Buy Escorts, HOEC, Electrosteel Casting: Ashish Kapur

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

My first recommendation for the day is a long on Escorts with a target of Rs 74 and a stop loss at Rs 67. It is one of the agriculture and automobile sector company which hasn’t performed well. We feel given the kind of run up in the market, this is one stock which has a lot of value which can be unlocked in future. It has a construction division which is not doing badly at all. The agricultural machinery division infact has been performing quite well, margins are also improving and volume has also shown a good trend.
My second recommendation for the day is a long on Hindustan Oil Exploration with a target of Rs 110 and a stop loss at Rs 100. Given the company’s strengths in the exploration and production segment and the fact that the company is sitting on a significant blocks in Assam, Rajasthan, Cambay and Kaveri basins we feel that the stock is undervalued and any kind of momentum has the potential to significantly take the stock higher from the current levels. Again a stock, which so far has not done very well but we feel given the kind of market we are in, it is a good stock to look at.
Third recommendation for the day is a long on JK Cement with a target of Rs 360 and a stop loss at Rs 330. JK Cement being a very well established player and one of the largest in north India also enjoys the advantage of being the second largest player in the high margin white cement space. The company is further adding its capacity both in the white cement as well as the wall putty division.
Final recommendation for the day is a long on Electrosteel Casting for the target of Rs 27.50 and a stop loss at Rs 24.50. Now Electrosteel Castings is again a very good value pick in the current market. The company is trading at a very attractive valuation. The previous quarter results have been very encouraging. The company is a very well established player in both ductile iron (DI) as well as cast iron (CI) pipes and moreover the company is focusing on becoming a fully integrated player, they are going backward into mining of coal and other raw materials.