-
Midcap Stocks: After giving phenomenal return of around 50 per cent in 2014-15 and double-digit return of nearly 14 per cent in 2013-14, the BSE Midcap index closed down 1.2 per cent for the year financial year ended March 2016. This comes with the backdrop of negative return of 10.3 per cent for Sensex in FY16 against a growth of 24.6 per cent and 18.7 per cent during 2014-15 and 2013-14 respectively. This shows that there has been considerable outperformance of midcaps over their larger peers. Of late, the BSE Midcap index surged 4 per cent in April 2016 against 4.54 per cent gain by Sensex in the same month. Take a look at the Midcap stocks to bet upon (Image Source: Reuters)
-
Elgi Equipments | Recommended By: Zerodha | Why Buy: Elgi Equipments is one of the largest air compressor manufacturers in the country. With the off take in industrial projects the demand for air compressors and allied products are likely to improve. Besides the company is cleaning up their international operations and Zerodha expects this to translate to healthier numbers. (Image Source: Website screen-shot)
-
Coffee Day | Recommended By: Zerodha | Why Buy: Clearly, Café Coffee Day is the largest coffee chain in the country and has a very strong brand recognition. Their core business is expected to do well. The stock price has declined nearly 30 per cent from its listing price, which is a great entry price from the valuation perspective. The brokerage house expects the stock price to move back to its listing price over the next 12 months, translating to a gain of nearly 40 per cent. (Image Source: Website screen-shot)
-
Dewan Housing Finance (DHFL) | Recommended By: Asit C Mehta Interrmediates | Why Buy: DHFL is the third largest housing finance company with a loan AUM of Rs 65,960 crore as of Q3FY16. It has gained a niche position for itself in providing low-ticket affordable housing loans (12.16 lakhs) to low-to-moderate income (LMI) households through its strong pan-India distribution footprint (362 branches) spread across tier II/III cities and outside the municipal limits of the metropolitan urban regions. DHFL has grown its business at CAGR of 45.4 per cent and 42.9 per cent for past 5 and 10 years, respectively. Asit C Mehta Interrmediates believes, the long-term outlook for DHFL to remain favourable, supported by government’s thrust on “Housing for All by 2022” and huge potential demand from LMI and EWS sections. One can ‘Buy’ DHFL shares with a target price of Rs 299. (Image Source: Website screen-shot)
-
MAGMA Fincorp | Recommended By: Asit C Mehta Interrmediates | Why Buy: Magma is engaged in providing diverse set of financing solutions to rural and semi-urban areas through its extensive pan-India branch network of 223 branches. Bottom-up analysis of Magma Fincorp suggests that they have been witnessing cyclical downturn in asset financing business and rising stress in rural economy due to poor rainfall from past two consecutive years and erratic weather headwinds. Going forward, the probability of above average monsoon is high coupled with increased focus on rural spending will lead to more utilisation of assets under finance. Thus, the visibility of rural economy turning around is quite evident. Asit C Mehta Interrmediates expects higher single digit loan AUM growth for Magma to Rs 21,578 crore by FY18E. The brokerage house believes Magma to be a re-rating candidate and recommend ‘Buy’ with target price of Rs 103. (Image Source: Website screen-shot)
-
PTC India Financial Services (PFS) | Recommended By: Asit C Mehta Interrmediates | Why Buy: PFS has placed itself as a niche player in the renewable energy space over the past few years. Government focus on renewable energy would boost power generation and distribution activity in the coming days. Robust growth in NII and loan book and reorganisation of poor asset in Q3 has given the room for further improvement in NIM ahead. Asit C Mehta Interrmediates has assigned a multiple of 1.5x on FY18E book value of Rs 40 to arrive at a revised price target of Rs 60. (Image Source: Website screen-shot)
-
Bharat Electronics | Recommended By: Geojit BNP Paribas Financial Services | Why Buy: Bharat Electronics is a Navaratna Enterprise having 37 per cent market share in India Defence Electronics. The current order book is robust at Rs 32,333 cr, 551 per cent up from last year. The CAGR of the company is expected to grow at 15 per cent over FY16E-FY20E. Geojit BNP Paribas has ‘Buy’ rating on Bharat Electronics shares with a target price of Rs 1,289. (Image Source: Website screen-shot)
-
Prestige Estate | Recommended By: SBICAP Securities | Why Buy: Prestige Estate is a Bangalore-based leading real estate company with presence in residential, commercial, hospitality, retail and resale and rentals segment. They have completed more than 192 projects covering over 64.12 million sqft and currently have 65 ongoing projects covering 67 million sqft. Moreover, 34 upcoming projects aggregating to 41.38 million sqft are set to be set into motion. The company has extended its presence to major cities across South India including Chennai, Hyderabad, Kochi, Mysore, Mangalore and Goa. The brokerage house believes, the company is better placed in comparison to other real estate players due to southern market’s relative stability, diversified presence, reasonable balance sheet, strong demand absorption and affordable housing segment thrust. (Image Source: Website screen-shot)
-
Mahindra Lifespace Developers | Recommended By: Angel Broking | Why Buy: The company has demonstrated speedier execution and sales across its projects vis-a-vis its peers. With around 7.5mn sqft of sales pipeline, there’s strong revenue visibility for FY2016-18E. The company would be minimally impacted by the Real Estate Bill, given its strong parentage and ethically implemented processes. Angel Broking maintains ‘Buy’ rating on Mahindra Lifespace Developers shares with a price target of Rs 554. (Image Source: Website screen-shot)
-
Jamna Auto Industries | Recommended By: Edelweiss Broking | Why Buy: After a 2-year downturn, the MHCV industry in India is registering a recovery. Jamna Auto (JAI) is the largest player in the domestic leaf spring industry with 64 per cent market share whilst several other small companies contribute to the remaining 36 per cent share. JAI is expected to be a significant beneficiary of the CV cycle recovery in India. The strategic location of its plants has helped it to manage cost efficiently by reducing freight expenses. Additionally, the company has forayed into the air suspension and lift axle segment via a technology tie-up with Ridewell, USA. Implementation of GST (Goods and Services Tax), will open up a significant aftermarket opportunity for organised suspension leaf spring manufacturers such as JAI. (Image Source: Website screen-shot)
-
Indian Terrain Fashions | Recommended By: Edelweiss Broking | Why Buy: Indian Terrain’s positioning as a men’s smart casualwear brand along with its contemporary designs and superior product quality have lent a competitive edge, reflected by a 24 per cent CAGR over FY11-15 from Rs 121 cr to Rs 290 cr. A vibrant pan-India distribution network along with focus on expanding in uncluttered Tier 2 and 3 cities has undeniably reinforced its long-term growth prospects. The brokerage house expects revenues to grow at 15 per cent CAGR over FY16-18E. A light asset model due to outsourced manufacturing has lead to high RoCE of over 20 per cent. (Image Source: Website screen-shot)
Sridhar Vembu’s Zoho Arattai drops out of the top 100 apps list while WhatsApp, other rivals soar
