I had advised to buy Uflex stock on 28th August 2010. This is around the time when stock was trading around 160 rupees per share. I believe that Uflex has run up a lot now, giving a close to 30% return in around 3 weeks and a profit booking move might come into play. Uflex Limited had a target of around 200 which it has crossed now and one can book profits in the stock on Monday. The stock might or might not rally more in short term but I guess it is better to secure your returns rather being greedy and attempt to make more off the stock.

If we look at the stock’s run up in the past 6 weeks, the stock has gone up 60-70% already and if we take a look at 6 months view, then the stock has more than doubled. This is a lot of up move in such a short term and if I’m not mistaken, I don’t see the stock going up a lot from current levels unless market breaks all time highs. I’d bet more on the undervalued stocks at current market levels than the already rallied ones.

Long term investors can continue to hold the stock because stock is still positive from a long term view, however short to medium term investors are supposed to book their profits in the stock now. I would also suggest you to keep the stock on the watch list, if the stock dips a lot in future, that will be a perfect opportunity to re enter the stock.

You can re enter the stock around 170-175 levels with targets of 200-210.

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