This midcap rallies 100% since January: May cement your returns even more says Goldman Sachs

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Published: September 1, 2017 10:07:25 AM

Dalmia Bharat has outperformed the benchmark in one year, three year and five year periods.

Goldman Sachs, Goldman Sachs bond trading, bond trading Goldman Sachs, Goldman Sachs revenueGoldman Sachs has a buy on Dalmia Bharat with a target of Rs 3,050 per share in the near term. (Image: Reuters)

This cement industry player has more than doubled since January; and is still undervalued says Goldman Sachs. Dalmia Bharat has posted returns of more than 100% in the year so far, outperforming the BSE Midcap index by more than 70%. The Nifty commodities index is up by 25% in the year. The stock was trading at Rs 2,722 on NSE this morning. Goldman Sachs told ET Now that it has a target of Rs 3,050 per share in the near term. According to Goldman Sachs, the medium term outlook for the cement industry looks positive.The multinational finance company believes that the demand will grow by 5% in the next fiscal.

Dalmia Bharat has outperformed the benchmark in one year, three year and five year periods. Goldman Sachs has a buy rating on Ultratech Cement too. Ultratech is up by 23% in the year so far, and has outperformed the BSE Sensex by a narrow margin. The stock has seen a correction in recent times, and is down by more than 4.5% in the last three months.The stock was trading flat at Rs 4,000 at NSE on Friday morning. Goldman Sachs has a target of Rs 4,650 for the stock.

KEI Industries, another centurion has returns of more than 106% in the year so far. Shares of KEI Industries touched 52-week high of Rs 262.50, rising 7 percent intraday Wednesday on the back strong numbers declared by the company in the quarter ended June 2017. The stock was trading up 3% at Rs 263 this morning.

Calcutta Electric Supply Corporation is in the news for trading at all time high levels. On Friday morning the stock was trading at Rs 1,018. At such times, it is not uncommon for investors to keep away from the stock, and exercise caution. However, market expert Ashwani Gujral says that the stock still has upside. The technical analyst says that the stock is buy at these levels. In conversation with CNBC TV18, this week, he said, “CESC is a buy with a stop loss of Rs 980 and target of Rs 1,040.”

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