Buy JSW Energy HPCL, Ashok Leyland: Sharmila Joshi

Written By Unknown on Senin, 18 Februari 2013 | 14.02

In CNBC-TV18's popular show Bull's Eye, Sharmila Joshi, Peerless Securities shares trading strategy of the day.

I start by buying JSW Energy . This I buy with a target of Rs 61 and a stop loss at Rs 59. We have seen a very good set of numbers from JSW Energy where we have seen merchant tariffs add to the profitability. Also, I think going ahead, raw material costs are expected to come down. So I think both things put together call for an earnings upgrade on JSW Energy. This is a beaten down space in the market. Within that space, I think this is a stock that has delivered on the numbers as well as the plant-load factor (PLF) etc continues to look good going ahead. So, I would have a longer-term call on the stock. But for the day I buy it with a target of Rs 61.

The next stock on my list is Hindustan Petroleum Corporation Ltd (HPCL). This I buy with a target of Rs 320 and a stop loss of Rs 307. We have seen over the weekend a hike in both the petrol as well as diesel prices and I think that this shows a move towards decontrol and that augurs very well for the entire oil marketing space. So HPCL is a stock that I buy within that space with a target of Rs 320.

Next stock on my list is Jet Airways . This I buy with a target of Rs 630 and a stop loss at Rs 612. Their deal with Etihad could be announced very soon, very imminent and most of the things that were required to be done prior to the deal getting announced, I think those whether it is board approval or whether it is valuations, I think that is kind of all done, that is the sense you are getting. I think that when you talk of Etihad taking 24 percent stake in Jet Airways and the kind of valuations the deal is being done at, it will help Jet Airways restructure their debt in a very big way.

The last stock on my list is Ashok Leyland . This I buy with a target of Rs 23.30 and a stop loss at Rs 22.50. One of the most beaten down stocks within that entire basket and I think that if you had to buy a stock with a slightly longer-term perspective and expect absolute returns, Ashok Leyland would be a good stock. In terms of numbers, a lot of the other companies have declared and they have given better numbers but I think Ashok Leyland at this price looks good. So, for the day, I buy it with a target of Rs 23.30.



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