Buy HUL, Dr Reddy's Labs, Balaji Telefilms: Ashish Kapur
In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.
July 18, 2012 / 12:59 IST
In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.
Long position on Hindustan Unilever (HUL) with a target of Rs 465 and a stoploss at Rs 430. The entire FMCG space has been witnessing strong traction and has been an outperformer in the market over the last couple of quarters. In particular this quarter which has gone by is likely to witness strong encouraging results especially compared to the market as a whole. Most of the FMCG majors have affected price increases which would result in good growth in revenue. Along with that key input prices have come down which would help them sustain and even grow their margins. Long on Dr Reddy’s with a target of Rs 1790 and a stoploss at Rs 1655. This company for the last couple of quarters has been focusing more on the national markets after the acquisition of beta farm. Things are changing as its again coming back to the Indian market with a number of new product launches. Together with international operations this new increased focus on the domestic market augurs well for the near future. The company is also very active in launching various new APIs.Long position on Balaji Telefilms with a target of Rs 44 and a stop loss at 40.50. Though this company has not been doing particularly well but they have still managed to turn around their operations and have reported profits the last quarter. Also, their number of initiatives like launch of a training institute which will help reduce the man power shortage in the television and media industry. Also, they are setting up their own in-house distribution wing which will help it broaden its revenue stream.Short position on BEML with a target of Rs 353 and a stop loss at Rs 375. The entire capital goods and engineering space has been under lot of pressure. In particular BEML after the controversy over the Tata truck deal in which pay offs were made is in for bad times. We expect weakness to continue in this stock. Also, the metro business where the company has done huge investments is seeing traction but its still loss making. 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!
