Bull's Eye: Buy Escorts, SAIL, Reliance Capital

Bull's Eye, CNBC-TV18's popular game show, where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.

This week, Jagannadham Thununguntla of SMC Global, Nooresh Merani of AMSEC and Madhumita Ghosh of Unicon battle it out for top honours. Below their top stock picks and analysis: Jagannadham Thununguntla, SMC Global "Escorts has about 13% market share in the Indian tractor business. Escort has batted very badly on the back drop of slowdown in the economy as well as in the interest rate fierce but I believe the stock is offering excellent valuation now with about 5 PE multiple the company does give dividend on that is a significant player with promoters having about 28%. If there are any consolidation opportunities in this space I am sure it will be a bet going forward. I think over a medium term the stock can easily see Rs 120-150 level. The stock is selected for the day with a day target price of Rs 85.90." "Crompton Greaves with a day target price of Rs 136.80. The stock was under tremendous pressure after the margin squeeze and loosing some market share and management related uncertainty etc but I believe considering its brand and it's positioning in the overall industry I feel the problems were a little overdone. I think probably there is a chance that the stock may see revival and once the wave of positive comes probably the stock can easily double. The stock has fallen all the way from Rs 350 to Rs 110-120 levels and the stock is already in the rebound mode. I feel the revival may be just on the cuts." "There are lots of concerns about infrastructure stocks and most of them have underperformed and the company still is able to bag the new orders. IRB Infra is selected for the day with a day target price of Rs 157.80 on the buy side. In general infrastructure stocks may remain under pressure." "BGR Energy Systems is having about Rs 12000 crore of order book. The company is still growing. The problems on the margins squeeze, problems from the slowdown in the order book have definitely shown up on the share price and have already been factored in and the stock has fallen all the way from Rs 835 levels to the current levels of about Rs 270. The stock is in the revival mood and there was also concern on the corporate governance and on the taxation front. But even considering all those concerns a PE multiple of 7-8 PE multiple is under valuation from the order book perspective. The stock is selected with a day target of Rs 278.80.