Glenmark may test Rs 1186; look at UltraTech, Infosys: Bodke

Ajay Bodke of Prabhudas Lilladher told CNBC-TV18, "I think we are early in the earnings season but UltraTech Cement numbers that came in yesterday also particularly standout. I think as against an expectation of 4 percent volume growth, the company has posted around 7 percent volume growth. The company’s commentary has been that the improvement in low cost housing as well as infrastructure works expected over the medium-term makes them positive.""The company had seen a very strong 23 percent EBITDA growth and the cost cutting also has been quite admirable. So, I think that is one stock in the largecap cement space that one should look at from the medium-term perspective," he added."Infosys numbers also obviously were very strong and that remains as one of the top recommendations with a medium term perspective for us. I think the current fall has been particularly savaged also in case of some the midcap pharmaceutical names, results are yet to come but I think companies like Glenmark Pharmaceuticals and Jubilant Life Sciences, fundamentally I think the companies are doing very well.""In case of Glenmark Pharma in particular, the slew of ANDA approvals that they are getting should continue in the next financial year also and we are expecting a strong growth in revenues for the current year in next financial year. So, we have a medium term price target of Rs 1,186 for Glenmark Pharma and in case of Jubilant Life Sciences the turnaround that one saw in the first quarter which strengthened in the second quarter should continue in the third quarter also. There we have a target price of around Rs 570 with a medium-term perspective.""Jubilant Life has taken a very savage beating in the last week or 10 days when fundamentally the company is doing very well. So, these are the pockets in pharmaceuticals where we are positive on." "Cummins India in the midcap capital goods space also sort of took some walloping couple of days back. Again, the domestic outlook continues to be strong out there, the exports also are doing quite well, the company has a very strong edge in terms of the markets that is in, strong RoEs, RoCEs, so that again offers a good opportunity for entry," he added. "In the midcap IT space, Hexaware Technologies has taken some beating out there. Not fundamentally warranted, strong growth in revenue of around 17 percent CAGR this year and next financial year expected and a better earnings growth of around 21 percent in the current financial year expected by Hexaware. The stock is trading at around just 11 times FY18 earnings. So, that is one space one should look at in the medium-term.""The logistic space which was sort of buzzing quite well and let us not forget that we are heading into the Budget season, sort of a month from now, and again the talk about whether there is a consensus on the goods and services tax (GST) will come to the fore at some point and logistics companies will start seeing some action. So, Allcargo Logistics is something that one should look at in the medium-term," he said.