Buy Indiabulls Real, SpiceJet, Provogue: Agarwal

In CNBC-TV18's popular show Bull's Eye, Rajesh Agarwal, Eastern Financiers shares trading strategy of the day.

Indiabulls Real Estate is into real estate and has major projects in Delhi, Mumbai and Chennai. With FDI in retail passing through in Lok Sabha we believe that demand for realty space at least in metropolitan cities will see a momentum. Although the sector is still saddled with its own problem of high debt, interest cost and inventory but since this company is into metropolitan cities we believe that it would be beneficiary of the FDI in retail.
One can buy SpiceJet with a stop loss of Rs 46 and a target of Rs 52. There was news of Mr. Maran infusing around Rs 184 crore in the company and there was a buzz that Etihad is also looking at some tie-ups and buying out some stake in Indian domestic aviation sector. So, that has again helped SpiceJet. Thirdly with Kingfisher out of business companies like SpiceJet are beneficiaries because they are getting more passenger load factor and they are having more pricing power.
One can buy Pantaloon Retails with a stop loss of Rs 229 and a target of Rs 249. This is one of the largest domestic retailer and it plans to raise around Rs 2500 crore to reduce its debt. That would reduce its interest cost and thereby improve margins. The company has proposed a realignment of its operation to unlock value. With FDI in retail passing through in Lok Sabha we believe that this company will be one of the biggest beneficiaries and hence a buy call.
One can buy Provogue India with a stop loss of Rs 15.80 and a target of Rs 19. Since most of the operations of this company is in Maharashtra, moreover in Mumbai and with Maharashtra government open to FDI in retail we believe that this company is going to be one the biggest beneficiary of FDI in retail passing through in Lok Sabha. Even the promoters have shown interest in inducting a foreign partner as and when things go through and hence a buy call.