Buy KPIT Tech, NIIT Tech; sell LIC Housing: D Cunha

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26 Aug, 2025 12:21

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In CNBC-TV18's popular show Bull's Eye, Lancelot D Cunha of Sharyans Wealth Management shares his trading strategies for the day.

One may buy KPIT Technologies. It should see a goods revenue growth this quarter on the back of four large deals that they have got last quarter which was about USD 60 million. I expect to see margin improvement also in the company given that some hedges are expiring as well as the utilisation should go up from 73 percent to about 78 percent. I believe that the stock is fairly under valued in terms of trading at about 10 times its FY15 earnings.

One may buy NIIT Technologies with a target price of Rs 383.90. During this quarter the results are expected to be good. I expect the stock should be rerated once the results are out given that they have got a few large deals last quarter which should show up in the results this year as well as there would be an improvement in margins because significant amount of hardware business is now getting reduced from the future contracts.

One may buy Sterling Holiday Resorts (India) with a target price of Rs 85.50. The stock is a turnaround case and has been improving. It should be in the last phase of its restructuring. I expect that with the rupee depreciation making foreign travel much more expensive, we could see a lot of business been driven to the stock and which should improve its profitability.

One may sell LIC Housing Finance with a target price of Rs 197.10. The stock has seen considerable selling over the past few trading sessions and has corrected from Rs 225 levels down to its present level. On the back of fears that the financial services industry is seeing a lot of stress on the NPA fronts as well as they are not able to increase the margins.