Maharashtra Scooters Ltd 27th Nov 2015
Maharashtra Scooters Share Price today was up by almost 12 percent. We have initiated our Buy & Hold call in Maharashtra Scooters Ltd at 1170 and we reiterate our target price of 3500+. In the short term there is a strong buzz of company going into voluntary liquidation and the intrinsic value per share is over 4000. If we look at the stock price or share price we get a sense that extremely strong hands are accumulating the stock and steadily the stock is going from weaker hands to stronger hands who have excellent holding potential. In view of the stock moving to stronger hands we see supply drying up and that in turn will create steady momentum for the stock.
Looking at the stock purely on a technical basis we see the stock had been consolidating and made a good base around 900-1000 and then broke out with extremely sharp volumes that itself was an indication that some serious news trigger is on the cards. Further after the stock rallied from base of 900-1000 it made a high of 1523 and then retraced on 1/10th volume to 1300-1330 area and now today once again it has rallied with significantly higher volume which technically means the charts are indicating extreme bullishness and as per charts we can expect a target price of 2800 very soon in 6 months’ time frame.
Our view is after looking at all aspects of the company is that it is a totally risk free investment with significant upsides and almost zero downside. The dividend payout for the stock is very good and looking at the recent developments we expect the stock price / share price to outperform the general Indian Stock markets.
Reiterate Buy & Hold Maharashtra Scooter on dips for target of 3500 in the next 18 Months.
Good Investing To You!