Buy REC, Hexaware Tech, Emami, United Phosphorous: Mukadam

In CNBC-TV18's popular show Bull's Eye, Shahina Mukadam of Varun Capital shares her trading strategies for the day.

One may buy Rural Electrification Corporation (REC) with a target of Rs 170. The company will report its numbers on Thursday. I am expecting a good set of numbers - a 20 percent plus type of growth in terms of profits. A number of states including Haryana are settling their dues and this should help the balance sheet quality of REC going forward. Non performing assets (NPA) also should be well under control. One may buy Hexaware Technologies. The numbers reported for June quarter were good. We saw a good revenue growth and a good strong margin expansion and the management came up with very good guidance for the full year. The depreciation in the rupee is positive for the company going forward. Unlike in the first quarter where it reported a forex loss, all these things put together we are seeing good buying coming in the stock. One may buy Emami with a target of Rs 495. The company will report its quarter numbers tomorrow and expect a good set of numbers with 20 percent plus type of revenues. We are seeing pretty good robust growth in terms of volumes as well as there is some strength coming in price where the company is able to pass on some cost increases. In terms of valuation after this correction that we saw in the last month the stock has become pretty attractive at current levels. One may buy United Phosphorous with a day target of Rs 135. The good monsoons are an additional positive for the current year. The company reported good numbers for the first quarter, June and we are seeing buying coming back into the stock.