Buy IGL, Tech Mahindra, LIC Housing: Lancelot 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.

I have a buy call in Indraprastha Gas (IGL) with a target price of Rs 294. The stock has been rising in the last few trading sessions on good volume on probably anticipation that the government may take some decision in hiking rates and the stock is being accumulated at the current levels and hence we can see that in spite of a falling market, the stock has remained fairly steady. I expect buying to continue and the stock could move higher to hit its target price of Rs 294.
I have a buy call on Tech Mahindra with a target price of Rs 1,327. The company recently announced its launch into the education space and the engineering education space with a joint venture with Ecole Centrale Paris and on the back of the news the stock could move up. Fundamentally the company is on track to implement its plan to reach a turnover of USD 5 billion over the next five years. It is attractively priced. It trades at about 11 times it FY15 earnings which is fairly attractive compared to its other peers since it is among the top five IT players in the space.
I have a buy call on LIC Housing Finance. It has fallen considerably from its peak price of Rs 300 and from the lows has seen good buying and has moved up on volumes. I expect this accumulation to continue. The stock is attractively placed from a long-term perspective. It trades at above 1.6 times its forward book value which is fairly attractive when you look at the other market leader, HDFC, which is trading about three times book value. So, from a long-term perspective also this stock can be looked to be added in the portfolio.
I have a buy call on Dish TV India with a target price of Rs 49.90. It has fallen about 35 percent from its peak level because of surprises in the quarterly numbers in the past two quarters. However, we have seen that the company has put in place some triggers that could help it grow its market share going forward and we could expect better numbers from this company. The stock is also attractively priced; it is trading at about eight times its FY15 enterprise value (EV)/earnings before interest, taxes, depreciation and amortisation (EBITDA), which is fairly attractive when you look at its long-term average of 13 and its peers which are trading at about 14 times EV/EBITDA.