Bull's Eye: Buy TCS, Shree Renuka, Century Textiles, IVRCL

CNBC-TV18 brings you a brand new week of Bull's Eye. It's the 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, Rajesh Agarwal of Eastern Financiers and Lancelot D Cunha of Sharyans Wealth Management battle it out for top honours.
Below their top stock picks and analysis: SP Tulsian of sptulsian.com
My first call for the day is a buy call on HCL Info with a day target of Rs 50 and stop loss of Rs 44. Buy call has been given because the company has received the UIDAI order as the management service provider and their bid has been treated as the best bid. In fact this order has been awaited by the market for quite sometime though the company has not specified the quantum or the value but it is learned that it is a huge order to the extent of about Rs 2,000 crore spend over next 5-6 year and this can be a big game changer for the company. As such the fundamentals of the company are quite in place.
Second call for the day is a buy call on Jaypee Infra with a day target of Rs 53 and stop loss of Rs 49.50. Informed buying is seen in the stock on Friday in anticipation that the company is soon likely to start its 165 kilometer express way that is Yamuna expressway and that will be seen quite positive because it is being opened one year ahead of the schedule with a concession agreement of 36 years. Apart from that the company also seeing better realization from the development of its own property at Greater Noida which is also going to improve its performance in the time to come and hence a buy call.
Third call for the day is a buy call on Shree Renuka Sugar with day target of Rs 33 and stop loss of Rs 30.90. Government has started now releasing the sugar quota on quarterly basis instead of monthly, which was the system till March 2012 and this is seen quite positive by the market. It is likely to get allowed on first come first serve basis for exports of this one million tonne. If that happens company will be having the larger advantage as the export realization is higher now by about Rs 3 per kilo because of the weak rupee and because of the increase in the global price of the white sugar price which is ruling now at USD 640 per tonne.
Fourth call for the day is a buy call on Lanco Infratech with a day target of Rs 19 and stop loss of Rs 17.80. Some PE investors have shown interest in acquiring stake in the power projects of the company as company already has operational power projects of 4000 megawatts. Apart from that four and half thousand megawatt of the thermal power generation capacity is under way, that is also likely to get commissioned in the next couple of years and if the PE investor comes in that will re-rate the value of the stock or the assets on the lines of IVRCL and NCL and hence a buy call on the stock.

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Rajesh Agarwal of Eastern Financiers
We would like to recommend Raj Television with a stop loss of Rs 142 and a target of Rs 160. In the last 18 years of operation this has become one of the leading entertainment network in South Indian market with around five channels covering the entire gambit of general entertainment, news, music etc. It has rights of around 3000 movies rights which this company plans to digitize and that is going to add to the revenue. Even the last quarter they have shown a smart turn around in operations with a quantum jump in top-line and bottom-line reporting profits as against loss in the preceding quarter.
The second stock in our list today is Century Textiles. One can buy this with a stop loss of Rs 358 and a target of Rs 380. This company has three divisions- textiles, cement and paper. There is buzz in the market even the media has reported that paper division is being aid by international papers which were in news previously for buying Andhra Pradesh paper mills. The buzz is that its being eyed at Rs 2000 crore and the entire market cap of this company is Rs 3500 crore. That includes 40 acre land in Worli which the company plans to develop. The operations also have been good.
The third stock in our list today is Ranbaxy. One can buy this stock with a stop loss of Rs 454 and a target of Rs 480. There has been news that the Canadian subsidiary of this company has received approval for Cholesterol lowering drug from the Canadian authorities and that is going to be a trigger for the stock on intraday basis. Hence we recommend a buy with a target of Rs 480 and a stop loss of Rs 454.
The fourth stock in our list today is IVRCL. One can buy this with a stop loss of Rs 62 and a target of Rs 70. Recently 10% stake has been taken over by Essel Corp and there has been news that the promoters are in talks with some foreign investors for garnering some funds to stop the takeover threat and if this takeover battle continues there can be a near term fireworks in this counter but for an intraday we recommend this as a buy for a stop loss of Rs 62 and a target of Rs 70.

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  Lancelot D Cunha of Sharyans Wealth Management
I have a buy call on Bajaj Electricals with a target price of Rs 199.50 and a stop loss of Rs 190.10. Bajaj Electricals has recently appointed Anant Bajaj as the new Managing Director and this will bring new direction to the company and add new impetus to the company. There is also a proposal that the company is likely to hive off and restructure the engineering and procurement business and the retail consumer business. The consumer business is a business which will have much higher valuation hence I believe that the stock will get rerated when that happens.
I have a buy call on TCS with a target price of Rs 1,184 and a stop loss of Rs 1,150. TCS has received some fresh orders during this quarter and I believe the results that will come out will be encouraging for TCS. I also see that there will be some improvements in the earnings on margins of the company based on the fact that the rupee has again depreciated vis-