May 24, 2012 01:41 PM IST | Source: CNBC-TV18

Bull's Eye: Buy TCS, JP Associates, Cox & Kings, DHFL

Bull's Eye, CNBC-TV18's popular game show, where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.

Bull's Eye, CNBC-TV18's popular game show, where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.

Remember these are midcap ideas not just for the day, but stocks that look attractive in the medium-term as well.

This week, Aashish Tater of Fort Share Broking, Sharmila Joshi of Fairwealth Securities and Lancelot D Cunha of Sharyans Wealth Management battle it out for top honours

Aashish Tater, Fort Share Broking

Buy Tata Global with a target of Rs 108.80 and keep a stoploss at Rs 106.80. This is one portfolio bet which we feel has got potential if someone has got time horizon of next 2-3 years. Globally peers have been values at 2-3 times market cap to sales and Tata Global Beverage proxy to what Star Bucks or even Pepsi and Coco-Cola is, is valued at just 1 time market cap to sales. So this is one candidate that can be looked down from a longer term perspective.

Buy Jaiprakash Associates with a target of Rs 62.50 and keep a stoploss at Rs 60.65. There is a media report which says that there is quite a possibility that FCCB would be returned by the company which could be taken positive and even the stock might be upgraded at brokerage level. Thus we feel if there is any such kind of development then there is a possible chance that the stock would go and test that Rs 66-68 mark. However I am going long on this stock only from a technical perspective for a target of Rs 62.50. Fundamentally we are neutral on the stock.

Buy Arvind with a target of Rs 77 and keep a stoploss at Rs 75. We saw some last moment buying on the stock and we feel there could be a continued momentum and if I see that rupee-dollar equation this might be beneficial for textile companies even going forward. Thus despite poor results there could be a technical snack in today’s trade on upward bias for a target of Rs 77.

Buy BHEL with a target of Rs 212 and keep a stoploss at Rs 208. We expect results and guidance which would be better than what market analysts have been expecting. Thus we have a medium term target on a stock of close to Rs 248 mark. However if the stock closes below Rs 202 then close your positional target of Rs 248. Fundamentally we see hardly 10% downside on to the stock but a potential upside in days to come.

Disclaimer: He doesn't hold any stock discussed but may have recommended them to clients.

_PAGEBREAK_

Sharmila Joshi, Fairwealth Securities

Buy Opto Circuits with a target of Rs 180 and keep a stoploss at Rs 172.50. We have had numbers from Opto Circuits just as market was closing. Yes there is a tax right back element but even if you account for that a good set of numbers from Opto Circuits and this is one of those niche midcap kind of plays which should do well irrespective of other conditions. They are into medical equipments and they have got a pipeline that’s growing really well. So this is a stock that I like in the midcap space.

Buy Mahindra Satyam with a target of Rs 74 and keep a stoploss at Rs 71. Its time for the portfolio to have a little bit of an IT flavor largely because of the way the rupee has been behaving because this is one sector that outright would benefit from a depreciating rupee plus numbers from Mahindra Satyam were very encouraging. So given both that I buy this with a target of Rs 74 and stop loss at Rs 71. I do think that you can stay invested in this stock with a slightly longer term target of about Rs 93.

Buy Shasun Pharma with a target of Rs 122 and keep a stoploss at Rs 118. The numbers are expected on Thursday. Once again a stock that’s been doing really well for itself and given their capex plans as well as some of the earlier moves and measures that they have taken are now all falling into place for the stock. So this is a stock that in fact already has been a multi bagger but I see it moving up further from here.

Buy TCS with a target of Rs 1,244 and keep a stoploss at Rs 1,212 because I think perhaps IT is the one sector that can provide you with a little bit of safety in a market like this and let us not forget IT as a sector has not participated at all from the start of the year. These stocks if you compare them with the levels that they were at earlier are trading lower plus TCS is one stock that has given a reasonable good guidance going ahead and have said that they will grow at better than what the industry will grow. So this is a stock that I like.

Disclaimer: She holds TCS. Stocks discussed may have been recommended to clients.

_PAGEBREAK_

Lancelot D Cunha, Sharyans Wealth Management

Buy Cox & Kings with a target price of Rs 147.90 and keep a stoploss at Rs 138. It has shown considerable strengthen in the last few days inspite of the fact that it had fallen from its peak to as low as Rs 125 and the stock is now moving upwards. I believe that the current momentum should be positive for the stock and given the fact that the currency rupee depreciation does not impact the performance as much because a large portion of its business is based out of their overseas European subsidy.

Buy Dewan Housing with a target price of Rs 187.80 and keep a stoploss at Rs 175. It has been moving up in the last few days and has shown good volumes. The stock had recently fallen inspite of very good quarterly numbers. It has a loan book growth of 30% and the NPAs have actually dropped during this period. So given the fact that it also looks attractive from a long term perspective and it has been moving up on a trading basis over the last 2-3 days it has now broken out above a level where it could move up to its target price of Rs 187.80

Buy Aurobindo Pharma with a target price of Rs 113 and keep a stoploss at Rs 107. Aurobindo Pharma had fallen considerably when its plant was banned by the US FDA. Since then this ban has been removed and we should expect better numbers from Aurobindo Pharma whose results are expected on May 29th. So that should be positive.

Buy call on Tata Power with a target of Rs 95.50 and stop loss of Rs 86.

Disclaimer: He doesn't hold any stock discussed but may have recommended them to clients.

Sections
Follow us on
Available On