The company has paid 10% dividend for FY09. After the unbelievable rally in the auto industry, all auto ancillary companies will record fantastic results over the next two quarters. On a conservative basis, assuming an annualized EPS of Rs.7.38, the BGL stock is available at a forward P/E multiple of just 7.5 at the current level.
Investors can buy this stock with a stop loss Rs.50. On the upper side, the stock will zoom up to Rs.65-70 in less than one month and Rs.90 in three months.
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