Buy Dishman Pharma, Plethico Pharma:Rajesh Agarwal

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

Buy Amara Raja Batteries with an intraday stoploss of Rs 349 and a target of Rs 378. The company reported strong set of numbers on Tuesday. The net profit went up by around 95% and net sales jumped by around 32%. Although huge run up was seen on Tuesday itself but we feel that there is more to go. As far as performance is concerned both the automotive replacement market and the UPS segment is likely to visit double digit growth this year. Buy Dishman Pharmaceuticals and Chemicals. One can buy this stock with stop loss of Rs 89 and a target of Rs 97. The June quarter numbers have been quite good with net profit jumping by around 156% YoY. The company has commenced operation in Balva factory called Vitamin D3. Vitamin D3 is in short supply in the world and the company has taken a price revision of 50% recently. This is going to be reflected in the coming quarters. Buy Plethico Pharmaceuticals with an intraday stoploss of Rs 333 and target of Rs 352. This is a leading pharmaceutical company with focus on herbal and neutraceutical business. It has a strategy of expanding globally through acquisitions. The valuations are extremely attractive at around 8 times earnings, considering the fact the kind of business this company has and the kind of prospects this company has, we feel it is highly undervalued.
 
Buy SKS Microfinance with intraday stop loss of Rs 103, for a target of Rs 113. This company has been surrounded by whole lot of controversies, who lot of problems and we have seen the top management resigning but now things seem to be settling down. Q1 numbers were better with net loss going down by 82%. Management expects from Q3 onwards the bottomline to be into black.