Buy SKS Micro, Fairfield Atlas, Mastek: Rajesh Agarwal

In CNBC-TV18's popular show Bull's Eye, Rajesh Agarwal, Eastern Financiers shares trading strategy of the day.

Buy SKS Micro with a revised stoploss of Rs 114 and target of Rs 128. Buy Fairfield Atlas. One can buy this with a stop loss of Rs 162 and target of Rs 184. With foreign promoter holding around 84% in this company, this is a strong de-listing candidate. The parent is very strong with operations in around 38 countries, has enviable top clients which includes Tata Motors, John Deere, Mahindra’s. The numbers were pretty good with June sales going up by around 32% and PAT up by 176%. Buy Mastek with a stop loss of Rs 162 and target of Rs 184. The numbers have been quite outstanding with around 48% jump in top line. Bottom-line they showed a profit of Rs 22 crore against a loss of Rs 7.7 crore. EBITDA margins have gone up. They are currently at 13.6% as against 9.3% in the last year on year quarter. Strong growth has been witnessed into North American market and we believe that this growth is going to continue at least for the next two quarters. Buy Autoline Industries. One can buy this with a stop loss of Rs 142 and a target of Rs 156. This is basically an auto ancillary industry which is present in domestic as well as export markets. With operations commencing in Tata Motors Dharwad plant and supply starting by next year, by Autoline this would be a big positive for this company. The company holds a land which is valued around Rs 110 crore and they plan to monetize this land which would be used to reduce debt and that would be a bit positive for the company.