Mid-cap Picks with Anil Singhvi: MCX, Apar Industries and Orient Cement are top stocks to buy, says analyst Vikas Sethi

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Mid-cap Picks with Anil Singhvi: Market expert Vikas Sethi in today’s special mid-cap picks show has recommended three stocks with a long term, positional medium term and short term views. Sethi revealed to Zee Business Managing Editor Anil Singhvi reasons why he has picked them as stocks to buy.


Long Term Pick: Multi Commodity Exchange (MCX)

Multi Commodity Exchange is trading near 1575 levels. Vikas Sethi said he had been bullish on exchanges for past few days. He said IEX was recommended at Rs 180 and the stock price touched the levels of Rs 320. MCX business model holds monopoly in commodity business and 96% of the total business volumes happen in this exchange only. This business is really unique and strong the fundamentals of the company are extremely strong. The operating profit margins are nearly 70%, Return on Equity is near 17% and the profit CAGR for past 3 years is 23%. MCX has launched many new products. The results of MCX will be better in coming quarters and years; the stock will outperform going forward. NSE IPO will lead to rerating of all other exchanges stocks namely, MCX, BSE, IEX going forward. The target price on the stock is Rs 1800 in next 9 to 12 months.

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Positional Term Pick: Apar Industries

Apar Industries is into the business of speciality oils, conductors, cables, polymers, lubricants and speciality automotives. The fundamentals of the company are extremely strong. Profit of Apar Industries improved to Rs 82 cr from 36 cr (yoy). The stock is trading at a multiple of 12-13 P/E. The target on the stock is Rs 480 and stop loss is Rs 430.

Short Term Pick: Orient Cement

Sethi said he had recommended this stock at Rs 60 in the month of November and the stock has moved up 50% to Rs 90 now. The stock can see levels of Rs 100 in short term and stop loss is Rs 85 – Rs 86. Cement sector is seeing extremely strong momentum and has been in focus after Budget. Orient Cement was demerged in the year 2012 and since then, it has emerged as one of the fastest growing and leading cement manufacturers in India. Q3 FY21 result has improved to 53 cr profits from 5 cr loss (yoy). Orient Cement has a total capacity of 8 MTPA and the valuation f the stock indicates that it is cheapest in the cement sector.  


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