Buy Jyothy Labs, SREI Infra, Electrosteel Casting: Kapur

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

Long on Jyothy Laboratories with a target of Rs 157 and a stop loss at Rs 142. Jyothy Laboratories is in the process of integrating patients and products of Henkel, a company which it took over sometime back. The management expects that by March this year, most of this integration process will be through resulting in a major upswing in both revenue as well as margins. The company is also going in for various other strategies like channel distribution rationalisation and various other strategies to improve its margin and visibility of its products.

Long on SREI Infrastructure with a target of Rs 40 and a stop loss at Rs 36. Financing business of this company is doing very well and the last few quarter results have been very encouraging. Moreover, the management has forecasted a growth of about 50 percent over the next couple of years in its profitability. The company also has benefited from the merger with Quippo Infrastructure Equipment which has raised its network by three times. We also are bullish on the fact that the company owns a lot of equity in various joint venture in subsidiary companies.

Long on Electrosteel Casting with a target of Rs 26 and a stop loss at Rs 23.30. This manufacture of ductile iron (DI), cast iron (CI) pipes has been doing very well and the latest quarter results were also encouraging. We are bullish on this company because we feel that their strategy of going in for a fully integrated business model is something which will pay off very well in future. The company is moving backward into mining and they have got some allocation of coal mines. They are also beefing up their infrastructure to reduce cost and going forward they are also getting into manufacturing of steel through their asset company Electrosteel Steels Ltd (ESL).

Short Bharat Forge with a target of Rs 205 and a stop loss at Rs 224. This clearly is a market which is punishing stocks, which are disappointing in their results. Bharat Forge is no exception; the results which came out on Friday are very disappointing. Not only has the profitability come down but it has marred the hopes of all investors because the management had given a positive view on this quarter earlier. So, given that we feel it is a good stock to go short on.