Buy Amara Raja, LIC Housing, DCB, Aurobindo Pharma: Joshi

In CNBC-TV18's popular show Bull's Eye, Sharmila Joshi of Peerless Securities shares her trading strategies for the day.

One may buy Amara Raja Batteries with a target of Rs 334 and a stoploss of Rs 321. The Q2 results that we got were very good, we did see a very good sales performance from Amaron Batteries. The UPA segment was a little lower. What I liked about the results was the fact that Amara Raja Batteries is actually gaining market share plus they have taken a price hike and this means that their margins are fairly good and likely to remain so. They have a capacity expansion coming up. All things put together the kind of numbers that they have delivered on the top line and bottom-line makes me think that this stock will get a better EPS rating. One may buy LIC Housing Finance with a target of Rs 212. We are very close to getting some kind of news on the banking license front and with some of the big names withdrawing from the competition I think the chances of LIC Housing Finance improve significantly. Also on pure earnings perspective I would have a target of about Rs 260 on the stock. Of course if one was to hear anything on the banking license front which we are likely to in next two-three weeks then further rally on the stock is on the cards. One may buy Development Credit Bank (DCB) with a target of Rs 52 and a stoploss of 49.80. We are seeing some kind of return to financials as a space and among the private banks I like the way DCB is placed. On a valuation perspective it looks good, I think one can buy it with a longer term target of Rs 65. From a valuation perspective I like Aurobindo Pharma. In the pharma space this would be among the cheaper stocks. There have been some corporate governance issues on Aurobindo in the past and which is why this stock is getting a kind of discounting. But with the kind of numbers that they have given and if they are able to maintain a good track record then it is a matter of time before market really gives it the valuation that it deserves. One can hold this stock with longer term targets but I have a buy with a target of Rs 315.