Buy Tata Tea, GIC Housing, JK Tyre: Ashish Kapur

In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.

Buy Tata Global Beverage (Tata Tea) with a target of Rs 125 and a stoploss at Rs 115.50. Tata Global Beverages offers very strong growth potential due to increased consumption of healthy beverages both in India as well as globally. The company has a very strong footprint in various markets around the globe powered by various well established brands such as Tata Tetley, Good Earth, Himalaya and Eight O'Clock Coffee. Both as an investment idea and as a trading call this offers good capital appreciation potential. Buy GIC Housing with target of Rs 93 and a stoploss at Rs 86. Housing finance is one segment where growth has remained well established despite the overall economic slowdown and GIC Housing is a very well established player in this segment and is very well capitalized. So, is a very safe company to be with. Moreover the company is quoting at a very attractive valuation and has a very good dividend yield at the current price. Given all this we feel the downside is very limited. Buy JK Tyre with a target of Rs 100 and a stop loss at Rs 93. JK Tyres the big factor encouraging us to recommend the stock is that rubber constitutes, 70% of the raw material cost and with rubber prices going down, it’s a great boost for tyre companies. Moreover with the kind of auto sales which we have seen for the period 2007 to 2009, usually the replacement market picks up after a two year gap. So, we expect the replacement market to be very robust going forward. Long on IVRCL with a target of Rs 50 and a stoploss at Rs 46. Though IVRCL has been performing very badly over the last few quarters and with a kind of provisioning of bad debts the fundamentals are not very encouraging, yet the recent news development with a possible new partner coming in and also with the kind of order book which the company has and the previous history of very strong track record of execution of projects makes us feel that the worst is over.