Buy GMR Infra, YES Bank, Madras Cements: Jajoo

In CNBC-TV18's popular show Bull's Eye, Vishal Jajoo of Nirmal Bang shares his trading strategies for the day.

One may buy GMR Infrastructure. Like all other infrastructure plays, GMR Infra also has its own set of problems with regards to overleveraged balance sheet. However, the positive side is the stock has been punished much more than what it deserves and the management has taken cognizance of the fact and they are gradually offloading the non-core assets to reduce their debt. Going forward, they have reduced their target of having a debt equity ratio of 2.5. Even if they achieve a portion of it if not full of it, the stock deserves some kind of positive attention at this juncture clearly from a trading perspective. The target for the day is Rs 21.50. One may buy YES Bank. It has very high level of wholesale funding; the CASA ratio stands at 20 percent. However, it is the first bank to take the benefit of the Reserve Bank of India's (RBI) facility to have raised money overseas in dollar denominated bonds. Therefore I think that the bank is rightly placed and the correction that we have seen in the stock from levels of Rs 530 to the present level, I think the stock has got some more steam left and therefore a buy call on YES Bank. One may buy Firstsource Solutions. With the new management of CESC coming to picture and giving a guidance as to the plans with regards to reducing the debt significantly or more or less becoming debt free over the next four years coupled with the improvement in the quarterly earnings over the last two quarters, I think this stock has got a long way to go. I will not be surprised if the management achieves its targets looking at its past track record with regards to their group companies and with regards to their earnings and the valuations at which it is quoting right now which is six times one year forward earnings. This stock should turn out to be a big multibagger going forward. One can buy on Madras Cements with a target price of Rs 174. It is one of the most efficient cement players in South India and the fact is that it has got lowest exposure to volatile markets of Andhra Pradesh that provides some sort of stability to it. It is the largest player in South India and one of the most efficient cement players in the country. The stock has corrected heavily from a high of Rs 270 to the present levels of around Rs 170 levels.