Buy L&T, Dewan Housing, Mangalore Chemicals: D Cunha

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

One may buy Larsen and Toubro (L&T). L&T came out with very good results showing a very strong order book growth of about 27 percent. Most of the orders are from overseas markets. We have a 43 percent share of overseas orders in the order book which augers well for L&T going forward despite the Indian economy slowing down. The company is also very strong in terms of its focus on trying to liquidate some of its non-core assets to bring down its debt. One may buy Tata Global Beverage with a target price of Rs 168.70. The stock has been moving up on investment buying based on the fact that international tea prices have been softening and demand for tea continues to grow as well as robust coffee business. The joint venture with Starbucks is expected to do very well and possibly when Tata Global Beverages announces its results we could see a further move up. One may buy Dewan Housing Finance Corporation with a target price of Rs 151.60. The stock has been recently in the news for a large investor buying a significant quantity in the company which will generate interest from other investors. It is also the largest housing finance company in the low and middle-income segment. One may buy Mangalore Chemicals and Fertilisers with a target price of Rs 52.70. The stock has been in the news for a takeover bid and we could expect that a significant chunk could change hands. There has been some accumulation in the stock. May be an open offer may also get triggered and announced. So the market is expecting something of that sort. Based on that anticipation I expect the stock could see some interested buying which could take it to its target price of Rs 52.70.