Buy Titan Ind, Rolta India, SpiceJet: Mukadam

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

Today being Akshaya Tritiya I will buy Titan Industries with a target of Rs 296, stop loss of Rs 285. Last six months has been challenging for the company both in terms of changing government policy towards gold imports and also fluctuating prices of gold. Despite this the company has managed to show a reasonable growth of 14 percent in Q4 and a good profit growth of 28 percent. In terms of valuations 28 times one year forward is not too expensive.
Buy Rolta India with a target of Rs 65 and stop loss of Rs 59. In terms of financial performance the company has been reporting good numbers in the last couple of quarters. The main problem for the company has been the spurt in interest cost which we have seen in the last one year and this is largely because it had to raise high fund debt to repay its FCCBs USD 135 million a year ago. This weekend the company has raised USD 200 million bond issue to be listed on Singapore stock exchange. This should help ease the pressure on its balance sheet.
Sell Dena Bank. The numbers came out on the weekend, very disappointing set of numbers. They have shown deterioration in terms of all financial parameters, they have pressure on net interest margins (NIMs). The expenses have gone up, you have provisions that have increased substantially. Despite this the gross and net NPAs have increased. In terms of adjusted book value it would now be closer to about Rs 85 so I believe the stock would correct, move towards this level.
Buy SpiceJet with a target of Rs 41 and stop loss of Rs 37.50. The company has in the last six months started reporting profits versus a loss that it was reporting for the previous four quarters. They have had a benefit coming in from lower fuel cost as well as better higher load factor which has improved the utilization. In terms of M&A activity this is one stock that is likely to see some bit of news flows coming in going forward. Definitely the company requires infusion of funds and the promoters are actively seeking this.