Buy Zee Entertainment, Delta Corp, Apollo Tyres: Jajoo

In CNBC-TV18's popular show Bull's Eye, Vishal Jajoo of Nirmal Bang Securities shares his trading strategies for the day.

One may buy Zee Entertainment Enterprises. The company reported its numbers last week, the EBITDA margins came at more than 28 percent as compared to an expectation of 26 percent plus. We expect this trend to sustain going forward. It has performed very well. Being the leader in the media industry this stock has seen the worst and the best of the industry and therefore it is rightly placed. Though we have much higher targets over the medium term but the target for the day stands at Rs 273. One may buy Delta Corp. In this coming year the company has slated to increase its capacity five fold. The process has already begun with the commencement of a new vessel at Goa and on the back of it we expect a sustained increase in revenues, which should lead to an exponential increase in its earnings on the back of a fixed cost business model. The only listed player in casino industry and therefore a buy call on it. One may buy Pidilite Industries. Last week we saw the results of Asian Paints and the way the company has managed to pass on the hike in raw material prices on the back of its strong brand equity, I think Pidilite is also a candidate which one can definitely put in the same category. Looking at the earnings which is slated to come this week, and looking at the way I think the company would be able to pass on the price hikes and therefore it would be having a good set of numbers and on the back of a strong brand equity. One may buy Apollo Tyres. The way national rubber prices have corrected, they have breached the Rs 160 level mark on the lower side and we do not expect any significant recovery in national rubber prices. They should definitely help number of tyre manufacturers including the leader Apollo Tyres.