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Last Updated : May 28, 2012 04:19 PM IST | Source: Moneycontrol.com

Bull's Eye: Buy Vikas WSP, Marico, Delta

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.


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 Vikas WSP with a day target of Rs 69 and stop loss of Rs 62.50. This company is one of the leading player in Guar and Guar Gum and the FMC which has recently carried out the investigations in the name of this company has not appeared and virtually one can say that they got a clean chit. Apart from that looking to the huge demand company is carrying out the expansion and ahead of the Q4 results on Wednesday the informed buying is seen on the stock and hence a buy call.


Buy Redington with a day target of Rs 86 and stop loss of Rs 79. This is an end-to-end product supply management company for IT and IT products and Q4 results of the company has come out very well with EPS of Rs 2.56 against Rs 7.40 for whole of FY12 on a consolidated basis. This company considering its presence in 22 countries apart from that they have the tie-up with the reputed hardware suppliers the stock looks good at this price and hence a buy call.


Buy call on HDFC Warrants with a day target of Rs 67 and stop loss of Rs 60. One warrant entitles to subscribe one share of HDFC at Rs 600 per share and this window will remain open up to 24th August, 2012 and those who want to convert the shares even can do it now and can get an entitlement for a dividend of Rs 11 as well. Apart from that after the MSCI clarifications, the goof-up created on the stock has come to an end and for last couple of days we have been seeing renewed buying in HDFC shares and hence that positive view on HDFC shares gives a good arbitrage opportunity to buy this warrant instead of shares and hence a buy call.


Sell Suzlon Energy May Future with a day target of Rs 19.50 with a stop loss of Rs 21.10. The company has posted very poor numbers for Q4 with net loss of about Rs 300 crore which was a profit of about Rs 210 crore in the comparable quarter of the previous year. The poor performance has come largely because of the operating profit margin falling to about 3% against 11.5% in the same quarter of the previous year and the stock looks weak for next couple of days and hence a sell call.


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Ashish Kapur, Investshoppe


Buy Marico with a target price of Rs 188 and a stop loss at Rs 173. We like Marico because it is in the defensive space with is attractive in these uncertain times. Secondly, this company has been focusing very well on segments in which it has strength. It has been acquiring businesses both in the domestic as well as in the international market. Their operations in both the global as well as the domestic market have been doing very well. The results have been very encouraging.


Buy Cummins India with a target of Rs 450 and a stop loss at Rs 413. Cummins is a leading diesel and gas engine manufacturer and his products are used by the power generating companies, industrial companies as well as automotive companies. Generally most of the companies in these spaces have been facing rough weather lately but Cummins is an exception. Cummins has been managing to hold its head above water despite very difficult market conditions.


Buy Berger Paints with a target of Rs 150 and a stop loss at Rs 137. The paint industry in general has been doing well. Due to good demand for especially from the housing segment Asian Paints is one stock which has done very well over the last one year. We feel Berger can also do performance similar to Asian Paints. The company is on expansion drive to increase its capacity by nearly 100%. The company has also entered into a construction chemical division.


Short Crompton Greaves with a target of Rs 100 and a stop loss at Rs 110.5. The results of this company declared yesterday have been very disappointing. This is one company where the slow down of industrial as well as power sector is obvious on its results. Most of the companies in this power equipment and industrial equipment space have been facing rough weather and Crompton is no exception.


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Saurabh Mittal, Swadeshi Credits


Buy Dishman Pharma with a target of Rs 54 and a stop loss of Rs 49.5. Dishman has reported very good earnings with a PAT of over 80% YoY and projected growth rate of 20% for the coming year. So for today I buy Dishman Pharma.


Buy Aegis Logistics with a target of Rs 148 and a stop loss of Rs 141. Aegis has also procured some orders and it has shown some decent movement in the last couple of trading sessions and I am bullish on this for the day.


Buy Emami with a target of Rs 515, stoploss of Rs 487.

Buy Delta Corp with a target of Rs 64.50 and a stop loss of Rs 60. Delta has come down from a high of over Rs 130 over the last year or so and it is showing some support here at the Rs 62-63 level and I expect a little bounce back for intraday target of Rs 64 on Delta Corp.



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First Published on May 28, 2012 11:04 am
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