RESPONSE TO READER'S QUERY: @NR 16/9/11; INDAG RUBBER

On the TECHNICALS, Indag Rubber has a fairly decent medium term Price Chart with an upward bias. On the downside, the first support is at 98 and then a stronger support at 92 levels. On the upside the first resistance is at 114 and then 117.

 On the FUNDAMENTALS, the Scrip looks pretty good and is a market leader in the Tyre retreads niche segment; it could do an EPS of about 30 odd this FY which puts it at about 3.6x FY12E. The main negative being thin trade volumes, low public float and upcoming capex which could impact the bottomline adversely in the future.

If one is okay with the above negatives, one could buy in at about 100 levels and hold for the long term.