Short HDIL, says VK Sharma

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Short HDIL , says VK Sharma of HDFC Securities.

Sharma told CNBC-TV18, "I am shorting HDIL. I have a very small target of Rs 293. My own sense is that investors need to be very nimble footed when they want to short in a stock, which the market have to be opening down. So if you don't succeed in the first two minutes then obviously you have to ensure the trade."

He further added, "On Friday also when the market was up, we have seen in the derivatives segment of shorts to the extent of 5% and also the stock was down primarily because some kind of disappointment with the way in which the QIP was postponed."

HDIL has touched an intraday high of Rs 294.70 and an intraday low of Rs 286.00. At 12:25 hrs the share was quoting at Rs 287.30, down Rs 11.95, or 3.99%. On Friday the share closed down 1.21% or Rs 3.65 at Rs 299.25.

The company touched its 52 week high Rs 410.80 and 52 week low Rs 75.50 on 22 Oct, 2009 and 20 Mar, 2009, respectively. Currently, it is trading -30.06% below its 52-week high and 280.53% above its 52-week low. Market capitalisation stands at Rs 9,936.06 crore.

The company's trailing 12-month (TTM) EPS was at Rs 13.90 per share. The stock's price-to-earnings (P/E) ratio was 20.67. The latest book value of the company is Rs 131.22 per share. At current value, the price-to-book value of the company was 2.19.