Buy Sun Pharma Adv, Idea Cellular, Tata Motors: D Cunha

In CNBC-TV18's popular show Bull's Eye, Lancelot D Cunha of ITI Wealth Management shares his trading strategies for the day.

One can buy Sun Pharma Advanced Research Company. It has recently filed new drug applications (NDAs) for two products and its approvals are expected in the coming months. The company has a pipeline of Novel Drug Delivery Systems (NDDS) as well as a new chemical entity which could give it long-term cash flows and significant profits. In the short run there has been significant accumulation. We have seen the stock move up on good volumes and given that we are on the settlement for Futures and we could see some significant upmove from here. One may buy Speciality Restaurants. It has recently seen a massive correction from its peak for Rs 180-190 to current levels of Rs 120. Given that margins are likely to be compressed and the growth is likely to slowdown, however, the stock is now looking attractive from valuation perspective, trades at about five times its FY15 EV/EBITDA which is fairly attractive for a high growth company like Speciality Restaurants. We have seen some accumulation in the last one-two days and some interested buying could probably take the stock price up to its target price of Rs 138.90. One may buy Idea Cellular. It has recently been in news for carrying on road shows for a possible stake sale in the company. The valuations that are expected to be placed before the prospective investors at significant premium to the share prices, which is why there is some interested buying happening and given that it is the last day of the Futures and Options (F&O) expiry, we could see the stock move up a bit and hit its target price of Rs 174. One can buy Tata Motors. It has been in the news given that the Jaguar Land Rover (JLR) story could play out a bit further since the international market for JLR brand is improving significantly and margins have being maintained though the domestic side of the business is seeing a slowdown, the valuations overall are attractive because the stock trades at about seven times of its FY15 EV/EBITDA and that looks attractive for a company like JLR.