Mid-cap Picks with Anil Singhvi: JK Lakshmi Cement, Nelcast, Max Healthcare are stocks to buy, says Ambareesh Baliga

In yet another segment of Special Mid-cap Stocks show with Zee Business Managing Editor Anil Singhvi, market analyst Ambareesh Baliga today revealed 3 stocks which he said have the potential to give high returns to the investors. He picked stocks from cement, engineering and health sectors. Know which stocks he picked and why they are poised to do well.

Top Stocks To Buy – JK Lakshmi Cement 

Baliga picked JK Lakshmi Cement as his long term pick. This stock is currently trading around Rs 272. This company serves north, west and east India and it has a capacity of 13.4 million tns. The expectations in FY21 will be similar to FY 20 where one may not see growth but in FY 22 the growth expectations are around 10 per cent, he said.  

The construction activity will resume in two weeks as the monsoon is over and it is expected that the cement prices would rise. The company has taken measures for cost optimisation during the pandemic which is likely to continue. This would improve margins, too. The EPS is 25.5 for FY 22. He expects the target price to go up to Rs 380. This is within a span of a year.   

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#SPLMidcapStocks | शॉर्ट टर्म, पोजीशनल और लॉन्ग टर्म में किन मिडकैप शेयरों में बनेगा पैसा? अंबरीश बलिगा से जानिए उनकी 3 दमदार मिडकैप PICK#ZBizBazaar #Midcap #MidcapStocks @ambareeshbaliga @AnilSinghvi_ pic.twitter.com/R90QP0yZCe

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Top Stocks To Buy – Nelcast 

He picked Nelcast as a positional medium term stock. This company is one of India’s largest foundries. The foundry does ductile and grey iron casting. Its capacity is around 1.18 lak tns. The company is expanding and the capacity could go up to 1.6 lakh tns over the next 1-2 quarters. It caters to HCV, LCV cars, tractors and railways. This stock is currently trading around Rs 61. It showed good growth in FY18 and FY19, though its growth was subdued in FY20. It should come back to its normal business over the next 2-3 quarters. He said the medium term target is Rs 85.  

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Top Stocks To Buy – Max Healthcare

Baliga picked Max Healthcare as his short term pick. This is a new listing and is a demerged entity of Max India. The major shareholder is KKR. It has 12 hospitals and 4 medical facilities. Around 85 per cent of its beds are in metros like Delhi and Mumbai. The occupancy has also got back to 65 per cent after getting down to 33 percent during the lockdown. Its per bed revenue is highest among hospitals. They also have a land bank. The pathology department has also grown by 105 per cent in 4 years. This stock is currently trading around Rs 120. The target price is Rs 132-Rs 140. He puts the stop loss at Rs 113.