Buzzing stock - ARSS Infrastructure

ARSS Infrastructure recently came out with an IPO at a price of Rs.350. The issue was well subscribed and listed spectacularly at Rs.650. Currently the price is around Rs.1300, up more than 300% , so what's the buzz?

To start with, the IPO pricing was done wisely and it left a lot on the table for the investors. The company recently declared the current year's earnings and is well within market expectations. They have done about Rs.60 earnings per share and current price it is well priced at 20 times.

So moving forward, the company is expected to do about an EPS of Rs.110 for FY11 and considering at the industry average P/E of 15 times, the stock is more or less priced in.
Hence one can book profits in ARSS Infra considering its sharp run-up from 700 to current levels of 1300 and wait for substantial correction before re-entering this stock.