Buy Rel Comm, Zee Entertainment, Crompton Greaves: Mukadam

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

Buy Reliance Communications with a target of Rs 118 and stop loss of Rs 109. The Q4 numbers were pretty good, good traction in terms of revenues, average revenue per user (ARPU) were up. You have the rate per minute that is up. You have high levels of debt, leverage is high but I believe that valuations are still attractive with 8 times EV/EBITDA of FY14. I believe there is still some upside left in the stock. Buy Zee Entertainment with a target price of Rs 255 and stop loss of Rs 240. Here the expectation is that the Q4 numbers, the company is going to declare early next week is likely to be quite good and in addition to that the guidance for the next year for FY14 should be pretty good. The sports channel should turn profitable; also the newer channels which are running into losses, the losses should be reduced. Buy Crompton Greaves with a target of Rs 96 and stop loss of Rs 93. The company has seen pretty tough times in the first 9 months of the year, with the write-off that it has to take on the Belgium plant that is behind us. Going forward into the quarter numbers that are expected to be declared early next week, we are looking forward to a better set of numbers. In addition, lower interest rates as well as the reforms that are taking place in the power sector; improvement in the capital investment in the power sector is a positive for the company. Sell Dabur India with target price of Rs 156 and stop loss of Rs 165. While I continue to like the consumption business that Dabur is in, it has got a good stable product portfolio, good stable products that they have got and decent volumes growth of 12 to 14 percent. At the same time I would like to say that the stock price has run up a lot. I think for the shorter-term we could see some bit of a correction, so this is a short-term call with a target price of Rs 156.