Buy IndusInd Bank, City Union Bank, Cummins: Kapur

In CNBC-TV18's popular show Bull's Eye, Ashish Kapur, Investshoppe shares trading strategy of the day.

Buy IndusInd Bank with a target of Rs 460 and a stop loss at Rs 420. We remain bullish on IndusInd Bank due to better than expected quarter three results where both - net interest income as well as the overall net income registered a very sharp growth. Moreover, the CASA ratio increased smartly. Also, the overall headline advances and deposits also showed a good incremental traction.
Buy City Union Bank with a target of Rs 68 and a stop loss at Rs 61. The bank enjoys a very robust balance sheet with very good capital adequacy ratio, healthy assets and extremely low and controlled non-performing assets ratio. So we feel going forward this is one good bank which will continue to do well. The management expects a 25 percent growth over the next couple of quarters. The bank also is enjoying a good CASA ratio.
Buy Cummins India with a target of Rs 540 and a stop loss at Rs 487. Cummins is one of the few companies in the capital goods space which is still enjoying a good traction in its business. The main growth in the domestic market is coming from the generator sets. Given the kind of power deficit, the company expects this growth to continue for the next five to seven years. Along with this, the export market also is doing fairly well for this company. The company enjoys a very good balance sheet and very favourable return ratios.
Short Suzlon Energy with a target of Rs 16 and a stop loss of at Rs 18.60. Suzlon is still facing a lot of problems. In the domestic market, the removal of accelerated depreciation and generation based incentives as well as falling market share is leading to a lot of problems for Suzlon. We expect domestic growth to remain tepid. Export market also is uncertain with the kind of competition heating up in global wind energy environment.