Stock market analyst Ashwani Gujral maintained ‘Buy’ rating on Indowind Energy to achieve an intraday target of Rs 42.

According to Mr. Gujral, interested traders can buy the stock with a strict stop loss of Rs 31.

The shares of the company, on Monday (July 13) closed at Rs 36 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 1.93 & 19.17 respectively. The share price has seen a 52-week high of Rs 70.80 and a low of Rs 16.80 on BSE.

Mr. Gujral also said that if the stock market remains on the positive track, the stock will hit another target of Rs 47 in today’s session.

Chennai-headquartered Indowind Energy Ltd has decided to invest around Rs 100 crore in order to produce 30 MW of wind energy in 2009-10.

During the last fiscal, the company added 20.25 MW to its existing capacity of 7.59 MW entailing an investment of Rs 160 crore.

In addition to this, the company has also planned to swell its authorized capital to Rs 200 crore from Rs 65 crore, to lift funds for growth plans by conversion of foreign currency convertible bonds (FCCB), qualified institutional placement, preferential allotment to promoters and employees stock option.

Indowind Energy Ltd, on June 18, has declared that the company’s board has sanctioned the decision to lessen the conversion rate on subsisting Foreign Currency Convertible Bonds (FCCB) issued during December, 2007 based on the existing market values, subject to SEBI guidelines, RBI principles, sanction of shareowners and other regulatory authorities, for the sake of the investors in the bonds.

This will help Indowind Energy to raise its equity and lessen the liabilities.