Indiabulls Financial has potential to touch Rs 310: Fortune

Abhishek Agarwal of Fortune Interfinance feels that Indiabulls Financial has very high potential to touch a target around Rs 310.

Agarwal told CNBC-TV18, “My first pick of the day is a buy call on Indiabulls Financials with a target price of Rs 285 and a stop loss of Rs 265. It is currently cheaply valued where it is trading to its price to earning of 10 times. The momentum in the stock is also very strong but the stock actually has moved up from Rs 180 to Rs 280 in a very short period of time. Considering that NBFC financials are the current flavour at this bull run, it seems that the stock still has very high potential to touch a target around Rs 310. It is a short-term call therefore a stop loss should be maintained.”

Agarwal further added, “My second pick of the day is a buy call on Nitesh Estate with a target price of Rs 20 and a stop loss of Rs 17. Nitesh Estate is seeing a lot of buying interest in last seven to eight trading sessions where the volumes have been on up rise. The stock has given more than 20 percent of return in last two trading sessions despite weak market. It seems somebody is accumulating in this counter therefore it is a momentum call and the stock can go higher than the targeted price.”

"My third pick of the day is a buy call on Aditya Birla Nuvo with a target price of Rs 1150 and a stop loss of Rs 1080. This stock had been recommended in yesterday’s trade and I am still bullish considering that it has financial as well as retail business and therefore it seems that after the FDI opened in the retail space, this stock will benefit in a longer term. This stock should be bought from the medium-term to long-term prospective and therefore a target price of about Rs 1400 can be seen in the next six months.”

Agarwal said, “My last and final pick of the day is a buy call on IFCI with a target price of Rs 37.5 and a stop loss of Rs 35. IFCI is again a deeply undervalued stock where the book value of the stock is trading about Rs 55. Again on a price to earning multiple it is just trading 6 times to its FY13 earnings. Henceforth again considering that NBFC financials are the current flavour this stock can also see some sort of jump in today’s trade. This is a short-term call therefore a tight stop loss should be maintained.”