Bull's Eye: Buy Sonata Software, Wipro, IRB Infra

Bull's Eye, CNBC-TV18's 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, Vishal Jajoo Of Nirmal Bang and Sharmila Joshi of Fairwealth Securities battle it out for top honours. SP Tulsian, sptulsian.com Buy Sonata Software with a day target of Rs 24 and stop loss of Rs 21.50. We have been seeing the value buying in the stock for the last couple of days ahead of its Q4 numbers, which is likely to be good. The stock is ruling at a 50% of its book value inspite of having good size with a topline of about 2,000 crore per annum. Buy HDFC Warrants with a day target of Rs 83 and a stop loss of Rs 73. One warrant entitles for one share of HDFC in August 2012 at Rs 600 per share. HDFC is likely to declare its results on Monday which is seem to be quite good and the growth of 20% is expected for FY13 as well. So this is a very good arbitrage play because whatever increase in the share price we will see will get reflected with the same amount in the warrant also thus giving the very good returns on the investment made and hence a buy call. Buy Saint-Gobain with a day target of Rs 65.20 and stop loss of Rs 60.80. This stock has seen a delisting play in view of 86% stake held by Saint-Gobain who is one of the leading global players in the glass making industry and the share has been witnessing informed buying for the last two-three days and the stock has recorded 52-week high which indicates that the delisting move is likely to get initiated very soon and hence a buy call. Buy Finolex Cables with a day target of Rs 39 and stop loss of Rs 32.50. Buy call has been given on the stock because the company has posted extremely robust number for Q4 with growth in PAT by about 140% on a year-on-year (YoY) basis with EPS having posted for the quarter at Rs 2.90. This indicates that probably the company should be able to post an EPS in double digit for FY13 which makes the share to rule in the P/E multiple of about 4 times and hence a buy call. Disclosure: I have holdings in HDFC Warrants & Saint-Gobain. _PAGEBREAK_ Vishal Jajoo, Nirmal Bang Buy IRB Infra with a target price of Rs 158.5. On the basis of a specific announcement, the stock has corrected by 23% over the last one month. However, the call that the management had hosted clearly specifies that most of the projects are on track with 17 of the projects going on, 11 out of which are operational; I think things are on track with regards to their execution. On the basis of this specific announcement, the stock has been hammered our of shape, which was unwarranted and we expect a bounce back in the stock. Over the medium-term to long-term we have a much higher target of Rs 235. However, for the day the target stands at Rs 158.5. Buy Wipro at Rs 415.8. If you consider the top three leaders, TCS, Infosys and Wipro, Infosys has been consistently moving up for the last several days, TCS has run up after the 12% phenomenal rise post results and Wipro has underperformed. Looking at the way the currency is moving, I think one of the IT stocks is a ‘must have’ in the portfolio and we have chosen the underperformer amongst the three i.e. Wipro. Buy Allahabad Bank. If one looks at the earnings, the price to book value multiple and dividend, which stood at Rs 6 last year, there is a significant value in the stock. If one looks at Q3 FY12 numbers, the asset quality is quite good, they don’t have exposure much to the stress areas and therefore we have a buy call with a target price for the day at Rs 173.2. Buy Mount Everest Mineral Water with a target price of Rs 103.25. The latest announcement signifies the Tata Group’s plan, which has acquired more than 50% stake in the company through Tata Global Beverages. This direct acquisition is in line with the Tata Global Beverages’ strategy of not only changing the name from Tata Tea to Tata Global Beverages but of being a complete beverages company rather than just being a tea and coffee company. So with this acquisition at a price of Rs 198 whereas the present price is below Rs 100, I think the stock has got a long way to go and the prospects of the company are quite bright. Disclosure: I don't have holdings in any stocks discussed but may have recommended them to clients. _PAGEBREAK_ Sharmila Joshi, Fairwealth Securities Buy Shree Renuka Sugars with a target of Rs 33.25 and a stop loss at Rs 31.80. I think the news that sugar exports have been freed is good news because whatever additional money that they get goes straight to the bottomline and this is an industry that has been going through a lot of pain. Shree Renuka Sugars is recovering from one if its lowest levels of about Rs 29. I certainly think that there is a further upside probably you should see this move taking a stock to Rs 37-38 level. Buy NIIT Technologies with a target of Rs 274 and a stop loss at Rs 263. Results are expected sometime in the next three-four days. Good set of numbers is what I expect from NIIT Tech and I think coupled with the fact that one has been hearing that the promoters are looking to exit. I think both the things add to making it an attractive stock, the result expectation as well as development on this news. I think NII Tech is one of those good midcap IT plays which is available at good valuations. Buy Finolex Cables with a target of Rs 34.75 and a stop loss at Rs 33.30, a very good set of numbers from Finolex Cables. We did see the company reporting very average numbers in the last quarter where numbers were hit because of interest rates took a hit as well as forex losses etc. But we are seeing a very smart recovery in this quarter and this I think means that going forward as well things seems to be now falling back on track given the fact that the demand from the user industry stays strong as well as they have a facility that has come online. So both the things contributing to Finolex Cables going ahead. Buy Info Edge with a target of Rs 782 and a stop loss at Rs 750. Once again a very good set of numbers from Info Edge. The net worth is expected to be up in the range of 9% at around 29 crore. They have reported 40 crore, so I think that is significantly better than what the street was expecting. The Q4 is good for Info Edge but I think 40 crore means that it has been a very strong quarter for the company. As well as the fact that they have announced 1:1 bonus so I think both stocks should make Info Edge an attractive stock to buy. Disclosure: I don't have holdings in any stocks discussed but may have recommended them to clients.