Go long in Escorts: IIFL

Go long in Escorts, says Manoj Murlidharan Vayalar, Associate Vice President-Derivatives, IIFL.

Murlidharan told CNBC-TV18, "We have a buy call Escorts, because needless to say we saw the block deal happening and not only on that the next day we have actually seen long built-up. Even on Friday’s trade there was some profit booking happening, but we feel the average price at which this activity in the last four days is happening somewhere close to Rs 79.80. So I guess more or less that should be a good level. You can actually go long with stop loss, let’s say at Rs 77 and we are expecting somewhere close to Rs 84-85 at least on that."
The company's trailing 12-month (TTM) EPS was at Rs 16.23 per share. (Dec, 2011). The stock's price-to-earnings (P/E) ratio was 4.75. The latest book value of the company is Rs 165.42 per share. At current value, the price-to-book value of the company was 0.47. The dividend yield of the company was 1.95%.