Mid-cap Picks with Anil Singhvi: Market expert Vikas Sethi in today’s Special Mid-cap Picks show has recommended three stocks with long term, positional medium term and short term views. He picked stocks from the hotel sector, cement sector and sugar sector. Sethi revealed to Zee Business Managing Editor Anil Singhvi reasons why he has picked them as stocks to buy today.
Long Term Pick: Indian Hotels
This is a Tata Group company. They have over 200 hotels. They have hotels in 12 countries and at many locations. They have many iconic properties like Taj Mahal Hotel in Mumbai. The stock is offering good value at this stage as this sector is not in focus due to Covid issues.
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Positional Term Pick: NCL Industries
Vikas Sethi said that the cement sector will remain in focus and ACC numbers have clearly indicated that sector’s results will be good. The company derives over 80% of its revenues from the cement business operating mainly in south India with an annual installed capacity of 2.70 million tons. The rest of the sales come from segments like cement bonded particle board, ready mix concrete and hydro power. The company’s strong brand equity, premium positioning in north coastal AP and low-cost capacity expansion are key triggers for future growth. The company is poised to benefit from the upcoming demand revival in the south, increased thrust on low cost housing and infrastructure segments. The target on the stock is Rs 195, stop-loss is Rs 165
शॉर्ट टर्म, पोजीशनल और लॉन्ग टर्म में किन मिडकैप शेयरों में निवेश देगा दमदार मुनाफा?
— Zee Business (@ZeeBusiness) April 26, 2021
Short Term Pick: Andhra Sugar
Sethi said that the sugar sector has been in focus. Andhra Sugar, apart from its focus on sugar, has businesses in Chemical, Fertilisers and Pharma segments. International sugar prices have been going up sharply which will benefit this company going forward. Ethanol theme is also going to be positive for the Sugar sector. The company manufactures Aspirin tablets as well. Fundamentals of the stock are extremely strong and valuations are at 4-5 P/E. Profit margins are 17%-18% and the company gave a dividend of Rs 20 last year. The target on the stock is Rs 355 – Rs 360, stop-loss of Rs 335.