Buy Plethico Pharma, Guj NRE, Suzlon Energy: SP Tulsian

In CNBC-TV18's popular show Bull's Eye, SP Tulsian of sptulsian.com shares trading strategy of the day.
 
Buy Plethico Pharmaceuticals with a day target of Rs 342 and stop loss of Rs 325. This pharma company has already posted earnings per share (EPS) of Rs 50 for first nine months of calendar year 2012 on a topline of close to about Rs 1,200 crore. The company having promoter stake of 23 percent, has been seeing informed buying for last one week and this trend is likely to continue in the time to come and hence a buy call.
 
Buy Gujarat NRE Coke with a day target of Rs 23 and a stop off of Rs 21.40. The company has posted satisfactory Q3 numbers with a profit after tax (PAT) of close to about Rs 20 crore against less than Rs 2 crore in the previous year resulting into an EPS of close to 35 paise and in anticipation of better working the stock has been witnessing value buying for last four-five days and this result is likely to cheer the market and buying trend is likely to continue and hence a buy call.
 
Buy Suzlon Energy with a day target of Rs 20.75 and stop loss of Rs 19.50. The stock has seen huge delivery based buying yesterday on anticipation that the bankers of the company are likely to restructure the debt of the company, which is placed to the extent of Rs 13,000 crore very soon and in anticipation of that and once this happens the stock is likely to get vastly rerated because the company is the fifth largest wind power turbine makers in the world and the stock is continuously seeing delivery based buying and hence a buy call.

Sell Steel Authority of India (SAIL) with a day target of Rs 92.50 and stop loss of Rs 96.50. All the ferrous steel stocks are showing weakness and couple of days back there was long positions having created in all those stocks on the misconception that the 20 percent import duty has been levied on the ferrous product, which was proved incorrect and since then we have been seeing the liquidation in all the ferrous metal stocks and the same trend is likely to continue for this stock also resulting into the weakness in the near term and hence a sell call.