Mid-Cap Picks with Anil Singhvi: Cera Sanitaryware, Cigniti Technologies and Delta Corp are Vikas Sethi's top picks

Stock market expert Vikas Sethi in his conversation with Zee Business Managing Editor Anil Singhvi on Monday picked Cera Sanitaryware, Cigniti Technologies Limited and Delta Corp as his long-term, positional and short-term recommendations, respectively. Importantly, today, stock market remained bullish and ended higher for the third consecutive session.  

Stocks To Buy: Cera Sanitaryware 

Picking Cera Sanitaryware as his long-term pick, Sethi said the company has strong fundamentals and has a good network across India. Recent cut in gas prices and the government’s focus on real estate will hugely benefit ceramic tiles making companies like Cera Sanitaryware, he added. Talking about fundamentals, Sethi said Cera Sanitaryware is a low-debt company, return on equity ratio is good, while return on capital employed is around 83%. He said the most encouraging development is FIIs holdings, which have increased from 7.8% in December 2019 to 15.5 % in June quarter, making it a very good long-term pick. He put a "buy" call on the stock at around Rs 2400 and gave a target of Rs 3,000 with a long-term view (9-12 months). 

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Stocks To Buy: Cigniti Technologies Ltd 

Sethi named Cigniti Technologies Ltd as his positional call. The put the target at Rs 475 and stop-loss at Rs 430. Sethi said Cigniti Technologies caters to the IT sector that deals in engineering and testing services. Sethi added that if investors want to in play on the markets in September quarter, the best bet is IT companies. He pointed out that these companies have been able to cut down on their expenditure due to less spending on travel cost and visa expenses in the last three months. It will also benefit from cross currency derivates, he said. 

Sethi said TCS' plan to buyback its share is another advantage and it is likely to benefit the entire IT sector. He said Cigniti Technologies Ltd, which caters to block chain and crypto currency segment, is trading in multiples of ten, has a profit margin of 16%, return on equity of 45% and has shown growth of 53% in the last three years, but is still available at relatively low valuations. He said that it can be bought for positional trade at current levels. The stock was trading around Rs 442 during the day. 

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#SPLMidcapStocks | शॉर्ट टर्म, पोजीशनल और लॉन्ग टर्म में दमदार रिटर्न के लिए आज विकास सेठी किन 3 मिडकैप शेयरों पर हुए बुलिश? जानें यहां
#ZBizBazaar #MidcapStocks @AnilSinghvi_ @vikassethi_SF pic.twitter.com/jHuAxPs9ma

— Zee Business (@ZeeBusiness) October 5, 2020

Stocks to Buy: Delta Corp 

Sethi picked Delta Corp as his short-term pick. He said the company’s business suffered a big jolt during the lockdown, however, as we hot Unlock 5.0, it is the right time to buy this stock. 

He said it has strong fundamentals and its online gaming business, like Adda 52, which are already doing good will only excel in the days to come. He said the company has good operating profit margin of 34% and market giants like Rakesh Jhunjunwala and RK Damani are also invested in this company, which also makes it a good buy. Asking to maintain a stop-loss of Rs 110, he said the stock should be bought at current level for target of Rs 130 in short-term.