Buy Gujarat Fluorochemicals, says Sukhani

Buy Gujarat Fluorochemicals, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "Gujarat Fluorochemicals has come in our short list repeatedly. It has fallen like 9-pins. That seems to be getting over. It is now making a basing pattern and giving us a bullish head and shoulder pattern with a confirmed breakout. That is the beginning of what I assume is an intermediate uptrend and these patterns are coming slowly in some of the other stocks, hence the sense that perhaps this market has some headroom before it starts going into a consolidation.”

He further added, “Gujarat Fluoro is an intermediate term buying opportunity. Day traders should go long in it. Position traders should build positions here."

The share touched its 52-week high Rs 542.20 and 52-week low Rs 250.05 on 02 April, 2012 and 14 February, 2013, respectively. Currently, it is trading 44.62% below its 52-week high and 20.08% above its 52-week low. Market capitalisation stands at Rs 3,298.25 crore.

The company's trailing 12-month (TTM) EPS was at Rs 43.37 per share. (Dec, 2012). The stock's price-to-earnings (P/E) ratio was 6.92. The latest book value of the company is Rs 194.97 per share. At current value, the price-to-book value of the company was 1.54. The dividend yield of the company was 1.17%.

Disclosure: I have no holdings in the stock discussed.