Bull's Eye: Sell BGR Energy, Aban Offshore

Bull's Eye, CNBC-TV18's popular game show, where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.

Remember these are midcap ideas not just for the day, but stocks that look attractive in the medium-term as well. This week, SP Tulsian of sptulsian.com, Ashish Kapur of Investshoppe and Saurabh Mittal of Swadeshi Credits. SP Tulsian, sptulsian.com Buy Berger Paints with a day target of Rs 142 and stoploss of Rs 135. Company has posted robust Q4 numbers wherein the PAT has increased by 31% to Rs 45 crore. Apart from that 75% plus stake of the promoters also instills the confidence in the stock. Sell BGR Energy with a day target of Rs 274 and stop loss of Rs 287. The company has posted very poor numbers with drop of 22% in topline and drop of 32% in its bottomline which indicates that there is a good pressure on the margin of the company. Apart from this the market has been taking negative cue on all capital goods stocks. Sell Aban Offshore with a day target of Rs 352 and stoploss of Rs 370. The company has posted very poor numbers for Q4 with drop of 11% in topline and profit before tax (PBT) fell by 59%. Apart from that the rising debt and now the total debt of the company placed at about Rs 12000 crore is also seen a bit negative. Sell Educomp Solution with a day target of Rs 138 and stop loss of Rs 145. The company has again posted very poor Q4 numbers with a drop of 60% in its PAT. Apart from that the rising debt of close to about Rs 1250 crore standing in the books of the company coupled with the rise in the current liability also seen quite negative for the stock. _PAGEBREAK_ Ashish Kapur, Investshoppe Buy Godrej Consumer Products with a target of Rs 607.70 and a stop loss at Rs 556. We quite like Godrej Consumer because to begin with it is in the defensive space which is a preferred segment to be in these choppy markets. Secondly Godrej Consumer is fundamentally a very good stock and has been doing very well. We quite like the management strategy on focusing on a few products and increasing their presence geographically across different continents. Results have been very encouraging. Buy Berger Paints with a target of Rs 144.7 and a stop loss at Rs 132.5. The paint industry in general has been doing very well and Berger Paints is no exception. The company posted very encouraging results in the previous quarter, both the topline as well as the bottomline increased by very smart margin. Moreover the company is on a very good expansion derive, its investing Rs 260 crores to double its capacity over the next two years. Short United Spirits with a target of Rs 570 and stop loss at Rs 628. United Spirits has performed very badly in the previous quarter where the profit fell from Rs 59 crores to as low as Rs 10 crores. Two key markets West Bengal and Tamil Nadu performed very badly and with the kind of increase which has happened in West Bengal we expect this lackluster performance to continue. Moreover the competition is increasing and the company has a huge amount of debt which it’s carrying which is a big negative. Short position on Tata Communication with a target of Rs 203 and a stop loss at Rs 222.50. Again this is one company which has reported very dismal performance in the pervious quarter where the net loss widened by 67%. Expenses have gone up on all fronts interest expenses, operating expenses, staff expenses, raw material cost all have gone up and the company is again facing huge competition. So given the kind of performance and the near term outlook we feel it’s a very safe short. _PAGEBREAK_ Saurabh Mittal, Swadeashi Credits Buy Tata Motors with a target of Rs 248 and a stop loss of Rs 240. Tata Motors after its results has fallen dramatically and yesterday you saw a 10% decline in the stock. I think it may have been overdone so I am looking for little pullback for a couple of percentage points for today’s trade. Buy ITC with a target of Rs 235 and a stop loss of Rs 228. ITC has held out in a volatile market and I think its defensive play. When the market conditions are uncertain I think the defensive stocks seem to give you better returns, so I have a buy on ITC. Buy Unitech with a target of Rs 22 and a stop loss of Rs 19.50. Unitech has been in trouble times for the past year or two but the 20 level it seems to find support and it fell in yesterdays trade so I am looking for a technical pullback here. So I have a buy on Unitech. Buy Tata Global with a target of Rs 112 and a stop loss of Rs 104. Tata Global seems to be in the trading band I think it is ready for a little bounce in today’s trade, so I have a buy on Tata Global with a target of Rs 112.