Bull's Eye: Buy IGL, Jubilant Food; short BGR, Educomp

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 Indraprastha Gas (IGL) with a target of Rs 218 and keep a stoploss at Rs 203. Buy call has been given because the company has posted very good Q4 numbers with an EPS of close to about Rs 6 while for whole of FY12 the EPS is close to about Rs 22. The company has posted a growth in its PAT by about 17% to about Rs 81 crore against Rs 69 crore having posted by the company in the same quarter of the previous year. Buy TTK Prestige with a target of Rs 3,150 and keep a stoploss at Rs 2975. The stock seems to have come again on the buying radar of the traders after the dull Q4 numbers having posted by the company and yesterday we have seen good amount of informed buying into the stock which is likely to continue for next few days. Buy India Glycol with a target of Rs 145 and keep a stoploss at Rs 135. The company has posted very good numbers for Q4 with rise in its EBIT by more than 100% and in spite of the provision of the extraordinary expenses in Q4, the EPS of the quarter is placed close to above Rs 10 for whole of Rs 24 EPS having posted by the company for FY12. Apart from that the company has increased the dividend by 100% and has declared a dividend of 30 which indicates the positive view ahead on its working. Buy Alstom T&D with a target of Rs 156 and keep a stoploss at Rs 142. The company has posted very good numbers for March 2012 quarters with an increase in its PAT by about 56% while the top-line is grew by just 2%. The company has declared a dividend of 90% for 15 months ended March 2012 and the 73% stake held by Alstom into this company and the good working ahead instills the confidence. Disclaimer: He doesn't have holdings in any stocks discussed but may have recommended them to clients. _PAGEBREAK_ Ashish Kapur or Investshoppe Buy Jubilant Foodworks with a target of Rs 1,230 and keep a stoploss at Rs 1,115. The company reported outstanding numbers with a very significant increase both in the top-line as well as the bottom-line. Though the company is richly valued, we believe keeping in mind the strong growth momentum and also the additions which they are doing in opening new Domino’s stores as well as rolling out Dunkin Donuts stores in the near future which would keep in this stock alive at least in the near-term. Given the economic uncertainties it’s best to stay with stocks where the growth is certain and does not hinge upon any economic revival happening. Buy Cadila Healthcare with a target of Rs 805 and keep a stoploss at Rs 745. This stock too is in the defensive space and so has the safety of low downside risk coupled with good growth which the company has been registering. The previous quarter also both the top-line as well as the gross margins showed a very decent increase. They also have a very good consumer products exposure through Zydus Wellness. The company has been doing well and we expect the performance to continue. Short Welspun Corp with a target of Rs 107 and keep a stoploss at Rs 117. The entire segment of welded pipes has been facing a lot of pressure lately as competition has increased and margins are under pressure. Moreover, nearly all oil companies have scaled down their expansion drive due to uncertainties and volatile movement of crude prices. This does not auger well and Welspun also has been facing the heat. Moreover their US operations are going to be under pressure. Short BGR Energy with a target of Rs 255 and keep a stoploss at Rs 280. BGR Energy has been facing a lot of pressure. There is a shrinkage in new order inflow. They had recently announced getting seven orders from NTPC. But it now seems that that order will also get scaled down as a number of contracts would probably go to rival companies like BHEL. So significant slippage in fresh order coupled with margin pressure is the reason why we are recommending a short here. Also the previous quarter results were quite dismal. Disclaimer: He has a holding in Jubilant Foodworks. Stocks discussed may have been recommended to clients. _PAGEBREAK_ Saurabh Mittal of Swadeshi Credits Buy Divis Labs with a target of Rs 920 and keep a stoploss at Rs 850. Yesterday a lot of pharma companies came out with their results and the whole sector has done well as a whole and I expect the trend to continue for today’s trade. Short Educomp Solutions with a target of Rs 145 and keep a stoploss at Rs 162. The stock performed poorly in yesterday’s trade. Short Dena Bank with a target of Rs 75 and keep a stoploss at Rs 85. Given the inflation figures that came out yesterday the banking sector is going to be under pressure because the RBI will be forced to not cut rates this time around given the higher inflation figures. So the banks are going to suffer because of that in the short term. Buy Man Industries with a target of Rs 110 and keep a stoploss at Rs 97. Man Industries stood out yesterday in a down market and I expect the trend to continue with it for today as well.
Disclaimer: He doesn't have holdings in any stocks discussed but may have recommended them to clients.