|Photo: The Business Standard|
Today a buy call NIFTY_JUL-7700-CE @ Rs.59, for a target of Rs.81 and Rs.101, keeping SL of 7475 below NIFTY SPOT. It reached a high of Rs.137.70 intra-day giving more than double return in just 3-4 hours.
revised after a period of three years. Last revision took place in August, 2009. Therefore, another revision, which is due, will be undertaken to ensure greater revenue to the State Governments". Hence, the budget is infact positive for the mining sector. Moreover, selling bids in both the BSE and NSE, for Resurgere Mines and Minerals Ltd, has also come down, indicating that we are perhaps at the last leg of correction. The scrip is going for natural correction after a long and grueling rally. Those who will hold the scrip for the medium to long term would be benefited. All the negative factors are already factored in the current price of the scrip, whose market cap has come down from around Rs.1500 Cr in 2008 to Rs.49.91 Cr. The book value of the shares of the company is still at Rs.26.49. The company will start to show better sales volume, once the mining starts in Mahalmiriya (Bauxite) Mines in Maharashtra which has already got approval from the authorities, but got struck up due to some problem in the lease agreement. The mining could start post monsoon, in this mine and in other mines.