Stock Recommendations

STOCK IN FOCUS

MBL Infrastructures (MBL) defied Friday’s sell-off and gained over 2% mainly on the back of improved business outlook for the company. MBL is geared up for its next phase of growth owing to its matured and selective bidding strategy, sound operational efficiency with rich execution skills, nearing completion of developmental assets and relatively low leverage.

It currently has an order book of Rs36bn (1.9x TTM revenue), which provides decent revenue visibility.

Further, it is likely to announce a number of orders in ensuing months especially from roads, railways and water segments. 

Moreover, it is fairly backward integrated by owning 12 RMC units, quarrying facilities and equipments, which helps it to reign in operating costs and have some command over profitability. 

Improved visibility in its BOT assets with over ~20% expected EIRR is likely to provide impetus to the company.

We recommend a Buy on the stock with a revised Target Price of Rs781.

INTRADAY PICKS

APOLLO HOSPITAL (LTP: 1382) BUY For today's trade, long position can be initiated only in Rs.1360-1350 range for target of Rs.1400 with a strict stop loss of Rs.1340.

JUBLFOOD (LTP: 1589) BUY For today's trade, long position can be initiated only in Rs.1560-1550 range for target of Rs.1600 with a strict stop loss of Rs.1540.

Positional Stock Recommendations

The stock of Grasim continues to trade in rising channel with strong support around level of Rs3,650 and the resistance at Rs4,100. Combined with this, 100 day simple moving average around the level of Rs3,496 provides very good support even in case of sharp sell-offs.

Stochastic has already given positive cross over and still indicates stock being oversold. MACD and RSI although is a bit concern at this point, however in view of the favorable risk reward ratio, we recommend traders to accumulate the stock on dip.

Thus, for today's trade, long position can be initiated only in Rs.3,630-3,570 range for target of Rs.4,100 with a stop loss of Rs.3,495