Bull's Eye: Buy IDFC, NIIT Tech,United Phosphorous

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 of sptulsian.com

Buy Tube Investment with day target of Rs 152 and stop loss of Rs 137. This Murugappa Group company is having topline of close to Rs 7000 crore. The company has posted excellent Q4 numbers with growth of 93% on its bottom line on YoY basis and the future of the company is seen to be quite positive and robust.

Buy Raj TV with day target of Rs 180 and stop loss of Rs 163. This company has posted very good numbers for Q4 with bottom line of close to about Rs 4.65 crore against loss of 55 lakhs posted by the company in the same quarter of the previous year. Apart from that with a respectable promoter stake of 73% and ambitious growth plans of the company lies ahead with the production of Tamil films and launch of other products in the near future and hence a buy call.

Buy KPIT Cummins with day target of Rs 94 and stoploss of Rs 83. This is auto, energy and utility, technology solution provider and the company has posted very good numbers for Q4 and with increase of 140% over the corresponding period of the previous year. The overall performance for FY12 has also been very good and the same trend is likely to get repeated in FY13.

Buy NIIT Technologies with a day target of Rs 276 and stoploss of Rs 256. Informed buying is seen in the stock ahead of better Q4 numbers, which will be declared on Friday because the Q3 results of the company have been quite robust. Apart from that this company is seen to be cheapest amongst the midcap IT stocks.

Sharmila Joshi, Fairwealth Securities

Buy United Phosphorous with a target of Rs 119.80 and a stoploss at Rs 115. The stock has corrected significantly post the penalty that has been slapped on it. It’s a huge penalty and given that the stock corrected quite a bit. We have seen the numbers, the numbers were ok but the reason why I am enthusiast about the stock is that the company is considering a buyback on May 7th. I think when you’re stock has corrected so much its one of the best things that a company can do buy professing their commitment and their confidence in the stock, so I think the buyback comes at a very right time. So this I buy with a target of Rs 119.80 and a stoploss at Rs 115.”

Buy Syndicate Bank with a target of Rs 107 and a stoploss at Rs 103. Overall I am positive on banking post the interest rate cut. Again the numbers that we see from the larger banks have been very good. Even the numbers that we saw from Vijaya Bank were quite decent and Syndicate bank too is reporting numbers this week, so I would want to buy it ahead of the numbers. This I buy with a target of Rs 107. We have a slightly longer term, a 6, 7, 8 month kind of a target of about Rs 140 on Syndicate Bank.

Buy Patel Engineering with a target of Rs 110 and a stop loss at Rs 106. A stock that is recovering from the low levels that we saw in December, we are seeing a good order ramp up and some good order wins in these last 2-3 months which is why I have the confidence that the stock will do even better, I would think that it would go to Rs 120 very soon but for the day I am buying with a target of Rs 110 and a stop loss at Rs 106.

Buy IDFC with a target of Rs 124.60 and a stoploss at Rs 119.60. Overall I see a better environment for infra lending going ahead and this leads me to believe that IDFC will be a stock that will do better than what it has been doing in the last couple of quarters or this last year. I would have a longer term target of about Rs 145 on the stock. For the day I buy it with a target of Rs 124.60.

Vishal Jajoo of Nirmal Bang

Buy Hyderabad Industries with a target price of Rs 399. The EPS for the quarter stood at Rs 24 and for the year at Rs 81. It’s a 5 decade old company belonging to the Birla Group, leader in its segment. The company has announced a final dividend of Rs 12 per share. If one takes the interim dividend of Rs 6.5 into consideration, that dividend yield at the present price is in excess of 5%.

Buy NIIT Technologies with a target price of Rs 269. If one looks at the 9 months result then the company has clocked more than 150% increase in its order inflow. The balance sheet is clean, if one looks at the present market cap the cash in cashed equivalent in the book is more than Rs 30 per share. The results are expected round the corner and we expect the company to close this year with earnings anywhere between Rs 32-35. If one looks at the present valuations then this stock is available at the cheapest level amongst the midcap tier II companies.

Buy United Phosphorous. The company clocked 32.5% growth in this year as compared to the revised guidance of anywhere between 25-30%. On top of it the management has also the board meeting has been scheduled for a buyback program and therefore the valuations seem to be very much attractive and if one looks at the way the stock has been hammered badly out of shape over the last few days on account of the penalty imposed by CCI. I think most of the negatives have already been factored in the stock price.

Buy Navin Fluorine. The company came up with very good set of numbers and it has rewarded in the same fashion to the share holders. If one takes the final dividend of Rs 6.5 into consideration and a special dividend of Rs 60 then on an investment at present price which is lower than Rs 370, the dividend itself works out to Rs 66.50. One also has to add the interim dividend which the company had announced in the past. So therefore all in all if one looks at the dividend, the earnings, the group and the way the company has been posting the numbers, I think this stock has got a long way to go.