Buy S Kumars Nationwide, SKS Micro, Dish TV: Diwan

Written By Unknown on Senin, 25 Maret 2013 | 16.02

In CNBC-TV18's popular show Bull's Eye, Prakash Diwan of Prakash Diwan's Wealth Circle shares trading strategy of the day.

S Kumars Nationwide is the first stock that I have picked on the long side. The stock has seen a lot of drubbing but given the positive move that the management is now looking at carrying out in terms of hiving off some of its businesses to shore up the balance sheet, augurs well for this company. So S Kumars Nationwide is a long with a target price of Rs 9.15 and a stop loss of Rs 8.45.

SKS Microfinance is also on the long side. The stock has been in the news last week. We also saw some kind of buying come in on the last session of Friday but I expect this to continue, it is a follow-up buying given the fact that the company is looking at raising some money through some securitisation of portfolios, which is again a very healthy step for this company which is leading the microfinance business. Therefore, SKS is a long with a target price of Rs 129.90 and a stop loss of Rs 121.90.

Dish TV is a stock that has been in news. I believe this is a stock that got ignored by people who believed in digitisation theory but somewhere the stock has started to play catch up. We have seen some kind of buying happen last week and I expect that to continue. Therefore, Dish TV with a target price of Rs 65.50 and a stop loss of Rs 61.50 is another pick.

Karnataka Bank is a long. The stock has come into deep value and as soon as we start seeing some sort of merger and acquisition (M&A) wave emerge in the banking sector, this is one of the first to get off the blocks. At these valuations, this is distinctly with decent safety of margin; it could have some sort of headroom which could leverage on. So, the target price is Rs 132 and a stop loss of Rs 125.



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