As we all know the Stock market is all about wealth creation through Value picking stocks. Many people who invest in Stock Market have a different perspective towards investing, some have a long-term view while some have a short-term view. Multiple theories work in Equity Investing. It's not about being right or wrong but being judgemental about choosing fundamental good stocks.
Though its always better to invest in blue-chip stocks, but an ideal Portfolio must have some component of Mid & Small-cap stocks too to keep a balancing act in one's portfolio.
It helps in evaluating a portfolio at regular intervals provided selection & study is unbiased & categorised.
So stock selection should be based on investors' appetite to digest i.e. what is his goal, how long he wants to keep the said stock in his portfolio, regular income or regular appreciation from that stock etc. Here we are recommending 4 Stocks to buy for the near term in Midcap & Small cap category with respect to valuations, trend & fundamentals.
Sterling & Wilson Solar
It's a small-cap stock with a Market cap of Rs. 4604 crores. The Company is a global pure-play, end-to-end solar engineering, procurement and construction (EPC) solutions provider.
The stock price has gone from 185 to 345 levels during a year. It's a prominent company in this sector and fundamentally the stocks look good as promoters have recently repaid Rs. 67 crores worth of ICD's in the last quarter and they assured pending ICDs to be repaid back by Sept 2021. The further company expects to receive Rs. 500 cr as EPC Dues.
We expect the stock price near-term target around Rs. 360 to up Rs. 410 and have a buy on this small cap stock. The current share price of this stock is Rs 271.
It's a small-cap stock with a market cap of Rs. 1992 crores. It is the fastest-growing Dyes, Intermediates & Chemicals company. In the last six months, the stock has gone up from 525 levels to 650 levels. It is a fundamentally good company and one can buy at current levels of Rs. 590 with a target price of Rs. 750 in the near term. The shares are currently trading at Rs 588.
It's a small-cap stock with a market cap of Rs. 1995 crores. This Company is a pioneer in electric bus manufacturing and insulators in India. The company is using new-age technology and has been a part of building the Power Transmission & distribution in India.
The stock has performed very well & gone up from 55 levels to 245 level in past one year. We recommend this stock to buy with a target price of 320-350 in the near term.
It's a Mid-Cap stock with Market cap of Rs. 9612 crores. Poly Medicure Limited is one of the leading manufacturers of high-quality medical devices across the world. The stock price has given a super performance from Rs 293 to 1165 levels in one year period i.e upside 300% upside. We expect the price to go up further to 1400-1450 in the near term and can maintain a buy at current levels of Rs. 1000 on this stock.
It's a Mid-Cap stock with a Market cap of Rs. 6346 crores. This company is manufacturer of Speciality Ingredients and solvents catering to various sectors like pharmaceuticals, agrochemicals, food packaging, pigments, and coatings. The stock has shown a brilliant performance from 145 to 250 levels in one year's time. The stock is in full momentum and fundamentally we expect the price to reach 320-340 levels.
The author by Kapil Goenka is Director at C.M. Goenka Stock Brokers.
All of the above stocks are recommended by Kapil Goenka, Director at C.M. Goenka Stock Brokers. Investing in stocks is risky and investors should do their own research. The author, the brokerage firm or Greynium Information Technologies Pvt Ltd is not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly.