Go long in Glenmark, target of Rs 540: Jai Bala

Jai Bala of cashthechaos.com advised taking long positions in Glenmark Pharma. He expects a target of Rs 540 on the stock.

Bala told CNBC-TV18, "The long-term charts of Glenmark Pharma is looking quite attractive and it does look like it still has one more high to come through. So the bounce from yesterday's low seems like it started the next leg of the upmove. So, one can place a stop blow Rs 480 or something closer to Rs 475 and trade long expecting a target of Rs 540 on Glenmark Pharma." The share touched its 52-week high Rs 550.80 and 52-week low Rs 301.20 on 09 January, 2013 and 23 March, 2012, respectively. Currently, it is trading 9.78% below its 52-week high and 64.99% above its 52-week low. Market capitalisation stands at Rs 13,460.07 crore. The company's trailing 12-month (TTM) EPS was at Rs 7.86 per share. (Dec, 2012). The stock's price-to-earnings (P/E) ratio was 63.23. The latest book value of the company is Rs 80.70 per share. At current value, the price-to-book value of the company was 6.16. The dividend yield of the company was 0.4%.