In a chat with Zee Business Managing Editor Anil Singhvi today, market expert Ashish Kukreja recommended his top three mid-cap stock picks for investors to buy, which he said have great potential to earn bumper returns. These stocks were recommended with long-term, positional medium-term, and short-term views. Know why this analyst thinks these stocks hold promise!
Long Term Pick Rajratan Global Wire
The analyst says, the stock has moved from Rs 350 per share level to Rs 1000 per share levels since September 2020. The company has free cash flows with promoters increasing their stakes, Kukreja said.
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Rajratan Global Wire is in the business of manufacturing beard wire in tyres. and has been adding capacities, he said adding that it has a 50 per cent market share in India. Its an anti-bearer business, wherein not many new entrants we get to see in this business. He further called this business a big margin business.
With a market share of around 20-30 per cent, Rajratan Global has specific dominance in the Southeast Asian countries, it has a huge capacity in Thailand, says the market expert. The stock could double within a year, with an increased capacity.
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Positional Mid-Term Pick Astec Life
Terming this stock as ‘coffee can portfolio stock’, the analyst points out that the promoters of Astec Life are increasing their stake, its a company with high margin business. Astec Life is an agro chemical-based company, which has huge demand in the domestic market, mentions Kukreja.
The analyst says, disruption in China has helped this company gain, moreover, it is also doing backward integration, which means reducing the dependency from a neighbouring country in terms of supplies. The company is with zero debt, high-quality management, and world-class plants, makes it a “no brainer” to invest, this analyst suggested. He puts a target of Rs 1500 apiece with a 3-6-months view.
Short Term Pick Polyplex Corp
Polyplex is one of the top five companies globally in this sector, says Kukreja. He adds, its functional in 83 countries and the valuation of stock is good in the high growth segment and, strong balance sheet. There is a near-term trigger to this stock that the promoters are planning to exit through Rs 1500 crore stake sale, amid this news it will show an immediate growth at Rs 1400-1500 apiece.