In CNBC-TV18's popular show Bull's Eye, Shahina Mukadam of Varun Capital shares her trading strategies for the day.
Buy Syndicate Bank with a target of Rs 134 and stop loss of Rs 128. The Q4 numbers that were declared last week were quite good. We saw an improvement in the asset quality. Net performing assets (NPAs) have come down. Also the coverage at about 83 percent is quite healthy. The adjusted book value is now close to about Rs 135 so I think there is still little bit scope up for the stock to move from here from the current levels.
Buy Ipca Laboratories with a target of Rs 580 and stop loss of Rs 552. The numbers are expected to be declared by the month end and they are likely to be reasonably good. Also in addition to this going forward in the next one year I believe the constraints that they have in capacity should be sorted out with the commencement of operations at the Indore plant. The SEZ plant is expected to get their US FDA approval and that should enable it to have a good revenue performance coming in from the US market.
Buy Jain Irrigation with a target of Rs 70 and stop loss of Rs 64.50. The first nine months of the current year a lot has gone wrong for the company. They have had a lot of pressure both in terms of revenue was impacted and the financial cost have spurted up. In the last quarter they have raised about USD 200 million both in terms of equity and debt which should help them to bring down the overall interest cost. Also I believe next year should be better in terms of revenue growth. The stock price has corrected a bit and I see a bounce from here.
Buy Tata Global Beverage with a target of Rs 152 and stop loss of Rs 144. The numbers are expected next week, good numbers. On a 15 percent revenue growth the company can report a 30 percent growth in profits. Valuations for this quality management FMCG Company is not very expensive. It is about 10 times EV by EBITDA and two times EV by sales which does give it scope for an up move from here.
Will you buy Syndicate Bank, Ipca Laboratories, Jain Irrigation?
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