Buy Uflex, RS Software, GATI: Agarwal

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

One can buy Uflex with a stop loss of Rs 106 and a target of Rs 119. This company is the largest flexible packaging company in India as well as the lowest cost producer in India. They have vertical integrated operations and give end to end solutions to its clients. Some of the big names in FMGC like Unilever. Nestle, Britannia etc are their clients. The operations are spread not only in India but also in Dubai, Mexico and Egypt. One can buy RS Software with a stop loss of Rs 184 and a target of Rs 198. This company provides fraud detection processes and payment process to the industry and the main clients are the credit card companies like Master Card, Visa, American Express etc. They have monopoly in their services and performance has been very good. June quarter top-line saw a jump of around 43% and the bottom-line saw a jump of 91%. One can buy Transformers and Rectifiers India with a stop loss of Rs 144 and a target of Rs 160. This company which is basically into transformers has fallen into bad times because of the woes of power sector which we have witnessed in the last 3-4 quarters. But with government reforms taking place in power sector and government initiatives to reform the sector we think it is high time that power sector companies and associate companies are going to see better performance in the coming quarters. One can buy GATI with a stop loss of Rs 40 and a target of Rs 45. This company is basically into logistic business with 70% business coming from Express Cargo division. They have recently sold 30% stake to a Japanese company in the Express Cargo division and that money is going to reduce the debt burden of the company which again is going to reduce interest cost by around Rs 30 crore. They have even rescheduled FCCB which were due in December.