Buy Hindalco Industries 110 Call, says VK Sharma

Sharma told CNBC-TV18, "You can look at Hindalco Industries from two angles. One is there was a slight addition on the longer side. Stock went up increase in open interest and there is a positive divergence on the technical charts as well. So I am suggesting buying the 110 Call which was available at Rs 1.40 and that can be held on for the current series. There is a good distinct possibility that this Re 1 gamble on Hindalco could pay you off to the extent of 2-4 times of premium that you pay."

The company's trailing 12-month (TTM) EPS was at Rs 11.16 per share. (Jun, 2012). The stock's price-to-earnings (P/E) ratio was 9.34. The latest book value of the company is Rs 164.44 per share. At current value, the price-to-book value of the company was 0.63. The dividend yield of the company was 1.49%.