This bank stock may see 25 per cent upside: Market Expert Santosh Singh

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At ‘Hello Money9’ market expert Santosh Singh has said that private sector lender, South Indian Bank,  is currently available at a good discount. The stock has potential to rally 25 per cent from current levels. But he has also advised investors to become cautious on the stock if the share price slums below Rs 23 as negative momentum could crop up. On Friday, the South Indian Bank closed on the BSE at Rs 24 per share.

‘Wait for 15% correction in IDFC First Bank’

On another private sector bank, IDFC First Bank, Singh has advised investors to wait for time being. Singh said, “The stock has shown handsome rally in the past. According to investors should look to enter the stock only if a correction of around 15 per cent comes in it from current levels.” On Friday, IDFC First Bank closed at Rs 95.20 per share on the BSE.

Trident for target price of Rs 52

On textile stocks, Singh sees high risk to reward ratio on Trident India. Singh said, “In last few years, textile industry faced lot of headwinds owing to recession in the US and Europe. But good days are ahead for Trident. This year might bring good news for Trident. The company draws a major chunk of revenues from exports.” Singh has given it a target price of Rs 52. But he has also advised traders to keep stop loss at Rs 39.

Rain Industries

Singh said, “Although, Rain Industries is a riskier bet because of high debt. However, it has good cash flow. Investors can buy the scrip for target price of Rs 205 and keeping stop loss of Rs 172.” On Friday, Rain Industries closed at Rs 180 per share. Singh said further 13 per cent upside on the counter.

‘Need correction in L&T’

Engineering conglomerate, Larsen & Toubro (L&T) made headlines on Friday after it struck multi-billion-dollar deal with world’s largest oil and gas company, Saudi Aramco, for one of its projects. Because of which, L&T was up 2 per cent on Friday. Brokerages have revised price target on the construction stock after it clocked a . CLSA has given price target of Rs 3,240. While, another brokerage firm CITI has given it target price of Rs 3,175. While, Morgan Stanley has given it a buy rating with a target price of Rs 3,200.

Singh has advised investors not to invest in L&T at current levels. He has advised investors to wait for 10 to 15 per cent correction before making any fresh purchase.

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