Buy IOC around Rs 295: PN Vijay

PN Vijay of askpnvijay.com told CNBC-TV18, "I am not too good at predicting weekly trades, I am perhaps slightly better at predicting longer term trades. One is Calcutta Electric Supply Corporation (CESC). They came out with very decent numbers and what is happening in CESC is that they have got a whopping price increase from the West Bengal government for the same type of volume of units of electricity they supply is going to translate into very good profits.”

He further added, “Secondly, the cash burn in Spencer's which is the retail chain that they have as a subsidiary of CESC, the cash burn stage is practically over and 14-15 should be strong numbers coming in from Spencer's and let us not forget Goenka has gone out and said that he will be looking for Foreign Direct Investment (FDI) in Spencer's sooner than later and thirdly they are doing some capacity expansions which will fall into place and there could be fair amount of merchant power selling from those capacities.” “Right now the capacity is being spread only into the Calcutta grid system. So these are all strong positives and the share has been behaving quite well in a rather weak market. So I like CESC for some three to six months range.” “Indian Oil Corporation (IOC) came out with very decent numbers. If you look at that the under-recovery story has been very, very well curtailed. Government has released a huge amount of subsidies. They have got close to hitting distance from the market price of diesel versus their cost of diesel, so it is only a distance of Rs 1-2 which may get corrected in next two months and for LPG also they are getting away with fairly good price increases. So on the ground IOC's numbers are going to get better and better unless the Brent shoots above USD 110 or so, then you have issues.” “IOC is an asset-rich strong company with 35 percent market share in petroleum product distribution. So I think you could happily buy it around Rs 295 or so. You should get about 20 percent in the next 7-8 months."