Buy Shakti Pumps, Excel Crop, Jindal Saw: Agarwal

Written By Unknown on Kamis, 11 Oktober 2012 | 14.02

In CNBC-TV18's popular show Bull's Eye, Rajesh Agarwal, Eastern Financiers shares trading strategy of the day.

Buy Shakti Pumps with a stop loss of Rs 58 and a target of Rs 65. This is the largest manufacturer of submersible pumps and motors with a wide range of innovative pumping solutions. The current top-line of the company is around Rs 200 crore which the management has indicated that it will almost be double in the next three years. Trading at a PE of less than 5 of FY14 earnings the stock seems to be quite undervalued, hence a buy call.

Buy Excel Crop with a stop loss of Rs 158 and a target of Rs 174. This company manufactures finest quality of internationally accepted agro chemicals. June quarter sales were up by 30 percent and bottom-line jumped by around 75 percent. With the kind of food inflation and government initiatives we are witnessing we believe that companies related with agriculture are going to benefit, Excel Corp being one of them, hence a buy call.

Buy Jindal Saw with a stop loss of Rs 108 and a target of Rs 114. The company is one of the largest producer of saw pipes with operations not only in India, but they have international operations also in countries like UAE and USA. The company's expansion plans in India and abroad are progressing well and they are under various stages of implementation and once completed they will add enough to the bottom-line.

Sell DLF with a stop loss of Rs 221 and a target of Rs 207. We as a broking house has always maintained that realty as a sector had corporate governance issues. Not only corporate governance, but building up of inventory, higher interest costs were taking toll on the company and with the kind of recent controversy surrounding DLF we feel that the stock has more downside to see, hence a sell call.



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