Buy KPIT Cummins, Polaris, KCP Sugar: SP Tulsian

In CNBC-TV18's popular show Bull's Eye, SP Tulsian, sptulsian.com shares trading strategy of the day.

Buy KPIT Cummins with a day target of Rs 146 and stoploss of Rs 123. The company has shown robust Q1 performance with a growth of 12% on top line and 20% in profit before tax on a sequential basis. The stock is seen in the strong trading hands because the stock has been virtually ruling at its 52 week high and the same momentum is likely to continue after these results and hence a buy call. Buy Polaris with a day target of Rs 123 and a stoploss of Rs 112. This midcap technology company has also shown robust numbers with growth of 9% in topline and 20% in EBITDA on a sequential basis. The share is now ruling at a PE multiple of just five times which is likely to attract the fundamental investments into the stock. Buy KCP Sugar with a day target of Rs 21.50 and stop loss of Rs 19.50. This Andhra Pradesh based sugar mill has been carrying an inventory of over Rs 200 crore as on 31st March 2012. All the southern based mills are realising very good realisations of the sugar at about Rs 33 per kilogram while all these stocks were valued at much lower rate of about Rs 26-27 per kilogram. Going ahead, the sugar cycle is seen to be quite good especially for the south based sugar mills. Buy Ugar Sugar with a day target of Rs 16.50 and stoploss of Rs 14.90. This Karnataka based sugar mill is also carrying an inventory of over Rs 300 crore as on 31st March, 2012. The kind of upsurge which we have seen in sugar realisations are likely to see bumper results getting posted by these companies for Q1 as well as for the coming quarters. The sugar cycle is all also seen to be quite robust going ahead. This company also has good amount of earnings from the cogen operations due to better realisations of the power.