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BULLISH STOCKS:
Cairn India Ltd:BUY:TARGET :300+(SHORTTERM)
· The company is expected to see an increase in its productionlevels. Cairn India is well positioned to face crude prices at current level.
· Buy the stock with atarget of 350-375 levels in 1 year.
Bhushan Steel Ltd:BUY-TARGET-430+
· The company reported a topline growth of 63 per cent (YoY) and14 per cent (QoQ).
· The downside is limited and delivery based participation islikely to come in.
LIC HOUSING FINS.: BUY -240+
· The stock is trading at a PE of less than 10 making itattractively valued. On a face value of Rs. 2, the company has an EPS (earningsper share) of Rs. 21.
· It has support of 180 and resistance at 240.
Larsen & Toubro Ltd: BUY TARGET:1850+
· The firm has surpassed market expectations with its results.
· Restructuring anddemerger in the company will add value to the stock.
· This is the best bet in the capital goods space.
TATA STEEL: BUY:TARGET: 550+
· The firm had a top line of Rs. 120,000 crore last year andposted profit on a consolidated basis of Rs. 9,000 crore translating into anEPS of 99 per share.
· The company has decided to divest 26 per cent stake inRiversdale plant and is expected to receive Rs. 4800 crore in cash.
TATA CONSULTANCY: BUY: TARGET: 1200
· This year, software major expected to reach Rs. 45,000 crorei n topline.
· The company is expected to post Rs. 11,500 crore in profit aftertax (PAT) for full year.
Shriram Transport Finance Company Ltd:Target: 750+
· High interest rates have led to underperformance of the stock.
· It is the best stock inthe NBFC space.
Reliance Capital Ltd:BUY: TARGET:500+
· Sentiments across ADAG stocks are down.
· The stock is trading at attractive valuations and the company’sinsurance biz is doing decently.
· Candidate for banking licence.
Our bearish stocks :
SKS Microfinance Ltd: SELL
· The business model is still sound but the ambiguity within themanagement is hurting the stock.
· The company has reported huge losses in the last quarter.
· The company has a customer base of 7.5 million which makes it anattractive takeover target.
Dhanalakshmi Bank Ltd: SELL ON RALLYGOOD STOCK FOR BEAR IF MOVE UPWARDS:
· The stock is in bear group and short term averages are belowintermediate averages suggesting lack of investor confidence.
· Any rally will be used as anexit and rallies will be capped. Sell on rally.
Gitanjali Gems Ltd: SELL ON RISE:BOOKPROFITAT 375+
· There are no concerns on this stock as long as it trades above 300levels.
Vijaya Bank :SELL
· Rising interest rates have affected the net interest margins (NIM).Fee income is a minor component in total income.
