Buy Arvind 75 Put, says VK Sharma

Buy Arvind 75 Put at around Rs 2.3 and keep a stop loss of Re 1, says VK Sharma, HDFC Securities.

Sharma told CNBC-TV18, "Arvind was one of the weakest stocks and positions have been built on the short side. The stock went down by 3%, positions were added to the extent of 5% and puts are liquid here. So buy the 75 put at around Rs 2.3 and keep a stop loss of Re 1 and hope to make Rs 2.7 here. The stock is weak and could further go down to a level of may be Rs 68 or so."
The company's trailing 12-month (TTM) EPS was at Rs 5.30 per share. (Mar, 2012). The stock's price-to-earnings (P/E) ratio was 13.68. The latest book value of the company is Rs 74.73 per share. At current value, the price-to-book value of the company was 0.97.