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Tata Power: Book profit
K Seshadari
February 28: Tata Power has closed at Rs 110. As the scrip has reached the targeted level predicted on Friday, you should consider booking profits. The profit booking decision gets influenced by the NSE closing on Tuesday. But for that the scrip could move up further to Rs 115 and later to Rs 120.So the right strategy would be to book profit and make a re-entry. It could be done at around Rs 110 for those who want to play safe. Those who would like to take risk could wait for it to move higher. A better strategy is to book profit and re-enter at close to Rs 105 again. The medium term investors could continue to hold, as with a bit of luck the scrip can go back to Rs 125, if the market is seized by a bullish fervour. The fervour will catch on closer to the election results.Tata Power's book value is Rs 123.fiscal 1997. Its gross profit margin was 23.7 per cent in contrast to BSES's 18.8 per cent. In terms of EPS, Tata Power earned Rs 9.9, and BSES Rs 14.8. BSES quotes at Rs 183. Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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