Bull's Eye: Buy Bajaj Finserv, Lupin, Delta Corp, CIL

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 or Investshoppe and Saurabh Mittal of Swadeshi Credits battle it out for top honours SP Tulsian of sptulsian.com Buy Bajaj Finserv with target of Rs 749 and keep a stoploss at Rs 699. The company has posted good Q4 numbers on consolidated basis and the EPS of Rs 61 is better than Q3 of FY12 as well as Q4 of FY11.
Buy Coal India with target of Rs 320 and keep a stoploss at Rs 303. The company is likely to get allotment of about 116 blocks from government of India at reserve price and that is likely to happen in the near future where the allocations of coal block will be done by the government and if that happens it will be seen quite positive for the stocks and as such the stock is ruling at its lower level where the value buying is also likely to emerge. Buy HDFC with target of Rs 644 and keep a stoploss at Rs 611. The share yesterday has corrected because of the reduction of weightage in MSCI index and this goof-up actually happened because the foreign holding has been calculated at 76% while it is permitted to be at 100% in the company which is now at present at 71%. Once this gets corrected the renewed buying is likely to come back into the stock and this stock which has almost seen its bottom having recorded yesterday also seen a good value buy from hereon. Buy Century Textiles with target of Rs 289 and keep a stoploss at Rs 273. The stock looks to have bottomed out and the positive view on its cement and realty sector is taken by the market. Disclaimer: He doesn't have holdings in any stocks discussed but may have recommended them to clients. _PAGEBREAK_ Ashish Kapur or Investshoppe Buy Corporation Bank with target of Rs 434 and keep a stoploss at Rs 400. This is a market now where stock-picking is going to be very attractive and good to look at stocks, which are now available at very decent valuations. Corporation Bank is one such stock, this is a bank which despite a rather flat previous quarter, the asset quality is still very good and moreover the bank has given a very rich dividend of 205%. Buy Welspun India with target of Rs 57 and keep a stoploss at Rs 48. This is a company, which has turned around, has reported very good revenue operating profit as far as net profit in the previous quarter, is available at extremely cheap valuations. So even if we have some concerns regarding the textile especially the terry business in which the company is very strong, we feel that the scrip is available at a very cheap valuation, one of the cheapest stocks in the market today. Again downside is very low and I think moment some buying interest comes in, a very decent pullback is on the cards. Buy Lupin with target of Rs 575 and keep a stoploss at Rs 530. This is one pharmaceutical stock where growth is likely to continue in a very significant way, traction is coming basically from their domination in their strong segments as well as new segments, which the company is entering where the penetration is low and also they are entering new markets where the competition is limited.
Short Patel Engineering with target of Rs 81 and keep a stoploss at Rs 91.20. The reason is that there are a lot of problems which the company is facing. To begin with, there is a huge debt which the company is carrying on its balance sheet which in a way ensures that going forward in a near future, it is going to be very difficult. Besides that, there is a very stretched working capital cycle where the company is operating in. All that doesn’t augur well in a scenario where the interest rates are still very high. Besides that, there is a huge order book, nearly two-thirds of the order book comes from the hydrocarbon and irrigation segments where projects are getting delayed.
Disclaimer: He has a holding in Lupin. Stocks discussed may have been recommended to clients. Saurabh Mittal of Swadeshi Credits Buy Delta Corp with target of Rs 63 and keep a stoploss at Rs 57. Delta Corp showed a decent rally in yesterday’s trade even in a down market and I think it has some more fuel left for technical rally for today as well. Buy Geometric Software with target of Rs 75 and keep a stoploss at Rs 70. This stock did not perform so well yesterday but it did not fall as much as the market did. This stock is shown some movement couple of days back because of some permanent investor taking a stake and I think there should be some more juice left in the stock. Buy Unitech with target of Rs 23 and keep a stoploss at Rs 20. In yesterday’s trade Unitech showed a lot of up movements, it was up almost 8-10% in yesterday’s trade. I think it has some more way to go on the upside. Buy Tata Global with target of Rs 112 and keep a stoploss at Rs 104. Tata Global also showed some strength in yesterday’s trade after the market had fallen almost 2%. I think this stock fundamentally is looking very good for the long term and in the short run it will do well as well. So I see about a 4-5% move in Tata Global in today’s session. Disclaimer: He doesn't have holdings in any stocks discussed but may have recommended them to clients.