Buy Andhra Bank, Aditya Birla Nuvo, Sobha Developers: Kapur

In CNBC-TV18's popular show Bull's Eye, Ashish Kapur of Investshoppe shares trading strategy of the day.

Long on Andhra Bank with a target of Rs 98 and a stop loss at Rs 90. Andhra Bank remains one of the better managed banks in the public sector banking space and enjoys better operating efficiencies than the banking sector as a whole. Moreover the bank is available at a very attractive valuation. At the current level the dividend yield is 6 percent and the price/earning ratio is only 4 percent, so therefore the downside from these levels is extremely limited.
Long on Aditya Birla Nuvo with a target of Rs 1,030 and a stop loss at Rs 955. Aditya Birla Nuvo is a diverse conglomerate and has interest in various businesses including fertilizer, IT, telecom, retail. What we like about the company is that they are trying to get some focus areas. They are planning to get out of carbon black industry which will also help them earn a lot of revenue and cash flows which will help them increase their presence in other industries.
Long on Sobha Developers with a target of Rs 385 and a stop loss at Rs 350. Sobha is one of the very few real estate companies which are doing very well. The latest quarterly results were fantastic. Because of their focus in Bangalore in particular and South Indian market in general the company continues to benefit from rise in property prices in Bangalore and a very good product mix. Also they are cautiously reducing their dependence on Bangalore market. Their contribution from Chennai and Gurgaon is also increasing.
Long on McLeod Russel with a target of Rs 365 and a stop loss at Rs 340. McLeod Russel is the largest player in bulk tea and we feel that the tea industry is on verge of a secular uptrend owning to loss of crop at various places and overall increase in tea consumption world over. McLeod being the largest player and having a very significant presence in various markets would be the major beneficiary of this. This is our reason for being bullish and we are recommending a long here with a day target of Rs 365.