Buy Zicom Security, V-Guard, KEC Inter: Ashish Kapur

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

My first recommendation for the day is a long on Zicom Security Systems with a target of Rs 82 and a stop loss at Rs 74. Now it is a leader in the field of electronics securities solutions in India. The company underwent a transformation in the last year and gave up the manufacture of products to focus only on being a service provider. We feel that this move will be very beneficial in the long run. The company also has taken a lot of initiatives which gives us confidence that their performance which has been fairly consistent over the last few quarters, will grow going forward.
My second recommendation for the day is a long on V-Guard Industries with a target of Rs 450 and a stop loss at Rs 408. It is a leading manufacturer of consumer durables. The company has been doing fairly consistently over the last few quarters. Going forward, we expect this performance to further grow on the back of company’s initiatives to diversify both geographically as well as product wise, they are launching various home products such as electric fans, heaters, inverters etc.
My third recommendation for the day is a long on Sundaram Finance with a target of Rs 940 and a stop loss at Rs 865. It is a very well established company and has very strong credentials and a very good credit rating on its debt and various other instruments which they have used to raise capital. That company also enjoys very healthy margins and a very good asset quality. This reflects on the company’s very stringent credit appraisal norms and a very conservative approach to financing business.
My final recommendation for the day is a long on KEC International with a target of Rs 81 and a stop loss at Rs 73. It is a very well established EPC player and provides turnkey solutions in the field of transmission and distribution as well as telecom and power and telecom cables. The company has a very good track record and more over the company currently has a very strong order book. It is also setting up a new Greenfield facility in Vadodara for manufacturing high voltage and extra high voltage cables.