Mid-cap Picks with Anil Singhvi: Sandeep Jain recommends Sharda Cropchem, JB Chemicals and Pharma and ICICI Lombard shares ahead of Budget

Amid Indian indices showcasing some correction for past 4 sessions, Zee Business Managing Editor Anil Singhvi has been batting strongly in favour of some quality mid-cap stocks. Singhvi talked to market expert Sandeep Jain on his long-term, positional or mid-term and short-term picks and he suggested these three stocks — Sharda Cropchem, JB Chemicals and Pharma and ICICI Lombard to buy.

Long Term Pick: Sharda Cropchem

Sharda Cropchem Q3 Result of the company was excellent, much better than estimates. Sharda Cropchem stock opened with a gap up today and gave up the gains due to selling in the markets. Q3 PAT came at Rs 48 cr vs Rs 3 cr (YoY) while Topline stood at Rs 495 cr vs Rs 383 cr (YoY). The stock has consolidated for a long time in a range and the fundamentals of the company are extremely strong. Retail participation in Sharda Cropchem stock is very low. Promoters hold 75% stake, Retail holds 3.98% stake while FIIs hold 21% stake in Sharda Cropchem. Sharda Cropchem stock should be purchased for a target of Rs 350.

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Positional Term Pick: JB Chemicals and Pharma

This is an excellent company with strong fundamentals. JB Chemicals is widely committed to manufacturing a range of innovative specialty products that include various pharmaceutical dosage forms like tablets, injectables (vials, ampoules, form fill seal), creams & ointments, lozenges, herbal liquids and capsules. JB Chemicals and Pharma is trading at attractive valuations. Return on capital employed is nearly 22% – 23%, company gives good dividend and CAGR for past 3 years is 19% - 20%. JB Chemicals and Pharma growth and return numbers are very good. JB Chemicals is a zero debt company. JB Chemicals should be bought with stop loss of Rs 970 – Rs 990 and target of Rs 1150 and Rs 1190.

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Short Term Pick: ICICI Lombard

Market is expecting some positive news for the Insurance sector in the upcoming Budget. Q4 results for Insurance companies are always the best quarter when compared to the first 3 quarters. ICICI Lombard stock has corrected meaningfully and now offers a good entry point, ICICI Lombard stock should be purchased at current levels. The stop loss on ICICI Lombard should be Rs 1380 and target should be Rs 1450 – Rs 1465.