Buy JK Cement, Berger Paint, UB Holdings: A Kapur

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

Long on JK Cement with a target of Rs 230 and a stop loss at Rs 204. Cement companies generally have been doing well and bucking the overall downtrend in the market. JK Cement too has picked up good momentum. The company reported good earnings growth in the previous quarter. Going forward we expect this company to continue doing well. It is present both in the white as well as grey cement market. Long on Berger Paint with a target of Rs 150 and a stop loss at Rs 138. This company is on a major expansion spree and is set to double its capacity over the next couple of years. Along with the increase in volume the margin is likely to improve as the company is focusing more on higher margin water based paints. Also a large part of the area where they have a strong presence there is a shift from distemper to emulsions so all this augurs very well and we feel that even the near future the prospects are bright. Long on UB Holdings with a target of Rs 100 and a stop loss at Rs 91. This group has borne the brunt of negative news for quite sometime. Things are likely to improve in the near future as the restructuring of this group gets finalized. Since UB holding has a major stake in lot of company of this group they will be a major beneficiary. Also we feel that the valuation currently of this company is very attractive. Long on Jubilant Foodworks with a target of Rs1,265 and a stop loss at Rs 1,165. Though the valuation of this company are high we are still sanguine about the growth prospectus of this company. Given the fact that this is a standalone company focused only on the consumer move in India we feel that the high valuations are justified. The company has a 55% share in the organized pizza market and the Domino’s brand is now well established amongst the youth in this country.