We have constructed a 16-stock mid-cap portfolio to capitalise on the current weakness, which we feel presents a good opportunity for long term investors.
This year’s correction in the erstwhile market darling, mid-caps, has been severe. While the headline Nifty Index has risen by 2%, the mid-cap index has fallen by close to 11.5%. Within the mid-cap universe, the correction in several pockets have been significant. Earnings disappointments only partially explain the decline; sentiment, too, has been subdued. After a careful analysis of the financial numbers and the earnings outlook, we have constructed a 16-stock mid-cap portfolio (with 30% cash to take care of future volatility) to capitalise on the current weakness, which we feel presents a good opportunity for long-term investors.
is an OEM (original equipment manufacturer) and ODM (original design manufacturer) for room air conditioners (RACs) and components, an underpenetrated category in the consumer space. The capability to cater to marquee Indian RAC (room air conditioner) companies, with a market leadership position and 80 percent of revenues coming from margin-accretive ODM processes, should benefit the company.
Leading amine manufacturer, Balaji Amines, which continues to achieve double-digit volume growth, looks interesting. In the medium term, the company benefits from multiple capacity expansion initiatives and higher capacity utilisation for products wherein imports face anti-dumping duty. We like the management’s strategy of focusing on high-margin products where the domestic market is dependent on imports.
looks attractive after a 34-percent correction from its 52-week high, given that the company’s growth story remains intact. We see earnings tailwinds from a healthy product mix with more than 50 percent sales from specialty molecules, a strong lineup of new products, low penetration of herbicides and fungicides in India, favourable rural-focused policies and a good monsoon. However, in the short-term, pressure on the raw material front might continue.
If you want more information regardingtheMarket News & many other tips like Intraday Tips , MCX Normal Calls , Indore Advisory Company , Bullion Market Tips , Share Market Services , NSE & BSE Market Tips , Free MCX Market Tips , MCX Premium Tips , Bullion Energy Tips , commodity market tip.
Call On TOLL FREE Number: 9009010900
Whatsapp User Join Our Group: 930042111
No comments:
Post a Comment