HomeNewsBusinessStocksBull's Eye: Buy Hind Copper, HDIL, South India Bank

Bull's Eye: Buy Hind Copper, HDIL, South India Bank

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.

May 31, 2012 / 12:53 IST
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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, Saurabh Mittal of Swadeshi Credits and Ashish Kapur of Investshoppe. SP Tulsian, sptulsian.com Buy Hindustan Copper with a day target of Rs 270 and stop loss of Rs 247. Buy call has been given because the company has posted robust Q4 numbers with increase of 148% on profit before tax (PBT) and 125% in profit after tax (PAT) in Q4. Apart from this, the low float of the stock will also result into the higher momentum. Buy Mangalore Chemicals and Fertilisers with a day target of Rs 49 with stop loss of Rs 44. It is learnt that the UB Group, which is holding about 30% stake in the company is likely to conclude the sell of its stake very soon at an estimated price of around Rs 72 to one of the south-based largest complex fertiliser maker and based on this expectation or the rumour, we have seen the informed buying yesterday in the stock, which is delivery based and this momentum is likely to continue. Sell Shree Renuka Sugar with a day target of Rs 25 and stop loss of Rs 28. The company has posted very poor numbers for the quarter ended March ’12 and in fact the operations of the India as well as the consolidated operations has been very bad, which has translated into a loss of over 100 crore and apart from that the rising debt, which has now crossed or touched at around 10,000 crore is also seen to be a big concern and hence a negative call. Sell Steel Authority of India Ltd (SAIL) with a day target of Rs 88 and stop loss of Rs 94. Q4 numbers posted by the company has been very bad and the operating profit margin has fallen by more than 5% to sub-11% and this fall of 5% has largely come because of the rise in the material cost to over 50% for Q4 against 44.5% for the comparable quarter of the previous year and due to this the institutional or maybe the delivery based selling is likely to be seen in the stock. _PAGEBREAK_ Saurabh Mittal, Swadeshi Credits Buy South Indian Bank with a target of Rs 25 and stop loss of Rs 22. South Indian Bank saw decent move yesterday in the market and I think given the positives in the banking sector and with the interest rate hikes kind of dying down now I think the smaller banks will do well and it had returns some very good profits for last quarter. Buy Voltas with a target of Rs 106 and stop loss of Rs 100. Voltas had declared better than expected results and the stock had seen some up move but has corrected since then. I think it should hit a floor around here and may be have a technical bounce for today. Short BPCL. I continue this short from yesterday with a target of Rs 688 and a stop loss of Rs 710. I think the diesel price hike is being talked about but I am not sure if it will come around in this week and I see some more softness for the oil marketing companies for the next couple of trading sessions. Buy Unitech with a target of Rs 24 and stop loss of Rs 21.50. Unitech has had all its bad news factored into its stock price. The stock has corrected from a high of over Rs 500 and it is down almost 95% from its high and I think its about time to bottom fish for this stock and it has seen some decent consolidation at the 19-20 level and yesterday it saw a decent move and I think this stock should do well in the next couple of trading sessions. _PAGEBREAK_ Ashish Kapur, Investshoppe Buy HDIL with a target of Rs 71 and a stoploss at Rs 64. Nearly all the negatives concerning HDIL having factored in, the company has a huge debt and is facing problems like other real estate players in offloading the huge amount of projects which they are having but we feel that at the current price, the risk reward ratio is very favourable. Moreover, the company is adopting a very clever strategy of selling land parcels to reduce their debt, they have very recently sold a huge land parcel to the Adani Group. Buy Aditya Birla Nuvo with the target of Rs 835 and a stop loss at Rs 762. My reason for being bullish is that this is a very good fundamental stock available at very cheap valuations now. Moreover the company is undergoing a good expansion kind of Rs 650 crore which will be used in augmenting its capacity in the rayon as well as the caustic soda business. The company also has recently acquired the Pantaloon Retail Fashions brand, which will help it expand its footprint in various retail segments. Buy Apollo Hospitals with a target of Rs 720 and a stop loss at Rs 660. Healthcare business in India is set to do very well going forward and Apollo Hospitals is one stock, which is well positioned to capitalize on this impending growth. The company has registered a double digit growth for the last twenty consecutive quarters, it also has a very low and comfortable debt equity ratio compared to its peers. So we feel that this is a very safe and a good investment idea. Short Voltas with a target of Rs 96 and a stop loss at Rs 105. Now Voltas did deliver better than expected results but that was mainly on account of some past contracts getting delivered in this quarter. The whole environment for capital goods industry remains doubtful, remains under pressure and Voltas is no exception. Management too has given a very cautious outlook for the near future. We feel that due to the rise in the stock price after the results, this is a very good shorting candidate.
first published: May 30, 2012 12:48 pm

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