Short Term Buy Call For Alstom Projects

Technical analyst E Mathew has suggested investors to purchase Alstom Projects India Short Term Buy Call For Alstom ProjectsLtd (APIL) stock on declines in order to achieve a short-tern target of Rs 430.

The investors can achieve the target within a period of 3-4 weeks, and the strict stop loss for the suggested counter should be Rs 376.

Today (Sep 04), the company’s shares opened at Rs 396.90 on the Bombay Stock Exchange (BSE), as against its last closure at Rs 399.55 on Monday (Sep 02). Current EPS & P/E ratio stood at 11.06 and 35.62 respectively. The share price has seen a 52-week high of Rs 1109 and a low of Rs 310.10 on BSE.

The stock has great potential to go upside. It can still exhibit superb surge. The long term traders are recommended to hold the stock.

For the three months period ended June 30, 2008, Alstom Projects India registered a marginal increase of 4.57% in net profit to Rs 183 million, as against Rs 175 million during the quarter ended June 30, 2007.

During the quarter, the company’s total Income surged 50.32% to Rs 3,758 million from Rs 2,500 million for the quarter ended June 30, 2007.

The company’s net sales zoomed 51.06% to Rs 3645 million during the same period. The basic and diluted EPS after extra ordinary item increased 4.60% to Rs 2.73 in the quarter ended June 30, 2008 as against Rs 2.61 last year.

In July 2008, Alstom Projects India (APIL) announced that the fully paid up equity shares of its wholly owned arm ALSTOM Manufacturing India (AMIL) held by APIL have been transferred at par to Alstom India (AIL), an Alstom Group company, at the board meeting held on Jun. 04, 2008.