Nov 21, 2012, 12.49 PM | Source: CNBC-TV18
In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.
Ashish Kapur (more)
CEO, Invest Shoppe India | Capital Expertise: Equity - Technical
Long on Bata India with a target of Rs 920 and a stop loss at Rs 850. Bata which is the largest footwear retailer in India has been doing very well in the last couple of quarters. The company has a very strong distribution network and we do not foresee any slow down in this segment despite the otherwise slow growth in economy. Besides doing very well the company is expanding its range of products and has introduced a number of smart new collections.
Long on City Union Bank with a target of Rs 65 and a stop loss at Rs 59. This bank enjoys very strong balance sheet, has a very good capital adequacy ratio, has very good quality of assets with net non performing assets with only 0.6 percent. The company has registered a very healthy growth in CASA. Given all this it is a very good take over target for any big bank wanting to enter into the Indian banking space.
Long on SKS Microfinance with a target of Rs 135 and a stop loss at Rs 123. This company has had a very rough patch over the last year, year and a half but at the current price we feel that the worst seems to have been already factored in. The company’s financials are likely to improve going forward, about 85 percent of the losses from Andhra Pradesh have been factored in and accounted for. Besides Andhra Pradesh the company has managed to retain its market share and restrict its losses.
Long on KRBL with a target of Rs 28 and a stop loss at Rs 25.30. KRBL is the largest rice player in this country in terms of install capacity and is present both in the basmati as well as the non basmati segments. The company has done very well in the last quarter results and has predicted a very good future growth expecting to double its revenue over the next two years and also become debt free in this process.