Nirmal Bang has maintained 'Buy' rating on Neyveli Lignite stock to achieve a target of Rs 118 within 4 to 5 trading sessions.

Interested traders can buy the stock on dips with a stop loss of Rs 94, as the stock has given a major trend line breakout 94.

Shares of the company, on Friday (May 08), closed at Rs 102.90 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 155.44 and a low of Rs 44.50 on BSE. Current EPS and P/E of the stock stood at 6.47 & 15.61 respectively.

According to Nirmal Bang, the stock has seen lots of gains in the past few weeks, so buy it, it will prove that it's definitely a strategic stock.

Neyveli Lignite Corporation Limited (NLC) is a government-owned lignite mining Indian company, which is wholly owned by the Union Government (49%) and administered via coal ministry.

The company runs the biggest open-pit lignite mines in India and mines around 24 million tonnes of lignite annually for fuel, with an installed capacity of 2490 MW of electricity per annum.

Out of this, the origin state of Tamil Nadu uses 1167 MW, with the adjacent states (Kerala, Karnataka, and Andra Pradesh) using most of the rest.

The company's functions are in Neyveli, 197 km south of Chennai and 70 km west of Chokecherries.

NLC now elaborated its project to Rajasthan also in mining as well as thermal stations.

NLC Neyveli, spreads over an area of around 54 square km, comprising Neyveli Township and temporary colonies including Mandarakuppam, Thedirkuppam, Thandavankuppam, and Block-21'. Neyveli Township has around 32 blocks.

The company runs thermal power plants, 3 big mines. The company also supplies a huge amount of sweet water to Chennai.