Buy Plethico Pharma, West Coast Paper, Sintex: Tulsian

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

Buy Plethico Pharma with a day target of Rs 290 and stop loss of Rs 274. I am continuing this buy call which I gave yesterday also because of the margin call having eased and that has resulted into the value buying happening for the last one week or so and apart from this all the midcap pharma stocks are seen to be in focus now and even this stock is witnessing the value buying and hence a buy call. Buy West Coast Paper with a day target of Rs 74 and stop loss of Rs 66. The stock has witnessed huge volume which has resulted into almost 50% delivery on the hopes that either the promoters are looking to sell their stake in the company or its 37% associate company Rama Newsprint is likely to see the stake sell by the promoter and if that happens West Coast Paper will have the curtailment of its losses because of the losses incurred by Rama Newsprint plus having realized a good amount from the stake sell in that company. Buy on Sintex with a day target of Rs 59 and stop loss of Rs 55.50. The stock has been witnessing value buying coupled with short covering mainly because the stock is seen to be a value buy, because the share is now ruling at a PE multiple of 5 and the kind of financial position the company enjoys with cash balance of Rs 500 crore and the expected cash flow of about Rs 400-450 crore for FY13 it will not see any problem in meeting its FCCB liability of about Rs 1,200 crore which will fall due in March 2013. Buy on DEN Networks with a day target of Rs 132 and stop loss of Rs 124. This stock is seeing informed buying because the company is seen to be a big beneficiary of the compulsory digitalization move having initiated for four metros which is to be implemented by 31st October and because the company is having strong presence in NCR region they are likely to stand beneficiary from this move and apart from that some big corporate actions are expected to happen in the company and hence a buy call.