Mid-cap Picks with Anil Singhvi: Andhra Sugars, Nelco, Endurance Technologies top stocks to buy, says analyst Vikas Sethi

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 view. He picked stocks from sugar sector, defense sector and auto ancillary sector. Sethi revealed to Zee Business Managing Editor Anil Singhvi, reasons why he has picked them as stocks to buy.

In his chat with the Market Guru, Sethi said that his long term pick is Andhra Sugars. The company has strong fundamentals. Though it is seen as a sugar company, Andhra Sugars has a good exposure in chemicals and fertilisers segment, as well. It also has a presence in the pharmaceutical sector and manufactures Asprin tablets.

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The stock is available at a multiple of 3.5 only. The return on equity is 17.5 per cent. The debt equity ratio is 0.16. Company’s PAT has grown at a CAGR of 26.5 per cent over the last 5 years. The profit has grown from RS 64 cr in FY15 to 205 cr in FY20. The low valuations are primarily because it is an unidentified stock. The stock is currently trading around Rs 267. It should be bought at existing levels. The target price of this stock is Rs 350 over a 9-12 month period.

Sethi picked Nelco as his positional medium term stock – a stock from the cash market. The company is from defense sector and is a Tata Group company. The fundamentals of this company are strong. The return on equity is 21 per cent. Return on capital is 30 per cent. The company’s profits have grown at 29 per cent CAGR in the last 4 years. The stock is currently trading around Rs 218. He recommends a buy on the stock expecting the target price of Rs 250.    

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This analyst picked an auto ancillary company, Endurance Technologies with a short term view. The outlook for the company is good as the two-wheeler monthly numbers reported are encouraging. The stock is currently trading around Rs 920. Fundamentals of the company are strong with impressive return ratios. Debt to equity ratio is 0.18. This is a stock to buy at existing levels. He puts the target price at Rs 975.