Buy Apollo Hospitals, BHEL, Firstsource Solutions: Agarwal

In CNBC-TV18's popular show Bull's Eye, Rajesh Agarwal of Eastern Financiers shares his trading strategies for the day.

One may buy Sun Pharma Advanced Research Company (SPARC) with stoploss of Rs 125 and target of Rs 138. This company is engaged in pharma research and development and the company's core focus is innovation of new products for global markets. Over the last two quarters the numbers have been positive on the bottom-line and we believe that the trend is going to continue in the near term hence a buy call. One may buy Apollo Hospitals Enterprises with a stoploss of Rs 902 and target of Rs 950. This company has an integrated business model across the healthcare industry, they have the largest network of hospitals with around 6400 beds of their own and 2000 managed beds. They plan to add around 2600 beds in the next three years. They have Apollo Pharmacy which has around 1526 stores across the country and which is one of the largest branded pharmacy in India. One may buy Bharat Heavy Electricals (BHEL) with a stoploss of Rs 138 and target of Rs 148. With around 14 plants and eight service centers and a capacity to deliver around 20,000 megawatt per annum, this can be a very good long-term play. Although there are headwinds in the short-term but an unexecuted order book of around 1150 billion implying order book coverage of 2.5 times gives enough scope for appreciation. This can be one of the biggest beneficiaries of any turnaround in the micro economic environment of the country. One can buy Firstsource Solutions with a stoploss of Rs 15.50 and target of Rs 17.25. This company operates in the BPO segments and the first quarter numbers were quite attractive with PAT going up by 41.6 percent. With new management of Goenka we think things are likely to improve. Management has given guidance that in the next four years they are going to wipe out the entire debt. Even on valuation parameters with a PE of 6 the stock looks quite attractive.