Karvy Stock Broking Limited has maintained ‘Buy’ rating on Grasim stock to achieve a target of Rs 1450 within 2-3 days.

According to Karvy, day traders can buy the stock between Rs 1350-1360 with a stop loss of Rs 1300.

Shares of the company, on Tuesday (Mar 03), closed at Rs 1362.05 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 210.60 and 6.57 respectively. The share price has seen a 52-week high of Rs 2930 and a low of Rs 831 on BSE.

The stock performed well on March 03, and gained Rs 11.95 as against its previous closure of Rs 1350.10 on March 02.

Buoyed by an improved demand, cement manufacturers have increased prices by Rs 5-8 per 50-kg bag in Mumbai and Gujarat from Sunday.

This has beaten the administration’s decision to pull down cement costs by cutting excise duty.

Post-hike, retail cement prices are floating at around Rs 240 per bag in Mumbai and Gujarat. But, there is no change in prices in other parts of Maharashtra.

But the hike is not in direct proportion to the increase in demand, which has been marginal.

Rumours are that cement manufacturers are creating an artificial supply gap and that's what is driving the prices up.

During the last month, government has announced reduction of excise duties and service tax by 2% to develop the ailing financial system.

The general excise duty has been brought down to 8% from 10%, while service tax has been cut to 10% from 12%.

With strengthen of new capacities, the company said that it expects its cement volume growth at 10% in FY10. Setting up of a diesel generator at its 1.3 mtpa grinding facility in Panipat by the next 2-3 months would lessen power shortages at this facility.

VSF volumes are yet to lift up as weakness in domestic and worldwide textile demand continues.

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