Nirmal Bang has maintained 'Buy' rating on Gujarat Alkalies and Chemicals (GACL) stock to achieve a target of Rs 120 in short term.

According to Nirmal Bang, investors can buy and hold the stock with a stop loss of Rs 91.

The scrip may face some resistance around Rs 105.

Shares of the company, on Tuesday (May 26), marked its closure at Rs 99.05 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 200 and a low of Rs 53.50 on BSE. Current EPS and P/E of the stock stood at 25.75 & 4 respectively.

Gujarat Alkalies and Chemicals (GACL) announced that it has decided to invest around Rs 100 billion in joint sector along with other PSUs to make different products for plastic industry by the next three years.

During the Vibrant Gujarat Global Investors` Summit (VGGIL), 2009, in January, GACL signed a memorandum of understanding (MoU) with the other participating PSUs including Gujarat State Fertilizers and Chemicals (GSFC) and Gujarat Narmada Valley Fertilizer Company (GNFC).

Established in 1973, GACL is an innovative company, which develops, produces and sell chemicals.

The products comprise aluminium chloride, chlorine, hydrochloric acid, hydrogen peroxide, phosphoric acid, sodium cyanide, potassium carbonate, chloromethane, caustic soda and power generation.

From an initial capacity of 37,425 TPA Caustic Soda, GACL has grown to be the biggest manufacturer in India, having a total production capacity of 3,58,760 TPA.