VK Sharma, Head Private Broking & Wealth Management, HDFC Securities is of the view that one can buy 80 call of Chambal Fertilisers at around Rs 2.
Sharma told CNBC-TV18, "Positions were not added in Chambal Fertilisers. Almost 13% positions were pruned and the market went up by 3%. So I am suggesting buying the 80 call at around Rs 2, keep a small stop loss of Re 1 and hope to make Rs 3 on this in terms of having the ability to sell the 80 call at Rs 5 sometimes later in the series. My sense is some kind of policy action on the urea front could be there after the presidential elections are over."
The company's trailing 12-month (TTM) EPS was at Rs 5.94 per share. (Mar, 2012). The stock's price-to-earnings (P/E) ratio was 13.38. The latest book value of the company is Rs 44.94 per share. At current value, the price-to-book value of the company was 1.77. The dividend yield of the company was 2.39%.
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