Indiabulls Securities Ltd has maintained a ‘buy’ rating on the Reliance Capital with a long term target of Rs 1,332.

According to Indiabulls, interested investors can purchase the stock between Rs 1,110-1135 with a strict stop loss of Rs 1,080.

Today (July 11), the company’s shares opened at Rs 1,136, as against its last closure at Rs 1,117.85 on Thursday  (July 10), on the Bombay Stock Exchange (BSE). Current EPS and P/E ratio stood at 41.75 and 26.83 respectively. The share price has seen a 52-week high of Rs 2925 and a low of Rs 822.50 on BSE.

If investors have already invested in Reliance Capital then it is wise to remain invested in the stock. The stock has great potential. It can still exhibit superb surge. It will achieve the target price as the company has aggressive growth plans and strong operating capabilities.

Presently Reliance Capital is making robust efforts to develop its market share, strengthen its business, regulates its asset quality and lays more pressure on customer service to improve its profit outlook and face growing competition.

Reliance Capital reported a 23.89% increase during its fourth-quarter earnings at Rs 3,864.90 million. Net sales rose 95.68% to Rs 7,970.70 million, while total income surged 96.20% to Rs 7,992.90 million.

The board of directors of Reliance Capital recommended a dividend of Rs 5.50 on equity share of Rs 10 each for the financial year ended Mar. 31, 2008.

Reliance Money, the broking and financial services arm of Reliance Capital, has made entry into a distribution tie-up with the Nigeria-based Chellarams.

It has also formed a new company together with Bahrain based Riyada Consulting, Saudi Arabia. Moreover, it also entered into wealth management services, as part of its expansion plans, completing the entire range of its financial services.

Reliance Money has also joined hands with Parsoli Corporation to roll out the country`s first Shariah-compliant Portfolio Management Scheme (PMS) for investors in India and West Asia seeking to invest as per the Shariah Laws.

Reliance Money has proved to be an amazing success story as it has reached breakeven point (BEP) during the first year of its operations. It has been aggressively expanding its businesses by launching several new ventures.