Buy NHPC on decline; target Rs 26, says Kulkarni

Shardul Kulkarni of Angel Broking is of the view that, one can buy NHPC on decline with a stop loss of Rs 24.7 for the target price of Rs 26.

Kulkarni told CNBC-TV18, "NHPC has been in a strong higher top-higher bottom cycle. The stock moved from Rs 70 to Rs 26 and it is still possible that the stock can move towards Rs 27.5 to Rs 28. So I would look at buying into this decline which is overall Rs 26-24.8. Place a stop loss just below the previous low, which is around Rs 24.7 and one can go long at current prices. I would look at a potential target of Rs 26 at least over the next four-six trading sessions in case of NHPC." The company's trailing 12-month (TTM) EPS was at Rs 2.01 per share. (Sep, 2012). The stock's price-to-earnings (P/E) ratio was 12.61. The latest book value of the company is Rs 21.42 per share. At current value, the price-to-book value of the company was 1.18. The dividend yield of the company was 2.76%.