Buy Pratibha Ind, Federal Bank, Amara Raja: Dharmesh Kant

In CNBC-TV18's popular show Bull's Eye, Dharmesh Kant of Indianivesh Securities shares his trading strategies for the day.

One can buy Tamil Nadu Newsprint and Papers (TNPL) for a price target of Rs 172 with a stoploss of Rs 154. TNPL is a play on the paper industry and primarily it manufactures paper from bagasse, which is a sugarcane residual. Hence it is eco-friendly paper manufacturer in India. If you look at paper consumption in India, it is around 10 kilogram per annum per capita whereas the worldwide average is around 60 kilogram.

One can buy Pratibha Industries for a price target of Rs 73 with a stoploss of Rs 57. Pratibha Industries is a focus play on the water supply, sewage system, road construction and public utilities from the commercial segment. I think with government’s promise to deliver pure drinking water to all and given a concrete roof to all in India, we will have a good order flow coming into play.

One can buy Federal Bank for a price target of Rs 130 keeping a stoploss of Rs 120. Private sector banks still has edge over public sector banks and any price action or positive price action coming into play, private sector banks will attract more investors than public sector banks. Among private sector banks, Federal Bank looks quite promising. It is available at around 1.5 times price to adjusted book value one year forward.