Go long on Godrej Consumer, Escorts, Den Networks: Kapur

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

I am long on Godrej Consumer Products with a target price of Rs 930 and a stop loss at Rs 855. In this kind of a market I feel it is better to focus on defensive space and Godrej Consumer certainly is one stock where the future looks bright regardless of where the market would be headed in the near term. The company continues to show very robust top-end growth though in the previous quarter there were some concerns on the margin front, but going ahead this would get addressed. Advertisement spend in Africa would come down as a proceedings of the total sales in that region.

I am long on Escorts with a target of Rs 75 and a stop loss at Rs 68. Escorts is coming out of a very long period of consolidation and I feel that the kind of performance which the company has delivered and is likely to deliver in the coming few quarters. The price still looks very cheap and I feel that construction division as well as agriculture machinery and tractor division would continue to show robust growth & traction in the coming quarters.

I am long on Den Networks with a target of Rs 235 and a stop loss at Rs 213. I feel that TV penetration in India is likely to continue increasing going forward and Den Networks is a company very well placed to take advantage of this traction. The company has a strong subscriber base and is aggressively moving into various small towns and cities in a very aggressive way. They have also appointed dealers and distributors in a very planned and systematic way. We feel that all this augurs well.

I have a buy on Tata Global with a target of Rs 156 and a stop loss at Rs 144. The company has a very defensive nature of business. It has wide range of beverages which it offers in various markets across the globe. Also what is exciting is Tata Starbucks’ venture, which is aggressively going to rollout in different cities in India over the next few years. So, given all that I feel that the downside here is very limited and the upside at least on long-term basis can be very promising.