Buy Aarti Ind, Everest, Oswal Chem: Agarwal

In CNBC-TV18's popular show Bull's Eye, Rajesh Agarwal of Eastern Financiers shares trading strategy of the day.

Buy Aarti Industries with a stop loss of Rs 80 and target of Rs 92. This company is into chemicals, makes benzene special chemicals and intermediates which are basically used in power, paper and petrochemical industry. It has around 18 plants spread over 4 states. The performance has been quite better from the last few quarters. June quarter bottom-line was up by around 39percent. Buy Everest Industries with a stop loss of Rs 224 and target of Rs 240. This company is into building solution apart from being a leader in domestic markets, export to Europe, Africa and Australia. June quarter top line was up by around 20 percent, bottom-line was flat due to higher tax provisioning and higher other income last year due to which we see the bottom-line being flat. Trading at a PE of less than 6, the valuations are cheap. Buy Oswal Chemicals with a stop loss of Rs 31.50 and target of Rs 39. This is a trading company having interest in real estate and they have a net worth of around Rs 2000 crore. Recently they have entered into a contract to develop real estate projects in Chembur which is going to add immensely to the bottom-line once the projects are completed. Buy 20 Microns is a continue from our Monday’s recommendations with a revised stop loss and target and the revised stop loss for today is Rs 113 and a target of Rs 123. Disclosure: I have a holding in 20 Microns. Stocks discussed may have been recommended to clients.