Bull's Eye: Buy Bata, United Spirits, Godrej Cons

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, Rajesh Agarwal of Eastern Financiers, Ashish Kapur of Investshoppe and Lancelot D Cunha of ITI Wealth Management battle it out for top honours. Below their top stock picks and analysis: Rajesh Agarwal of Eastern Financiers We would like to recommend Bata India for an intraday trade with a stop loss of Rs 818 and a target of Rs 860. The company is on right track with retail expansion, product launches and restructuring of existing stores. Despite reporting strong set of numbers yesterday with around 30% jump in top line, we saw the counter seeing profit booking because the bottomline, it showed a profit of around Rs 36 crore as against Rs 109 crore last year. But the fact remains that last year numbers included Rs 109 crore from sale of land. So in reality, the bottomline has increased by around Rs 39 crore.   Buy Action Construction Equipment with a stop loss of Rs 30 and a target of Rs 37 for intraday. Trading at around six times price to earning multiple FY13 earnings, we believe it’s highly unvalued and can give group appreciation in longer term also. For intraday, one can buy this with a stop loss of Rs 30 and target of Rs 37.   Buy Ipca Laboratories with a stop loss of Rs 341 and a target of Rs 360. World wide the company is one of the largest suppliers of API and intermediaries and the company is looking at around 15-20% growth in domestic market in FY13 and around 30% overall growth in international segments in the coming four-five years. Trading at PE of 13 times FY13 earnings we believe it’s highly under valued when we compare this with along its peer group. Hence we recommend this as a buy.   Buy Bhushan Steel with a stop loss of Rs 410 with a target of Rs 440. Off late - the counter has witnessed strong accumulation on buzz that some of the big names in steel industry may announce some corporate action with this company and that is the buzz which has resulted in accumulation of this stock. Even on valuation parameters trading at around eight times FY13 earnings which we think is quite reasonable hence we recommend this as a buy.   _PAGEBREAK_ Ashish Kapur of Investshoppe Buy Godrej Consumer Products with a target of Rs 550 and a stop loss at Rs 508. This is a recommendation which I am retaining from my yesterday’s calls. Due to its very strong focus the margins are sustaining very well. Company is also diversifying geographically and is consolidating its presence in all the three continents of Asia, Africa and Europe. We feel that going ahead this strategy of having focused approach on three products and three continents will continue to pay rich dividends. Buy Alstom Projects with target of Rs 430 and stop loss at Rs 397. This again is a recommendation which I am carrying from yesterday’s calls. The near term also the company has managed to maintain a very healthy topline growth despite very challenging environment. Going ahead we expect good revenues to keep picking in as the company is certainly better poised than many of its competitors. It also has entered into to various useful alliances including the one with Bharat Forge to manufacture super critical turbines. Sell BGR Energy with a target of Rs 322 and a stop loss at Rs 348. The reason for being bearish is that this is a company where we are seeing a significant slow down in revenue growth. The existing order book is kind of drying up and new order inflow doesn’t seem to be happening. Due to slow down in the execution of power projects, the company is not able to sustain the momentum which it had till a couple of quarters back. Sell Bank of India with target of Rs 318 and a stop loss at Rs 338. The banks main problem and our reason for being bearish is the asset quality. There has been a lot of slippage in the quality of assets and going further due to their large exposure to the power sector, 5% each to the power projects and State Electricity Boards we feel that the chances of non performing assets going up is very high. Also they have a significant exposure to the aviation sector through loans given to Kingfisher Airlines. Though the company has gone for restructuring yet exposure is very high. _PAGEBREAK_ Lancelot D Cunha of ITI Wealth Management Buy United Spirits with a target price of Rs 802. I believe that the recent news that Diageo is looking at a stake in United Spirits could be pushing the price up and we are seeing the stock move up on substantial volumes. Given the current momentum, I think that you will see some additional buying happen and the stock could move to its target price of Rs 802. Buy Indiabulls Financial Services with a target price of Rs 229. This stock has been seeing some amount of interest rate buying and has been moving up on volumes. I believe this momentum is likely to continue given the trend that we are seeing in the stock for the last three-four days. Given that situation, I think that stock should move up further during this trading day and we would see it probably move to its target price. Sell United Phosphorous. The stock has been falling continuously from its peak. First on the news of the fact, that the cold weather had affected their sales. Second was recently news came in about the competition the CCI trying to impose a penalty and look at cartelization in this space and that has impacted the stock negatively. From a technical perspective the stock has been moving down daily on large volumes which means that the downtrend is likely to continue and I could see it hitting its target price of Rs 102. Sell Aditya Birla Nuvo with a target price of Rs 907. This stock also has been correcting from its peak and we are seeing at every level that there is large amount of selling happening. So given that it is now in a clear down trend I believe at the current downward momentum should take it lower and coupled with selling that we are seeing it should hit its target price of Rs 907.