Monday, January 19, 2015

Veer Energy and Infrastructure Ltd: Buy
Engaged in the wind energy business, Veer Energy is planning to come up with 40 mw Grid-based Solar Power Infrastructure project on the 200 acres land at Kutch in Gujarat. 

Earlier there were media reports that, Veer Energy has signed Expression of Interest with one of World's leading wind turbine manufacturer for sale of an exclusively, indefeasible right to use the transmission rights granted by GETCO for Power Evacuation of 30 MW WTG, along with government waste land allotted to Veer Energy on lease basis by Hon. Collector for setting up wind farm.

It has a book of Rs.6.08 and has a market cap of only Rs.25.61 Cr at the CMP of Rs.3.57. Also it is a dividend paying company.

One can buy the scrip at around Rs.3.30-3.50 for a target of Rs.5, in the short term. The scrip is today moving up with good volumes. The volume of shares traded in the BSE is nearing half million (414138 shares traded till 12 noon) in the first hour of trade against the 2 (two) week Average Quantity of 1.30 lakhs. 

Since Suzlon Energy Ltd (Rs.17.30) is moving up, by logic this should also move up, albeit with a slightly better fundamental. 
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