Three leading brokerages have recommended that the time is ripe now to buy midcap stocks.
The Brokerages have advised that these mid-cap stocks are of good companies and have fundamentally strong business models.
The 20 stocks can given a return of up to 77%.
The recommendations have been made by leading brokerages, ICICI Direct, Anand Rathi and Prabhudas Liladhar.
12 Stocks With Good Fundamentals To Buy For 2019
Sharekhan has issued a research report in which it has recommended investment in 12 stocks which have strong fundamentals and a good track record of profitability and dividends. All the 12 stocks are well known names and have given multibagger returns to investors in the past
After the cut in the corporate tax rate, the brokerages have raised the Nifty 2020 target to 12,300-13,500.
They are expecting double-digit growth on hopes of strong earnings going forward.
The stellar upside after a cut in corporate tax rate was not restricted only to benchmark indices. It was also seen in broader markets. In fact, investors became wealthier by over Rs 10 lakh crore within just the two sessions.
The BSE Sensex and Nifty50 surged 8 percent each, while BSE Midcap index gained 9.5 percent and Smallcap index rose nearly 7 percent.
The rally’s strength was quite strong if we compare these indices’ past performance. The BSE Midcap and Smallcap indices were down more than 13 percent year-to-date till September 19 and same fell 23 percent and 32 percent, respectively, during the February 1, 2018 to September 19, 2019 period.
Brokerages are advising buying midcaps/smallcaps now to get ample returns in the coming quarters as they are betting on earnings and economic growth after this Rs 1.45 lakh crore fiscal package to corporates which would be enough with medium perspective, though they expect more measures in coming days.
Himanshu Gupta, Head of Research, Globe Capital, advised that investors should start buying midcap stocks instead of waiting for more time. The fact that these pockets even started to show resilience to go down further over the past few weeks even before this tax announcements were made suggests that money has already started chasing them. And given the kind of attractive valuations these stocks are trading, it makes sense to start investing into high quality stocks with strong earnings track record and proven managements, he said.
Arun Kumar, Market Strategist at Reliance Securities, offered the same advice.
He pointed out that smart investors are buying small-cap and mid-cap stocks where value is relatively cheap with limited downside.
The 20 mid-cap stocks recommended by experts are the following:
|20 Mid-Cap Stocks With Good Fundamentals|
|Company||Target (Rs)||Return (%)|
|Stocks Recommendations by Antique Stock Broking|
|CCL Products India||350||50|
|Transport Corp of India||370||29|
|Stocks Recommendations by ICICI direct|
|Stocks Recommendations by Prabhudas Liladhar|
|Shriram Transport Finance||1,481||33|
|Kalpataru Power Transmission||624||26|