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Apr 24, 2012, 12.15 PM IST
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, Rajesh Agarwal of Eastern Financiers, Ashish Kapur of Investshoppe and Lancelot D Cunha of ITI Wealth Management battle it out for top honours.
Below their top stock picks and analysis:
Rajesh Agarwal of Eastern Financiers
We would like to recommend Banco Products for intraday with a stop loss of Rs 68 and a target of Rs 78. Buoyancy in auto segment is likely to aid to the performance of this company in coming quarters. The numbers have been quite good. Even the European subsidiary has been doing very well considering the fact that European CV (Commercial Vehicle) segment is doing well. December quarter numbers have been very impressive with around 28% jump in top-line and around 58% jump in bottom-line. Currently trading at a PE of less that 6, the counter looks quite impressive and hence we recommend a buy.
The second stock is Asahi India . This again is from the auto ancillary segment. The first nine months numbers have been not that good because of the slowdown in auto sector and raw material cost as we all know but going forward considering the buoyancy in auto sector once again we believe that these kind of companies are going to do well. On the valuation parameter also it’s trading at a very low valuation. Hence we recommend this for a buy. For intraday one can buy this with a stop loss of Rs 66 with a target of Rs 74.
The third stock in our list today is Swan Energy . One can buy this with a stop loss of Rs 121 and a target of Rs 137. They are one of the largest shareholder in GSPC, Gujarat State Pipavav Power Projects with around 49% stake. The deal has been structured in such a way that the carbon credits arising out of the project, 70% of the CER (Certified Emission Reduction) would be given to Swan Energy for the next 10 years and that’s going to be a trigger for this stock. We think that with the promoters holding around 76% and a small equity base of Rs 19 crore, the floating stock is also very low and hence we think this stock can give good returns in the short to medium-term.
The fourth and the last stock is Pitti Laminations . One can buy this with a stop loss of Rs 81 and a target of Rs 94. This company manufactures electrical lamination which is used in defense, aerospace and all those sectors and GE is their main client. 50% of their product is exported. They reported strong numbers in December quarter. Top-line grew by 52% and PAT grew by almost 134%. Valuations are very attractive with PE of less than 6 and price-to-book value of 1. Hence we recommend this as a buy.
Tags: Bull's Eye, Rajesh Agarwal of Eastern Financiers, Ashish Kapur of Investshoppe, Lancelot D Cunha of ITI Wealth Management, Banco Products, Swan Energy, Asahi India, Pitti Lamination, HUL, Apollo Tyres, UCO Bank, Patel Engg, DCB, Petronet LNG, West Coast Paper, ING Vysya Bank
May 22 2013, 13:11
- in MARKET OUTLOOK
May 22 2013, 10:44
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