is presently trading around Rs 72 level.

According to experts at Nirmal Bang, the stock may face some resistance around Rs 78 levels, but after that it can even have more upward movement.

The scrip has very strong support at Rs 178.

Shares of the company, on Monday (May 04), closed at Rs 127.40 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 201.30 and a low of Rs 41.10 on BSE.

For the quarter ended March 2009, Moser Baer reported standalone profit of Rs 429.30 million as against a loss of Rs 717.22 million during the corresponding quarter of
2008.

Net sales during the quarter increased 8.24% to Rs 5,098.50 million, whereas total income rose 9.27% to Rs 5,198.50 million.

The company reported EPS of Rs 2.55 during the quarter.

Economic slump has forced many Indian film production houses to either walkout or postpone new projects. But, Moser Baer Entertainment (MBE), a division of Moser Baer India, a quite new applicant in film production, is making major investment in film production.

Following a de-risking model, MBE will invest in big, medium as well as small budget films across three languages such as Hindi, Tamil and Malayalam. It is also looking for co-producers who would be eager to co-invest with the company and share the risks and rewards.