The bears are tightening their grip on the markets. Soft global cues and selling in stocks across sectors sent indices tumbling into the red for the fifth straight session. Nifty closed at 4,368 down 25 points, while  Sensex shut shop at 14,544 down 102 points.

Harendra Kumar, Head of Research at Centrum Capital is positive on Rolta, Shree Renuka and Everonn Systems. 

Here's how Harendra Kumar views the stocks on board:

On Rolta:

 Rolta is in a niche business space that is Geospatial Information Systems (GIS), Engineering design Services. Its order book is robust and it operates in areas where there is little volatility. It services municipality, governments. In the current economic environment, companies are largely derisked, more domestic with less dollar revenues. Secondly, it has a Joint Venture with Shaw Stone & Webster and that is going to see huge upsides if the nuclear deal goes through. Going forward being a large player in defence segment that is a big opportunity.

So prima facie it operates in areas where it has got strong domain knowledge, less volatility, high margins and in an area, which is growing.

On Shree Renuka:

The sugar cycle is likely to turnover in the next two years from losses we had seen in the last two years. We are looking at a situation where inventory levels are probably going to dip to around four months. Prices have run up because sugar prices have moved up but with the kind of intervention government is doing, we will see some amount of softening. Over a long-term, situation is going to become tighter and prices are going to remain firm.

If prices remain anywhere in the region of Rs 17-18, they are going to see some super normal profits and Shree Renuka Sugar has done good amount of capacity expansion. It has got 50% of its profit before interest and tax (PBIT) coming from non-cyclical businesses. So the play on sugar cycle as well as ethanol and a lot asset model with high return on equity (ROE), is one of our preferred bets in this space.

On Everonn Systems:
Everonn is growing pretty robustly and technology enabled education is seeing lot of acceptability and a significant traction on that front as well.

Today also there is an announcement that it is tied up with Indian Institute of Management (IIM), Indore for delivering education through VSAT Technology. So, that space is looking up and high capex initially but over a period the margins start improving. Lesser volatility in current economic environment and values would only start looking better going forward and that is one more reason why we like Everonn. 

Vijay Bhambwani of bsplindia.com is positive on Glenmark Pharma.

Here's how Vijay Bhambwani views the stocks on board:

On Glenmark Pharma:

This is a pure delivery-based play and I suggest buying in a falling market scenario at Rs 600-610 with some room for averaging at Rs 575 levels. I suggest a deep stop loss at Rs 540 levels and the stock has the potential to scale all the way upto Rs 800 levels in the next 12-15 months kind of a timeframe.

Daljeet Singh Kohli of Emkay Global Financial Services is positive on Sunil Hitech Engineers.

Here's how Daljeet Singh Kohli views the stocks on board:

On Sunil Hitech Engineers:

Sunil Hitech Engineers is more to do with the infrastructure related space and it is into fabrication, engineering, erection and commissioning of power plants. The good thing about this company is one that it has an excellent track record of past three-four years where it has shown its execution capabilities. This has been showing this 30-40% growth every year-on-year for past three-four years. So, that’s the one reason we like it.

Second thing is that this company has a very strong order book position of around Rs 800 crore which is around three-times of its FY08 sales. These orders have to be executed within 18-24 months and the good thing is that these orders are again diversified in nature. Some of them are from distribution; some are from generation companies and some from steel companies. The company recently has got an order of Rs 100 crore out of which Rs 90 crore is from NTPC and Rs 10 crore is from JSW Steel. So, that gives a visibility of companies revenues as well as its capability of executing different things.

Third thing is that the company is focusing on getting value added. So, it is focusing on Balance of Plant (BOP) projects that are balance of plant work. Out of total power project cost 40-45% will come from BOP, which this company is targeting at and it has shown the capability of taking over those challenges.

In FY08 the company has shown net sales growth of 112% and PAT growth of phenomenal of 178%. So, we are extremely bullish on the company’s performance. As per our meetings with the management, we have seen that they have the bandwidth to execute these projects. We have a target of FY09 sales of Rs 386 crore, which is very conservative target. Considering all sorts of input pressures, compression and EBITDA margins, we still feel that the company has a potential to earn around Rs 24 crore in this FY09, which gives us a DCF-based target rise of Rs 280.

Rahul Mohindar of viratechindia.com is positive on Reliance Infrastructure and Reliance Petroleum.

Here's how Rahul Mohindar views the stocks on board:

On Reliance stocks:

They have come down to a good support levels and have taken a bounce but not good enough to call it an up breakout. It’s not backed by the major indices so I do not see real support coming in by the overall market into the stock. If the market were to turn up the Reliance stocks are definitely going to be worth watching out for. Reliance Infrastructure and Reliance Petroleum are the ones, which have the greatest potential in this space.    

Reliance Power and Reliance Communications will continue to drift away. I do not see any major downside on R-Com but I do not see much more than a sideways price action in the forthcoming few weeks. So, from a short-term perspective stay away from both of those counters.

Vijay Bhambwani Disclosures:

I have no holdings in the stock discussed. 

Harendra Kumar Disclosures:

Personal holdings or clients positions would be there in these stocks.

Daljeet Singh Kohli Disclosure:

I personally do not hold any of these stocks but have recommended them to clients.