Bull's Eye: Buy JM Financials, Andhra Bank, JSW Energy

Bull's Eye, CNBC-TV18's popular game show, where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.

Remember these are midcap ideas not just for the day, but stocks that look attractive in the medium-term as well. This week, SP Tulsian of sptulisan.com, Sharmila Joshi, Head of Equities, Fairwealth Securities and Lancelot D Cunha, ITI Wealth Management battle it out for top honours. SP Tulsian, sptulisan.com Buy Kennametal India with a day target Rs 1130 and stop loss of Rs 1025. This stock has seen informed buying on Friday in anticipation of an early delisting move likely to be initiated by the promoters because they are holding 88% plus stake in the company. Company posting an EPS of over Rs 40 on an annual basis and of this delisting happens it can discover the price of over Rs 1600, hence a buy call. Buy JM Financial with a day target Rs 1550 and stop loss of Rs 1350. This stock also has seen informed buying on Friday resulting into the huge delivery base volume happening in anticipation of some corporate development seen taking place in the near term and as such the stock is seen to be quite undervalued amongst the financial services space and hence a buy call. Buy call on Kingfisher Airlines with a day target of Rs 1330 and stop loss of Rs 1180. All the aviation stocks are into the limelight and into the news on hopes that some sops will be given to the aviation sector including allowing FDI by the foreign airlines into this sector. On a relative basis this stock looks to be the cheapest because other aviation stocks have seen a good run up in this last two three days while this has been languishing at the current level and hence on a relative performance the stock can be bought and hence a buy call. Buy UCO Bank with a day target of Rs 80 and stop loss of Rs 75.50. This stock looks good midcap PSU banking stock because the interest which we have been seeing in the banking sector this stock looks the high beta stock. Apart from that the fundamentals of the bank is quite goo d with EPS of over 15 and price to book of less than 1 and hence a buy call. _PAGEBREAK_ Sharmila Joshi, Head of Equities, Fairwealth Securities Buy Sadbhav Engineering with a target of Rs 138 and a stop loss at Rs 133. This stock has been doing well ever since the news of the PM-infra meet has taken place. Definitely I think it is stocks like these which stand to gain. Sadbhav Engineering has an excellent track record when it comes to finishing road projects and overall delivering projects in fact before time, their order book is very healthy. We have in fact a longer-term target of about Rs 175 on the stock. For the day I am recommending it with a target of Rs 138. Buy Andhra Bank. This I am buying with a target of Rs 118 and a stoploss at Rs 113. Once again I think banks have seen good moves as hopes of a repo or CRR cut kind of start getting built in. Of course I think Andhra Bank also has a good dividend yield. So it is a very safe stock as far as retail investors are concerned. So there is a whole host of these PSU banks, which look good even from a dividend yield perspective. So basically the strategy being – you take the dividend this year as well as the next and stay invested for a year’s period but of course for the day I am recommending it with a target of Rs 118. Buy Alstom Projects with a target of Rs 365 and a stop loss at Rs 349. Largely on back of the orders that they just won from NTPC Turnkey projects and overall financially things are looking better for Alstom Projects. So on the back of that stock I like, this I buy with a day target of Rs 365. Sell BEML with a target of Rs 372 and a stop loss at Rs 387. Of course I think the stock has corrected significantly ever since the whole Tatra deal investigation has been talked about. I think there is a further downside on the stock. I wouldn’t rule out much lower levels but for the day I sell it with a target of Rs 372. _PAGEBREAK_ Lancelot D Cunha, ITI Wealth Management Buy ILandFS Transportation Networks. It has been rising up for the past few days with relatively good volumes and the stock has been poised at a very interesting level. If it breaks out above this Rs 182-183 levels we could see it move up to around Rs 200 in the medium term. The stock is fundamentally a good company. One of the leading road producers is valued at about 1.2 times book which is fairly attractive even from a long-term investment perspective and I believe with the current momentum I should see the stock hitting its target price of Rs 185.50. Buy JSW Energy with target price of Rs 49.90 and a stop loss of Rs 45.25. JSW Energy has recently started moving up on the basis of news that they will probably be able to operate at 100% capacity since their supply of coal is now in place. It is presently trading at about 1.2 times its book value which is very cheap for a power company of its size and given the fact that we are seeing the coal issues being addressed I think the stock within a period of 6-12 months should move up beyond to about its medium term target of about Rs 60. Buy Reliance Capital with target price of Rs 347.90 and a stop loss of Rs 330.10. Reliance Capital has been in the news recently looking to sell off a stake in Reliance General and there was some news that possibly Future Generali could be interested in stake in its General insurance business and that could be very positive for the stock. I have seen the stock moving up on volumes over the past 2-3 days. Could be due to informed buying and given that momentum I expect the momentum to continue and the buying to take the stock to its target price of Rs 347.90 Buy LIC Housing Finance with target of Rs 255 and stop loss of Rs 240. LIC Housing Finance is the second largest housing finance company so even from a long term perspective is trading at about 2.5 times its FY12 book value and on the forward basis trading about 1.9 times. So for a long term perspective stock looks relatively attractive and has seen 30% growth with very low NPAs. So I see with interest rates coming off their highs and an interest rate regime which is favorable to housing finance we should see LIC Housing Finance doing much better in the next 6 months.