Buy Pantaloon Retail, DB Realty, Rel Comm: Agarwal

In CNBC-TV18's popular show Bull's Eye, Abhishek Agarwal of Fortune Interfinance shares trading strategy of the day.
 
Buy Pantaloon Retail with a target price of Rs 290 and stop loss of Rs 260. Pantaloon Retail seems to be in a deleveraging mode since last one year where post-Aditya Birla deal they managed to reduce their debt to Rs 3,500 crore odd. The management has given guidelines that in next two years they will reduce the debt to zero which means it is possible that post-FDI in retail it will help the company to get a foreign partner which would substantially reduce their debt through stake sell. However we are bullish on the stock for long-term, therefore it is a good opportunity to enter at current levels.
 
DB Realty has doubled since October 2012 to almost today’s level of Rs 160; however it is still trading at discount by 60 percent from its Rs 400 odd levels in January 2011. At this point of time it is trading 1.5 times of its price-to-book of FY12. I believe the stock is significantly undervalued and current momentum should take the stock much higher to Rs 200. It is a buy for the medium-term.
 
Buy Indiabulls Financial with a target price of Rs 345 and a stop loss of Rs 320. The stock is enjoying a great run at this point of time and I believe that it should continue for some more time. Indiabulls Financial has given great results in last three years. The profit has increased almost four times in the same time period. It seems the company is considerably aggressive and going forward after the rate cut which is expected to happen this month the stock will further rise.
 
Despite Nifty being weak in the last couple of trading sessions the Reliance Communication has gone against and has shown great momentum. The news floating around selling its GSM business is again a positive trigger which would help it to reduce overall debt of the company. The stock is also enjoying great volumes in the recent past. I am pretty positive on the stock and can expect in three digits. This stock is also a yesterday’s rollover.