Buy TTK Healthcare, Finolex Ind, Berger Paint: Kapur

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

Buy TTK Healthcare with a target of Rs 425 and stop loss of Rs 386. This company manufactures and markets pharmaceutical products as well as consumer products and various medical devices. Besides marketing their own products they also distribute products of various other brands including Brylcream, Kiwi brand shoe care as well as Durex and Kohinoor contraceptives. The company has been doing fairly well and despite difficult economic conditions the growth both in the turnover and the net profit is encouraging. Buy Finolex Industries with a target of Rs 68 and stop loss of Rs 62. It is a recommendation which I am retaining from yesterday’s picks mainly because the momentum in the stock is good and the stock is available at a very attractive valuation. Moreover given the fact that their company is undergoing an expansion and agricultural credit has been increased, we expect the volume growth to be very good going forward. Also margin improvement is likely to happen as their captive power plant has been commissioned. Buy Berger Paints with a target of Rs 159 and stop loss of Rs 144. This company has been doing very well and going forward we expect both volume and margins to grow significantly. The company is undergoing an expansion drive which will double its capacity in the near future and given its focus on higher margin segments like water based colors we expect their margins to improve significantly. Buy Orbit Corporation with a target of Rs 56.50 and stop loss of Rs 51. Given company’s focus on redevelopment projects in Mumbai and the fact that there is a serious effort by the management to deleverage its balance sheet and free capital flows, we are bullish on this company. Disclosure: I have a holding in Berger Paint. Stocks discussed may have been recommended to clients.