Buy Kotak Mahindra, Glenmark Pharma, MindTree: Ashish Kapur

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

Buy Kotak Mahindra Bank with a target of Rs 633 and a stoploss at Rs 585. This bank has been doing quite well despite difficult economic conditions. The loan growth has been an impressive 33%. Going ahead also we expect a 25% average growth in loans to sustain. The bank has also improved its CASA ratio by 200 bps. Asset quality is fairly comfortable.
Long position on Glenmark Pharma with a target of Rs 400 and a stoploss at Rs 370. Glenmark Pharma after very long time has stabilised its operation and we are seeing good traction in its earnings going forward. The company would post good Q1 numbers on two accounts. First the benefits from the rupee depreciation and secondly a number of their operations in different markets have started yielding results. The company is about to launch its operation in the Mexican market which we are very bullish on.
Buy MindTree with a target of Rs 690 and a stop loss at Rs 637. MindTree is one IT services company which has been doing fairly well. In particular they have improved their margin position very well which is very comforting and this is mainly on back of good strategy on employee front as well as rupee depreciation. Going forward we are very bullish on the operations of MindTree. In particular they are in partnership with Netherlands, the IT and communication giant KPN.
Short position on Crompton Greaves with a target of Rs 119 and a stoploss at Rs 130. Though this stock has fallen a lot over the last one year we feel that weakness will still persist mainly because of very negative external environment in terms of various policy and procedural delays by the government. Very weak order inflow is likely to further dampen the profitability going forward. This quarter results are likely to be fairly muted.