Kotak maintains buy on Bombay Burmah Trading Corporation
The
stock price of Bombay Burmah Trading Corporation Limited (BBTC) in
Friday's trade breached our short term target price of Rs.1,130 to close
at Rs.1,239. Though the stock has moved up by 41% from our initiation
price within a short span of time, we continue to recommend a BUY on the
stock with another 6 to 12 months investment perspective with a revised
target price of Rs.1,486. Even after this impressive run-up,
the valuation discount to its investment in Britannia stands at 67% at
the current market price. However, the average of holding companies
(HCs) discount stands at around 50% only.