Samavat 2069 trading tips: Chugh, Baliga, Irani's best bets

Though market did not kickstart Samavat 2069 on a very positive note, analysts feel that next year is going to be better and may even touch new highs by next Diwali. So here are some of the top picks to usher in prosperity.

Ashish Chugh, Investment Analyst We particularly like the real estate sector in general and the stock of Unitech Limited in particular. This is because of various reasons; with the dispute with the Telenor having got settled I think the company will now scale up its business and it will concentrate fully on the core activity of real estate. From the current level of about Rs 26 the potential downside in case of a bad scenario or incase of the market going down seems to be about between 15-20 percent. But I believe that the stock has the potential to go up by anywhere between 50-100 percent over a period of 1-1.5 years. Ambareesh Baliga, Market Analyst The first stock which I recommend for this Diwali is Goodricke Group. It is basically a tea company getting into dairy business going ahead. The reason I am recommending this stock is that the tea prices should move up in the coming years by about 15-18 percent. Tea grower should be able to report a EPS of about Rs 27-28 for FY13 which means that this stock which is currently quoting at about Rs 138-140 could move up to levels of about Rs 180-200 or maybe slightly higher if you are talking of the next one year or 15 months. Mehraboon Irani, Principal & Head-Pvt Client Group Business, Nirmal Bang Securities Stock which I would like to recommend for the mahurat session (something which we have been advising to our clients and buying for our clients - clear disclosure) is Infinite Computers, a Bangalore-based company. The company has been consistently performing over the last few quarters. What impresses us after the management meet is the clear numbers. It’s a debt free company, it has got cash in the books of Rs 180 crore. At present, this (cash) works out to nearly 28 percent of the market cap which works out to Rs 42 per share. So, you have Rs 42 per share cash lying in the books. Dividend yield of 8 percent, valuation of just 4.5-4.3 times its EPS, I think this company deserves a better rating. The valuation should go up to at least 5.5-6 times and we are looking at a conservative price of Rs 200 for the scrip over the next six months. PN Vijay, Portfolio manager My Diwali pick is Dena Bank. In terms of valuations it's very attractive. At current market price of around Rs 110, it's trading at about 4.3 times FY13 earnings and a price to book of around 1. So, on both valuation counters it's attractive. The bank has reported very good return on equity right through in the last 8 quarters which is of course again a positive for investors. I am giving this bank one year target of about Rs 150 with a stop loss of about Rs 100 from the current price.