Bull's Eye: Buy Balaji Tele, TCS, M&M, HUL, Sun Pharma

CNBC-TV18 brings you a brand new week of Bull's Eye. It's the 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, Rajesh Agarwal of Eastern Financiers, Ashish Kapur of Investshoppe and Lancelot D Cunha of ITI Wealth Management battle it out for top honours. Below their top stock picks and analysis: Rajesh Agarwal of Eastern Financiers
One can buy Balaji Telefilms with a stop loss of Rs 43 and target of Rs 51 for intraday. This company has fallen into bad times from the last two-three years but now the operation seems to be turning around with two of its serials ‘Bade Achhe Lagte Hain’ and ‘Parichay’ getting better TRPs. We believe that in the coming quarter numbers will be very good. Nine months they have reported profit of around Rs 2 crore against loss of Rs 10 crore and this quarter the profits are going to include the numbers of ‘The Dirty Picture’ which has been a blockbuster hit with around Rs 85 crore of net revenue collection worldwide.
One can buy Honda Siel with a stop loss of Rs 410 and target of Rs 485. With a kind of power shortage we are witnessing, we think the power division is going to do extremely well. On valuation parameters the company is valued at around Rs 400 crore marketcap out of which company is sitting on cash pile of Rs 100 crore. The numbers have been good, it’s trading at a PE of around 12 and price to book value of around 2. We think this debt free company is going to give good dividend in the near future because last year dividend of 75%.
One can buy Jamna Auto Industries with a stop loss of Rs 155 and target of Rs 190. This is one of the large parabolic spring manufacturer in India and third largest in the world. The company has shown sharp turnaround in the last few quarters. Considering the buoyancy in the auto sector specially the commercial vehicle segment we believe this company is going to do well in the near future. On valuation parameters also it’s trading at a PE of 11 FY13 earnings hence we recommend this a buy.
One can buy Wockhardt with a stop loss of Rs 682 and target of Rs 720. These targets are for intraday. For longer term horizon it may go even higher. The company has shown strong set of numbers in Q3. Going forward once the Danone deal is done by August we believe that the FCCB repayment will be done and the company will be coming out of CDR then there will be clear visibility about the operations of the company. On valuation parameters trading at a PE of around 7 while its peer group companies are trading at a PE of 11 the company is likely to report an EPS of Rs 90 in FY13.
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  Ashish Kapur of Investshoppe
My call is a long position on Hindustan Unilever with a target of Rs 445 and stop loss at Rs 410. HUL is a prime example of defensive space where though the results are not likely to be brilliant but nevertheless the performance is likely to sustain going forward. The company is likely to maintain a decent growth in both the topline as well as bottomline going forward. The stock has broken out of ten year consolidation range. We expect the performance to continue in the near term.
My call is a long position on Sun Pharma with a target of Rs 620 and stop loss at Rs 570. Going ahead we expect a few important triggers which could keep interest in the stock alive. One is the monetisation of the Para-IV pipeline in US, second would be the customised products launch in the American market and third Taro which they acquired last year is doing very well in sustaining its performance. We expect this good growth to sustain giving good boost to their overall earnings growth.
My call is a long position on Amar Remedies with a target of Rs 160 and stop loss at Rs 146. This is a premier company in personal hygiene business in India and has good footprint across various countries in the world. Beginning with oral care the company has forayed into various other personal hygiene products. We like the way the company has sustained its performance in the last few quarters and being the market where individual stock performances are being rewarded we believe Amar Remedies is a good space for investors to put their money in.
My call is a short position on Reliance Capital with target of Rs 320 and stop loss at Rs 350. The performance of Reliance Capital has been dismal over the past few quarters. Markets are in no mood to forgive any company which perform so poorly and give results below market expectations. The positive on the stock on Nippon acquiring stake in their insurance business have been discounted and going ahead this is one stock in ADAG group which has no positive triggers left. Fundamentally also the performance has been dismal and likely to continue being like that.
 
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  Lancelot D Cunha of ITI Wealth Management
My first call for the day is a buy call on Fortis Healthcare. Fortis Healthcare has been moving up for the past few days with good volumes. The stock has moved up. It has broken out and I expect the momentum to continue forward. It is actually even a good long-term buy. For FY12-13 we are expecting good revenues on account of the acquisition of its Fortis Global operations and it looks to be EBITDA positive. Given the current momentum I expect Fortis to move up to its target price of Rs 112.75.
My second call for the day is Mahindra and Mahindra. It is a leading player in the multi-utility commercial vehicle space, the passenger vehicle space and the tractor space with revenues of Rs 27,800 crore for FY12 and profits of about Rs 2,500 crore expected in FY12 Mahindra and Mahindra should be providing us with a good performance for this year and extremely good growth prospects. In the short run, it has broken above its 200 DMA at Rs 726 and I expect the stock to move further given the current momentum that we have seen in the stock, so it could hit its target price of Rs 744.50.
I have a buy call on TCS. With HCL Tech coming out with better numbers after the disappointing Infosys results I think the trend is to expect better results from TCS and the market has been buying into TCS in anticipation of better results. TCS is likely to announce its results shortly and that should be a boost for the stock. Given the fact that TCS is expected to grow by 12-13% in FY13 I think even on the long-term basis TCS looks attractive. On the short run basis, given the fact that results are around the corner I expect some interested buying to take place to push it up to its target price.
My fourth call for the day is a buy call on Halonix at price of Rs 73.20 with a target price of Rs 75.90 and the stop loss of Rs 71.50. I believe Halonix Lamps also has a very active investor in terms of Actis who has a majority stake in the company and that should be positive for the company. I have seen this stock move up on substantial volumes over the last two-three days and given the fact that we are seeing this volume growth with price movement I expect the trend to continue and it should hit its target price.