Buy Polaris, Delta Corp, Den Networks, Jyothy Labs: 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 Polaris Financial Technology. With the recent rally that we have seen in frontline IT stocks, the midcap space has not at all participated in this rally. We expect that with the recent announcements plus this underperformance of the midcap IT space, Polaris appears to be a classic fit in this category and therefore a buy call on it. One may buy Delta Corp. We have been recommending Delta Corp since long and this year would be a year of reaping the benefits of what Delta has been doing over the last two-three years. In the month of August, they commenced their second vessel which is the largest vessel in India and it is on path to increase its gaming capacity by five fold this year which will not only lead to revenues increasing by that proportion but being a fixed cost business model, the earnings are set to grow exponentially over FY14-FY15. Therefore for the longer-terms we have much higher targets in 3-digits probably but for the day the target is Rs 65. One may buy Den Networks. With a subscriber base of 13 million, consisting of 5 million digital subscribers and the recent positive news coming in that company, this space seems to see a lot of action and Den Networks is a classic candidate. Therefore, the target for the day is Rs 189. One may buy Jyothy Laboratories. We have been reiterating the fact that this is the cheapest fast moving consumer goods (FMCG) stock in this space. Seven power brands amongst the 10 brands, the new management team is definitely showing some action, which is getting reflected in their quarterly results. In spite of 4 percent year-on-year (Y-o-Y) increase in advertising spends in Q1, there was a 300 bps improvement in margins. This is commendable in the present scenario on the back of good monsoons that we have seen this year. I think Jyothy Laboratories amongst the FMCG space would be a key beneficiary. Target for the day is Rs 158.