Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy on ‘Max India’ with a short-term target between Rs 235 – Rs 270.

The report further stated that, if the counter is successful to breach 835, then it will create a huge breakout.

Interested investors can buy the stock on dips and hold.

In addition, the firm has suggested a support level for the scrip at Rs 195.

Today (July 20), the shares of the company opened at Rs 216 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 0.98 & 214.08 respectively. The share price has seen a 52-week high of Rs 253.80 and a low of Rs 81 on BSE.

Max India Ltd declared that a meeting of company’s directors will be held on July 30, 2009, to take on record the company’s un-audited financial results along with Limited Review by the Auditors for the quarter ended June 30, 2009 (Q1).

Max India, on June 30, said that it has decided to lift Rs 4 billion through QIP route.

The company has trashed its earlier decision to raise Rs 6.5 billion via rights issue. A decision in this regard is likely to be taken at the company’s board meeting planned to be held on July 1.

Max India requires funds to develop the group’s insurance company Max New York Life Insurance (MNYL), a 74:26 JV between Max India and US-based New York Life.