In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.
Long on Suven Life Sciences with a target of Rs 28.50 and a stop loss at Rs 26. I am maintaining this pick from yesterday. The company is doing well and what we quite like in particular is that the effort of the management to move up the value chain. It is this discovery of new value added compound that helped them register a 500 percent increase in net profit accompanied by an amazing increase in net sales as well in the previous quarter.
Long on Indian Oil Corporation with a target of Rs 340 and a stop loss at Rs 313. Now, the immediate trigger in the case of IOC would be a possible hike in diesel on February 17-18. That could add interest in this stock. Otherwise, also we feel this is a stock with like all other oil marketing companies where the downside is limited. The stock is under owned. It has a lot of fundamental strength. It is kept with the midcaps at a lower valuation because of the government policies in which there is a definite change. I think there is definite movement by the government towards deregulating this sector.
Long on Tilaknagar Industries with a target of Rs 77 and a stop loss at Rs 69.50. Tilaknagar is basically a manufacturer of Indian made foreign liquor. It has a very strong presence in the southern state of Andhra Pradesh, Karnataka, Tamil Nadu and Kerela. What we like about this company is the kind of growth which it is logging in. It has increased its distillation capacity by four times in the last two years. Over the last five-six years, from 2007 to now, its volumes have increased 10 times. So the kind of growth which it is logging in makes it a very attractive stock to track.
Long on Kwality Dairy with a target of Rs 38 and a stop loss at Rs 34.50. Kwality Dairy has typically been a very high beta stock if you look at its historical performance. But given the kind of performance which it is now generating, it is safe to assume that this stock would have a very good upside whenever the market again starts looking at midcap ideas. The company besides the good performance is also expanding in a big way. It is using cloud computing technique to improve its operational efficiency. It has also launched various variants of its dairy base brand in cottage cheese, yoghurt and various other categories.