Buy Suven Life, JB Chemicals, Zee Learn: Ashish Kapur

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

My first pick for the day is a long on Suven Life Sciences with a target of Rs 29 and a stop loss at Rs 25.80. I recommend this company because the performance has been stupendous over the last few quarters and the company is poised to continue growing like this. Both the businesses, drug discovery as well as contract manufacturing nicely compliment each other.
My second pick for the day is a long on JB Chemicals with a target of Rs 78 and a stop loss at Rs 70. It is a company focusing on the formulations business in the domestic market and they are also entering into newer markets and have identified various growth opportunities across the globe. The company’s performance has been very good over the last few quarters moreover there are various triggers like the recently concluded pact with Dr. Reddy’s Laboratory.
My third pick for the day is a long on Zee Learn with a target of Rs 31 and a stop loss at Rs 27.50. This company is a very interesting opportunity in the fast growing education space. The company has a format called Kidzee which is a preschool and also Mount Litera schools which are proper schools going upto 12th standard. The company’s performance has been very satisfactory and the growth is phenomenal.
My final pick for the day is a long on Elecon Engineering with a target of Rs 55 and a stop loss at Rs 49.50. Elecon which is manufacturer of material handling and transmission products has performed fairly well in the previous quarter though the revenues dip marginally but the net profit rose very smartly by 47 percent. Why I recommend the company is basically that this is a very well established company available at a very cheap valuation. It is trading close to its book value and at market cap to sales of only 0.2.