Buy Orchid Chemicals, SKS Micro, Punj Lloyd: Agarwal

In CNBC-TV18's popular show Bull's Eye, Rajesh Agarwal, Eastern Financiers shares trading strategy of the day.

One can buy Orchid Chemicals with a stop loss of Rs 55 and a target of Rs 61. With the management hopeful of concluding the Hospira deal we believe that he would rack in around Rs 1000 crore for the company and that would reduce the interest burden by around Rs 100 crore and help in improving the working capital scenario.
One can buy SKS Micro with a stop loss of Rs 139 and a target of Rs 149. With the valuations correcting by almost 90 percent from its peak and the change in management we feel it is a matter of time when the stock gets re-rated. The company has shown turn around in December quarter. Also the bottom-line was around Rs 1 crore or so but still it has come into black. Management has indicated a earnings per share (EPS) of around Rs 8 for FY14 and if we give a valuation of 20 times the price target comes to Rs 160.
One can buy Punj Lloyd with a stop loss of Rs 43 and a target of Rs 49. The company has been plagued with problems associated with infrastructure sector and they have reported a massive drop in bottom-line of around 7.5 percent in the December quarter but this was just because of the high interest cost. The order book is quite exciting about Rs 23,690 crore as on December 2012.
One can buy Housing Development & Infrastructure Ltd (HDIL)with a stop loss of Rs 64 and a target price of Rs 71. The counter has been witnessing selling pressure from the last few trading sessions and has been in a range with downward bias. But yesterday’s price action and volume actions shows that it is trying to break above the channel.