Buy Madras Cement, Triveni Turbines, Ceat: Kapur

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

Long on Madras Cements with a target of Rs 210 and a stop loss at Rs 195. Our reason for being bullish on this stock is that this is one of the few large cement players still available at a decent valuation. The company has been performing very well and we expect the performance to sustain, especially considering the fact that a capacity expansion program which the company had undertaken has got completed. So with the volume growth also kicking in the performance can only be expected to improve. Long on Triveni Turbine with a target of Rs 56 and a stop loss at Rs 51. Triveni is very well established manufacturer of steam turbines and enjoys a 60 percent market share in the domestic market. They have a very well diversified set of customers present in various industries, so to that extent their earnings are well cushioned. Long on Ceat with a target of Rs 130 and a stop loss at Rs 118. Ceat is a company which has shown a very good turnaround in performance in the last quarter results. Moreover with the radialization of the truck and bus segment we expect volumes to grow further. Debt is a concern when it comes to Ceat, but the company has an instituted a program to start outsourcing a lot of its manufacturing in a bid to reduce capital expenditure. Long on Visaka Industries with a target of Rs 150 and a stop loss at Rs 136. Visaka is the second largest manufacturer of cement sheets and given the demand for affordable housing it is a very good segment to be in. The business has been doing very well and the company’s performance over the previous few quarters has been very encouraging. Moreover, the company is still available at a very cheap valuation and has a very good track record of dividend payments. So given all that we feel it is a very good stock to go long on.