Sunidhi Securities is bullish on RSWM and has recommended buy rating on the stock with a target of Rs 165, in its August 5, 2010 research report.
"RSWM is likely to post an EPS of Rs 34 in FY11 and Rs 38 in FY12. At the CMP of Rs 129, the share is trading at a P/E of 3.8x on FY11E and 3.4x on FY12E. We recommend BUY with a target of Rs 165 in the medium term. The stock is currently moving within a 'rising channel' pattern (shown by the 2 rising trend lines). The 50% retracement level of its 2009-bear market at around Rs140-145 is the upside breakout zone while the 38.2% retracement level at around Rs105-110 is the downside support zone. An upside breakout should produce a short-term rally of up to Rs 170," says Sunidhi Securities research report.
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