Bull's Eye: Buy Manappuram Finance, JBF Ind, Rolta

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.

Remember these are midcap ideas not just for the day, but stocks that look attractive in the medium-term as well. This week, SP Tulsian, sptulsian.com, Sharmila Joshi of Fairwealth Securities and Aashish Tater, Fort Share Broking battle it out for top honours. SP Tulsian, sptulsian.com Buy Manappuram Finance with a day target of Rs 34.50 and stop loss of Rs 32.50. The stock has been seeing relentless buying after having acquired 6% stake in the company and share is still ruling at a price to book of one time and PE of 4 times based on FY13 fundamentals. Buy PFC with a day target of Rs 179 and stop loss of Rs 172. The hopes of state electricity board debt restructuring will be seen quite positive for the company and will immensely benefit in rerating the stock and on fundamentals the share is ruling at a price to book of 1 and PE multiple of less than 7 based on FY13 earnings. Buy Sterlite Industries with a day target of Rs 103 and stoploss of Rs 98.50. The share is still ruling at an effective valuation of 52% of Sesa Goa in spite of a swap ratio of 3 shares of Sesa Goa for 5 shares held in Sterlite. In fact this should effectively make the share to rule at least at 56% of the share price of Sesa Goa. There is a room of an appreciation of 4-5% in the share price in the near term and seems to be a good arbitrage play for the investors. Sell Yes Bank with a day target of Rs 322 and stoploss at Rs 338. HSBC is likely to sell 1.7 crore shares being 4.75% stake held by them in the bank and this is likely to happen at or around Rs 320 per share which is making the shares looking technically weak and make it fall to around Rs 320 in the near term. _PAGEBREAK_ Sharmila Joshi, Fairwealth Securities Buy JBF Industries with a target of Rs 136.25 and a stoploss at Rs 130.50. We have seen the stock go through some amount of pain at the start of the year when we had concerns over their forex and derivative losses. I think slowly now the indications are that things are looking better as well as the fact that both their chip operations in India as well as UAE continue to look good. We would have a longer term target of around Rs 160-165 on the stock. Buy Sadbhav Engineering with a target of Rs 152 and a stoploss at Rs 145. Renewed hopes that greater order flows will kick in for infra as a space given the change in the Finance Minister and the fact that the new Finance Minister will want to speed things up for the sector as well as the fact that we have seen a couple of good order wins already coming in for Sadbhav Engineering. This is a stock for which we have a longer term target of close to Rs 175. Buy Escorts with a target of Rs 69 and a stoploss at Rs 66.40. This current quarter that’s going on is expected to be the best quarter for Escorts during the year given the business that they are in. Their merger with the subsidiary companies will be completed in July and this will add greater clarity going ahead. Also one has been hearing of some amount of buying of the outstanding equity by the promoters. So there is that added buzz on the stock. So this I buy with a target of Rs 69. Buy Tata Power with a target of Rs 101 and a stoploss at Rs 96.50. The news that power tariffs in the Delhi region could get increased by 24% has added a positive fillip to a lot of stocks within the space. Tata Power is a stock that had corrected significantly in the interim. I would expect it to drift back to levels of about Rs 115-120. _PAGEBREAK_ Aashish Tater, Fort Share Broking I am going long on Rolta for a target of Rs 82. The stock saw last minute buying and apart from that there is a strong buzz that the company might be paying its FCCB which happened even in Educomp which actually saw a spike of almost 30% so similar issue can be here where the stock has huge shorts. The short covering rally can even take the stock to Rs 90. However go long on this particular stock with a closing stop of around Rs 74. I am going long on Adani Enterprise for a target of Rs 240 expecting a short covering rally in today’s trade because the last minute buying that we saw into the stock – if the stock process its Rs 226 range the stock could be definite candidate for Rs 240 in the short term. I am going long on JSW Energy for a target of Rs 60 with a stop of around Rs 48. This is a technical call which we feel is achievable over the next 3-4 days. I am going long on Jain Irrigation for a target of Rs 85 with a closing stop of around Rs 77. There is a strong buzz in the market that the company has received an order worth a billion dollar which is executable over the next 12-18 months. This prestigious order would qualify the company of receiving similar kind of order in days to come because there are hardly 3-4 companies in the world which are expected to receive this kind of orders so if any thing positive happens from that side the stock would see definite short covering which might take the stock to Rs 90. In fact the chart has patterned out in making newer higher high and higher lows which is making a very interesting chart pattern and there could be a huge short covering rally which is due into the stock.