Buy Patel Engg, Electrosteel Castings, Rolta: Kapur

In CNBC-TV18's popular show Bull's Eye, Ashish Kapur of Investshoppe shares trading strategy of the day.

Long on Patel Engineering with a target of Rs 81 and a stop loss at Rs 73. The results were not encouraging. The company continues to perform badly and also the concerns regarding debt have not slipped away however we feel the company has lot of strength in the engineering space, has a very good outstanding order book position, good capability in terms of execution and also we feel at the current price most of these negatives are factored in. Long on Electrosteel Castings with a target of Rs 27.5 and a stop loss at Rs 24.5. This is one company which has delivered a sound performance despite difficult economic conditions. In the last quarter the revenues went up by 5 percent and the net profit went up by 28 percent. If one takes out the exceptional loss of which the company suffered due to foreign exchange in the previous quarter. Moreover with company’s backward integration into iron ore mining as well as coal mining, the margins are set to improve going forward. Long on Rolta India with a target of Rs 66 and a stop loss at Rs 60. Rolta is present in various verticals in the software space and many of its products and services are consumed by the government with lot of products being consumed by the defense as well as homeland security departments. The company has taken a cautious decision to move out of low margins products and services due to that the revenues have slipped for one time but going forward we expect the company’s performance to improve. Long on Sun Pharma Advanced Research Company (SPARC) with a target of Rs 106 and a stop loss at Rs 94. This company which was bifurcated from Sun Pharma in 2007 focuses on research and delivery of new drugs. The company is undertaking various research projects for developing new molecules as well as novel drug discovery mechanisms. We expect various milestones to be delivered by this company in the near future.