Buy Venkys, Dabur India, Unichem Lab: Rajesh Agarwal

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

The first stock in our list today is 20 Microns. One can buy this with a stop loss of Rs 114 and a target of Rs 123. One can buy Venkys with an intraday stop loss of Rs 529 and a target of Rs 572. This company as we all know is basically into poultry business and the huge consumption demand is helping this company to give outstanding numbers. The tie-up with KFC is a huge positive. Even they have lined up some modernization and expansion plan that’s going to help them in the long run. First quarter numbers were quite impressive with around 94% jump in PAT on 40% top-line growth. One can buy Dabur India with an intraday stop loss of Rs 119 and a target of Rs 127. The first quarter numbers were very good with both top-line and bottom-line growing by around 21%. The international business has been doing well specially from Egypt and Nigeria side. Continuous thrust on new launches, rural focus and advertisement expenses is helping this company. One can buy Unichem Lab with a stop loss of Rs 158 and a target of Rs 174. This company is an integrated pharmaceutical company which is basically into formulations and API. It’s present in areas like cardiology, neurology, orthopaedics and anti-infectives. June quarter numbers were quite impressive with PAT growing by around 112% and top-line growing by 41%. At 12 times FY13 earnings the stock is highly undervalued when we compared to its peer group companies, hence a buy call.