Buy Colgate, TTK Prestige, Bata India: Ashish Kapur
In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.
August 07, 2012 / 12:15 IST
In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.
Buy Colgate Palmolive with a target of Rs 1255 and a stop loss of Rs 1160. My rationale for retaining this from yesterdays pick is that this is one stock at the defensive space which has reported very encouraging numbers in the previous quarter and we expect this performance to continue. The company is investing Rs 54 crore to ramp up its toothbrush and toothpaste capacities. They are also setting up new production capacities in Gujarat and Andhra Pradesh and being in the defensive space one can be sure that there won't be any major negative surprise. Buy TTK Prestige with a target of Rs 3930 and a stop loss of Rs 3630. This stock continues to do very well and we expect their performance to sustain going forward. The company expects to grow at 25% in this fiscal and given the kind of capacities which they are increasing, we expect the management to maintain its target and achieve it.Buy Bata India with a target of Rs 965 and a stop loss of Rs 892. Rationale for going long in Bata is that again the company is doing very well. It is aggressively opening new stores and going forward we expect this performance to sustain. Again being in the consumption space it is in that part of the economy which is still doing well. So therefore we expect no major negative surprise coming here and the performance to sustain regardless of where the overall market sentiment goes. Short BGR Energy August with a target price of Rs 270 and stop loss of Rs 293. Rationale for going short on BGR Energy is that it is on the capital goods space where lot of margin pressure is being felt. This company in particular is getting beaten down very badly in its performance. The management has scaled down its earnings guidance and on various fronts the margin pressure is very evident. Lot of new orders is getting cancelled. Given all this background it is safe to assume that any weakness in the market would result in a sharp drop in this stock.Disclosure: I have holdings in Colgate, TTK Prestige and Bata India. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
