Buy Sonata Soft, Empee, Bombay Dyeing: SP Tulsian

In CNBC-TV18's popular show Bull's Eye, SP Tulsian, sptulsian.com shares trading strategy of the day.

Buy Sonata Software with a day target of Rs 24.75 and stop loss of Rs 23. The company having sold its European subsidiary for Rs 80 crore and having absolved from the liability of Rs 24 crore makes it a very good buy because this debt free midcap IT company is having annual turnover of Rs 1500 crore and market cap of just Rs 250 crore. The buying momentum which we have been seeing in the stock for last three days is likely to continue for some more time and hence a buy call. Buy Empee Distiller with a day target of Rs 90 and stop loss of Rs 79. This company is into real estate, breweries, sugar and power because Empee sugar is getting merged into this company and in its avatar will be having all four businesses. Even after this merger the market cap of the company will just be at Rs 160 crore and enterprise value of entire company is just at Rs 600 crore with promoter stake of 65 per cent. The company has strong presence in terms of good brands in the brewery segment. Buy Bombay Dyeing with a day target of Rs 540 and stop loss of Rs 500. This is purely a real estate company because its textile and petrochemical business is not contributing anything and the company has huge land bank of which close to 100 acres are located in the Central Mumbai at Dadar and Lower Parel which are fetching very good realisation to the company where the development work is on. And because the real estate stock are all in focus this has not really participated in the rally and are bound to see the value buying in the coming days and hence a buy call. Short IFCI with a day target of Rs 27 and stop loss of Rs 30.25. The Board of IFCI has cleared the conversion of Rs 923 crore, optionally convertible debentures (OCDs) held by the Government of India into equity. This will make its equity move to Rs 1661 crore.