In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.
Buy IndusInd Bank with a target of Rs 455 and stop loss of Rs 414. Bank reported better than expected results in Q3 and we believe that given the fact that the CASA ratio continues to be very healthy and going at a very robust pace and the bank enjoys very good asset quality. We feel within the private sector banks this is still presenting a very good investment opportunity.
Buy Sun TV with a target of Rs 475 and stop loss of Rs 428. Sun TV reported better than expected numbers in Q3 with a very smart 140 bps increase in the EBITDA margin. Ad revenue also seems to be improving. This along with the fact that the company enjoys a leadership position in the southern market with a wide variety of channels across the board is what makes us bullish. The company also enjoys a very lean cost structure and has a very extensive movie library.
Buy Unitech with a target of Rs 40 and stop loss of 35.50, Unitech has fallen sharply yesterday and we believe that any fall in Unitech is a very good buying opportunity. The company’s fundamentals have vastly improved over the last couple of years and its exit from the telecom business is what makes us bullish on this stock in the near term. Clearly the kind of land banks which they have and the kind of developments which they are doing calls for a rerating of the stock.
Buy McLeod Russel with a target of Rs 375 and stop loss of Rs 340. McLeod Russel is the largest producer of bulk tea in the world. There are two factors which are going to help this company report good numbers. Firstly the production in India has become sluggish while the consumption has gone up smartly by 2 percent. So that augers well for the prices of tea in the domestic market. Globally too there has been a flattish production of tea while consumption is increasing.