Karvy Stock Broking Limited has maintained ‘Buy’ rating on Grasim Industries stock to achieve a target of Rs 1440 within 1-2 days.

According to Karvy, day traders can buy the stock above Rs 1400. If the stock market remains on positive track, the next target will be above Rs 1442. The stop loss marked for the suggested stock is Rs 1375.

Shares of the company, on Wednesday (Feb 25), closed at Rs 1,407.15 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 54537. Current EPS & P/E ratio stood at 210.60 and 6.68 respectively. The share price has seen a 52-week high of Rs 3110 and a low of Rs 831 on BSE.

The stock has great potential to go up on account of healthy growth plans and well-built operating capabilities.

The administration has announced reduction of excise duties and service tax by 2% to improve the sick financial system.

The general excise duty has been slashed to 8% from 10%, whereas service tax has been cut to 10% from 12%.

On this, Mr. DD Rathi, CFO, Grasim, stated that the move is welcome in the existing economic condition.

At the same time, he also said that the move would not have any material change.

“Duty will go down on sponge iron, caustic soda and perhaps the white cement also. There will be 2% cut in duty on these products perhaps, which should help boost demand,” he said.

On the impact of the excise duty cut on cement industry, he said that the steps declared brings bulk cement more or less at par with retail cement or MRP based levy.

Following Tuesday’s excise duty cut, cement prices will fall Rs 4-5 every 50 kg-bag from March 1. Executies of leading cement makers said that the cut on duty will be passed on to customers.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Larsen, Voltas, Century and Reliance.