Buy Puravankara, KPIT Cummins, sell Idea: Mukadam

In CNBC-TV18's popular show Bull's Eye, Shahina Mukadam of Varun Capital shares her trading strategies for the day.

One can buy Puravankara Projects with a target of Rs 89 and a stop loss at Rs 80. Promoters have recently disinvested stake to bring down their equity holding to 75 percent raising Rs 307 crore. This amount will be utilised to repay debt which not only will bring down the interest cost but should also give them surplus money to invest in the new projects. They have planned about 10 million square feet of new projects to come out in the next one year of which almost 40 percent will be in affordable housing.
One can buy KPIT Cummins for a target of Rs 119 and a stop loss of Rs 110. During 2013, despite the decline in revenue contribution coming in from Cummins, the overall consolidated revenues grew at a very healthy 49 percent. Also, EBITDA margins improved. The current price discounts is about eight times which looks like a decent bet at current levels.
One can buy Karnataka Bank for a target of Rs 144 and a stop loss at Rs 136. The bank has got about 503 branches spread all over India, strong presence in South India. It has presence both in urban as well as rural areas. In terms of valuations, it is available at quite a decent level at almost 0.8 times book. It is one of the cheapest banks in the private sector segment. In terms of growth, the bank has shown a relatively good growth.
One can sell Idea Cellular for target of Rs 133 and stop loss at Rs 139. Basically, it's a short term trading call. It is moving in a band and I do believe that given the problems and given the issues around telecom segment, it is going to find it very difficult to break above the current price levels. I think there is a short term correction that is possible. My target for the day is Rs 133.