 | « Back to article | Print this article |
10 mid-caps that will make you laugh all the way to the bank
As macroeconomic fundamentals improve, equity markets are going to witness better times. Concerns over current account deficit (CAD), inflation, and economic growth have started easing, according to a report from Angel Broking.
CAD will be lower as commodity prices have undergone correction, inflation has started moderating, and government reforms are likely to boost the economy.
"We believe that the Sensex is likely to make new highs in the coming months on the back of this improving domestic outlook and strong global liquidity flows," notes the Angel Broking report.
Until now, defensive stocks primarily drove the market rally but if Sensex starts making new highs mid-cap companies would come back in favour.
Here's a list of 10 companies can give investors best returns in the next rally, according to Angel Broking.
Click NEXT to see the recommended stocks...
10 mid-caps that will make you laugh all the way to the bank
Bajaj Electricals
The company is expected to capitalise on the growing disposable income in rural areas.
Industry: Household Appliances
Current market price: Rs 163.50
Target price: Rs 237
Click NEXT to read more...
10 mid-caps that will make you laugh all the way to the bank
DB Corp
One of India's leading publishing houses, the company is expected to see an increase in revenues as advertising spends rise.
Industry: Publishing
Current market price: Rs 263
Target price: Rs 290
Click NEXT to read more...
10 mid-caps that will make you laugh all the way to the bank
Finolex Cables
With some strategic business changes (reducing copper rods sale and end of derivative contracts), the company's bottomline is expected to improve significantly.
Industry: Electrical equipment
Current market price: Rs 53.85
Target price: Rs 68
Click NEXT to read more...
10 mid-caps that will make you laugh all the way to the bank
Goodyear India
The company has tie-up with high-end brands such as Audi, BMW, Land Rover, Mitsubishi and Porsche. This gave the company a 65.1 per cent return on invested capital (ROIC), more than double of other listed peers.
The pick-up in farm equipment business, too, is expected to benefit the company.
Industry: Auto tyres and rubber products
Current market price: Rs 265.65
Target price: Rs 345
Click NEXT to read more...
10 mid-caps that will make you laugh all the way to the bank
Indoco Remedies
The company's focus on domestic formulations, scaling up exports, and manufacturing partnership with major pharma companies is expected to help the company grow better.
Industry: Pharmaceuticals
Current market price: Rs 61.90
Target price: Rs 89
Click NEXT to read more...
10 mid-caps that will make you laugh all the way to the bank
IL&FS Transportation Networks
The company has the portfolio of build-operate-transfer projects.Experienced management should be able to leverage on the growing opportunities in the BOT space.
Industry: Roads and highways
Current market price: Rs 176.40
Target price: Rs 230
Click NEXT to read more...
10 mid-caps that will make you laugh all the way to the bank
Mahindra Lifespaces
The company has smartly diversified its projects in different geographies and would benefit as they launch these. Also, it has a strong balancesheet and low high debts on its books.
Industry: Real estate
Current market price: Rs 411.40
Target price: Rs 476
Click NEXT to read more...
10 mid-caps that will make you laugh all the way to the bank
Relaxo Footwear
Store expansion and brand revamp is expected to drive business.
Industry: Foortwear
Current market price: Rs 648.70
Target price: Rs 791
Click NEXT to read more...
10 mid-caps that will make you laugh all the way to the bank
Tech Mahindra
Once court allows it to merge with Mahindra Satyam, the new entity will be the fifth largest IT company in the country. The company is expected to benefit from the scale of operations post merger.
Industry: IT consulting and software
Current market price: Rs 983.85
Target price: Rs 1,170
Click NEXT to read more...
10 mid-caps that will make you laugh all the way to the bank
United Phosphorus
In the next 2 - 3 years $7 billion worth of agro products are going off patent, which is a growth opportunity for generic players such as United Phosphorous.
Industry: Agrochemicals
Current market price: Rs 154.80
Target price: Rs 232