Bull's Eye: Buy GMR Infra, BOI, Axis Bank; Sell BHEL

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 Thomas Cook with a day target of Rs 67.50 and stop loss of Rs 63. The stock has been witnessing informed buying and even the dull Q1 results posted by the company has also been overlooked and discounted by the company. This probably indicates that the stake sale likely to happen in the near future at a hefty valuations and probably the informed buying is a result of that and hence a buy call. Buy HDFC Warrants with a day target of Rs 89 and stoploss of Rs 81. One warrant entitles for one share of HDFC in August at Rs 600 per share and due to positive outlook on the share, whatever increase in the share price we will see in the absolute numbers, the same increase in the warrant will happen. So this is a good arbitrage play instead of taking a positive call on HDFC shares if someone can take a bullish view on the warrant that will remain the higher profits and hence a buy call. Buy GMR Infra with a day target of Rs 29.50 and stop loss of Rs 27. in fact we have seen all the infrastructure stocks coming back into the focus and Saturday we have seen informed buying and value buying happening in all those stocks and GMR Infra after seeing an increase in the user development fee (UDF charges for Delhi Airport again seems to be coming back on the radar and short covering is also likely to make the stock move upwards and hence a buy call. Buy Lanco Infra with a day target of Rs 15 and stop loss of Rs 13.20. In this stock also we have seen huge amount of delivery base buying happening on the Saturday in the late part of the day and this also may result into the short covering coupled with the fresh buying interest at the lower level and hence a buy call. Vishal Jajoo Of Nirmal Bang Buy Delta Corp with a target price of Rs 62.8. The company has come out with excellent set of numbers as compared to a net profit of 24 crore last year, the company has posted a net profit figure of 18 crore. However, in last year’s figure of Rs 24 crore, there was a tax write-back to the extent of Rs 22.5 crore. Going forward, with the land based casino coming up at Daman, somewhere around May-June and the addition of one more vessel, which is at least three times larger than the largest vessel adding to the fleet in October to November, the fleet size of the gaming capacity is expected to rise at least five fold from the present levels. Buy Bank of India. This bank had an excellent set of performance couple of years ago however the last two years on account of higher provisioning and overall weakness in the economy, the bank would not post the results as expected. But today we feel that most of the negatives are already there in the price and the bank has the potential to return back to its growth trajectory and on the back of probably to some extent lower provisioning figures, I think the bank should post much better than expected numbers and therefore we have a buy recommendation on this. Buy United Phosphorous with a target price of Rs 118.5. On account of the penalty imposed by CCI, the stock has been hammered, I think it has already seen the worst and it is behind it. If one looks at the corporate governance, this is one of the relatively cleaner managements in the particular sector. If one compares this company with its global peers comparing its size and its distribution reach, it exports to more than 80 countries then it is purely comparable with the global peers like Makhteshim Agan and Nufarm and therefore we feel that valuations are at the rock-bottom level and as far as the earning goes, the company was the first one to announce the profit warning which is a very healthy corporate governance exercise. Short BHEL with a target price of Rs 217. Already the capital goods sector had its own set of problems. Especially it was expected that in the budget there would be some kind of safeguarding exercise undertaken to protect the domestic capital goods companies especially BHEL and L&T, however, there was no such respite and with the latest announcement that a large order from the Rajasthan government got cancelled, looking at the order book and comparing the size of this 12,000 crore, this is very much significant and would impact the company’s order book size significantly. Sharmila Joshi of Fairwealth Securities Buy Axis Bank with a target price of Rs 1,143 and a stop loss at Rs 1,110. I think we have seen a good set of numbers from Axis Bank on Friday and more importantly, the news that there AMC has roped in an investor, I think that should play out positively for the stock going ahead. Buy Jindal Steel with a target of Rs 499 and a stop loss at Rs 482.50. Once again I think a good set of number from Jindal Steel, little beating the street estimates and also the fact that as I said I am expecting a bit of a bounce back across the high beta play. So I would expect a lot of the other metal names to also join the rally but Jindal Steel because it has been beaten down and the fact that we have got a good set of numbers from the company. Buy GMR Infra with a target of Rs 28.50 and a stop loss at Rs 27.35. We have seen a lot of concerns getting overdone on GMR. I would buy this at this price with a longer-term target of about Rs 35 but for the day. Buy Godrej Consumer. I am expecting a good set of numbers from the company today and about a 30% growth in sales year-on-year. So I think even within the FMCG pack, we will find that Godrej Consumer will have a good set of numbers and they have been doing considerably better than the peer set. So this is a stock that I buy with a target of Rs 538 on a stop loss at Rs 522.