Buy Dhampur Sugar, Ceat, ABB: Ashish Kapur

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

Long on Dhampur Sugar with a target of Rs 76 and a stop loss at Rs 69. Dhampur sugar is doing very well. The last quarter results were excellent and the company being an integrated sugar player the benefits from having a good power and chemicals business as well. Moreover, the Rangarajan Committee report is said to be benefit this sector in a big way and Dhampur being one of the players doing quite well is likely to continue benefitting from higher volume as well as the impending merger with JK Sugar. Long on Ceat with a target of Rs 125 and a stoploss at Rs 114. Though debt remains a concern with this company, yet the recent moves to start outsourcing many of its central parts in an effort to save capital expenditure is something which we quite appreciate. Also the company is in a stage of renegotiating with lot of its vendors to reduce its expenditure. All this is likely to result in huge savings going forward. Long on ABB with a target of Rs 815 and a stop loss at Rs 773. This company which is a global leader in power and automation solutions is doing fairly well. Even despite the slowdown in the atomic growth the company has managed to report a decent increase in revenue. Also the order inflow is very encouraging. Going forward we feel the company would do well as it’s investing Rs 250 crore to ramp-up its capacities. Long on JK Cement with a target of Rs 278 and a stop loss at Rs 251. Cement sector is doing very well and is enjoying a very strong momentum. JK Cement is trading at a very decent valuation and offers an exposure to the high margin white cement segment. The company is expanding regionally and also augmenting its capacity. So, all this augurs well and we feel this is one stock which can safely be bought for the near term.