Market analyst Ashish Maheshwari today recommended three mid-cap stocks for investors to buy to generate high returns. In today’s edition of Special Mid Cap stocks show with Zee Business Managing Editor Anil Singhvi, he picked stocks with short term, positional medium term and long term views. See which stocks were picked. (#SPLMidcapStocks).

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Top Stocks To Buy: Bank of Maharashtra

Maheshwari recommended Bank of Maharashtra as a long term pick. He said that the PSU bank stocks are likely to do well, following the recent rally in the SBI stock, since it is the leader in the PSU bank space. The PSU bank stocks are now placed well to give high returns as the loan moratorium period end in August. The fear around NPAs have also been accounted as most banks have already made provisions for NPAs.

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Bank of Maharashtra’s profits in the last quarter were Rs 100 cr which was a 25 per cent on quarter growth. The NPAs have come down and the government is also putting equity in it, he said. Investors who are willing to invest in stock should expect a 40 per cent upside over a six month period. This stock is currently trading around Rs 14.

Top Stocks To Buy: Indostar Capital

The technical analyst picked Indostar Capital - another stock from the BFSI segment. Maheshwari said that he was bullish on this sector. This stock has been seeing a good upmove over the last two days and said that this NBFC stock will be a good buy for the investors. This stock is available at attractive valuations, which was 50 per cent of its IPO price. A big change has happened on the promoter front in the form of Brookefield Asset Management. 

It has also changed focus from wholesale broking to retail broking. The company has cleaned its FY20 book and there will be a lot of improvement in FY21. It is one of the most undervalued NBFC companies, he said. It should be bought at current levels. This stock is currently trading around Rs 306.  

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Top Stocks To Buy: CreditAccess Grameen     

The technical analyst picked CreditAccess Grameen with a short term view. Maheshwari said that this stock still has a lot of value left in it. This stock is currently trading around Rs 676. He said that the 52-week high for this stock was at Rs 1000 and it is still around Rs 300 behind this level. Most other NBFCs have already seen good momentum. The strong point about this company is that it has 82 per cent exposure in rural India, which has been the biggest beneficiary of what we can call ''unlockdown''. This company is fundamentally very strong with net NPAs at zero level. He puts the target price between Rs 725-Rs 750.