Bull's Eye: Buy PFC, Bharat Forge, Cummins, Indian Hotel

CNBC-TV18 brings you a brand new week of Bull's Eye. It's the 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 of Investshoppe and Lancelot D Cunha of Sharyans Wealth Mgmt battle it out for top honours.
Below their top stock picks and analysis: SP Tulsian of sptulsian.com
My first call for the day is a buy call HDFC Warrant with a day target of Rs 107 and a stop loss of Rs 96. One Warrant entitles for one share of HDFC at Rs 600 in the month of August 2012. So from hereon whatever increase in the share price which we see will also be seen in the Warrant as well. Suppose if the HDFC rises by Rs 10 in a day even HDFC Warrant will rise Rs 10 in a day. This is a better opportunity to play by making low investments of Rs 100 instead of Rs 700 and enjoying the full benefits of the appreciation effectively giving higher percentage of return.
Second call for the day is again a buy call on Jaypee Infra with a day target of Rs 48.50. The buy call is because the company has posted very good Q3 numbers with PAT of close to about Rs 400 crore against nine months PAT of FY12 at about Rs 950 crore. Apart from that the company will soon be starting its 165km express way in next one month immediately after UP election gets over. So process of share accumulation is seen in the stock and hence a buy call.
Third call for the day is a buy call on PFC with a day target of Rs 196 and stop loss of Rs 183. The company has posted excellent Q3 numbers coupled with 50% interim dividend. In fact the forex gain of over Rs 400 crore has boosted the Q3 results optically resulting into an EPS Rs 8 plus for the quarter. We have been seeing renewed buying coupled with short covering for the last three four days in the stock and this momentum or this trend is likely to continue and hence a buy call.
Last call is a short call on Everest Kanto with a day target of Rs 36 and stop loss of Rs 40.30. The company has posted very poor results, in fact all its four units whether in India, China, US or Europe all have performed very badly. Even if we see the performance before providing for the exchange loss, the net loss is about Rs 2 crore. While the same used to be at a net profit of close to Rs 20-25 crore in the preceding quarters. If you add the forex losses which is to the extent of Rs 25 crore the net loss has further worsened the situation.
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  Ashish Kapur of Investshoppe
My first call for the day is a long position on Bharat Forge with the target at Rs 323 and a stop loss at Rs 296. This company has diversified very well and is relying more and more on non-automotive businesses. This coupled with a very good traction in the automotive segment and very good performance from their overseas businesses is the reason why we are bullish on this company. Bharat Forge is a very cash rich company having very low manageable levels of rate.
My second recommendation for the day is a long position on Talwalkars. This is a company which is likely to benefit from the growing health awareness in India. It is also a play on the rising disposable income of the middle class. The company is doing fairly well and is standing at a very good rate. Quarter four is likely to be the best quarter for this company, so we expect the base on the expectation of a good quarter four. This company can even in the near term give good upside. For the day we have a target at Rs 169 and a stop loss at Rs 149.
My third call for the day is a long position on Thermax. This is a company which is likely to benefit from any revival in the industrial capex cycle. The company despite concerns on slowdown of economic growth has managed to perform much better than many of its peers. The company