Buy Mahindra Ugine, Polaris, SREI Infra: Agarwal

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

One can buy Mahindra Ugine with a stop loss of Rs 69 and a target of Rs 77.

One can buy Polaris with a stop loss of Rs 119 and a target of Rs 127. The full year numbers were down by around 10 percent, negatives have already been discounted at these valuations. The weak rupee would help in giving better numbers in the next two quarters at least. There is a buzz of some companies eyeing a stake in this company. On the valuation parameters, it is trading at a price-to-earnings (P/E) of Rs 6 and dividend yield in excess of 4 percent, hence we recommend this as a buy.

One can buy SREI Infrastructure with a stop loss of Rs 23 and a target of Rs 26. The company is doing well in infrastructure financing and is eyeing a banking license. With the current carnage in non-banking financial company (NBFC) stocks, I think all the negatives have already been discounted in the stock price. Q4 numbers were too good with around 400 percent jump in bottomline. Even on valuation parameters, it is trading at a P/E of Rs 5 which again is quite attractive, hence we recommend this as a buy.

One can buy Orchid Chemicals with a stop loss of Rs 50 and a target of Rs 56. The United States Food and Drug Administration (USFDA) has given a clean chit for their Chennai plant yesterday. The numbers were pretty bad not only for Q4 but for full year also. Huge debt is there in the books but we feel that with the recent fall in the stock prices all the negatives have been discounted. With new product in the pipeline and the Chennai plant getting the USFDA nod, we think from the current market price, an appreciation of 25-30 percent in the near-term is quite possible. Hence it is a buy call.