Mid-Cap Picks with Anil Singhvi: Solar Ind, Arvind Fashions and CCL Products are top Ambareesh Baliga recommendations
Zee Business Managing Editor Anil Singhvi, in the popular Special Mid-Cap Stocks show, guides investors in making a wise choice while picking stocks and in this exercise a special panel of experts is at hand to provide the logic behind the move.
Zee Business Managing Editor Anil Singhvi, in the popular Special Mid-Cap Stocks show, guides investors in making a wise choice while picking stocks and in this exercise a special panel of experts is at hand to provide the logic behind the move. In the show’s latest episode, the Market Guru talked to market analyst Ambareesh Baliga and took his short term, positional mid cap and long-term recommendations. Find his picks below:
Long term: Solar Industries
Talking about the company profile , market analyst Baliga informed the Market Guru that the company makes industrial explosives and it is India’s largest explosive manufacturer. Explaining the rationale behind this pick, he said Solar Ind has big chunk of market share domestically and it also has nearly 70% market shares in exports. He further said the company exports in nearly 50 countries and has its manufacturing facilities in India at nearly 25 locations. It is also difficult for new players to enter into this sector due to stringent regulatory norms, he said. About fundamentals, he said the company’s promoters hold nearly 73% holdings, while mutual funds, FIIs and institutions jointly have 22% shares and public has only 5% shares of the company. He said balance sheet of the company is strong, debt-equity ratio is 0.46 and management is also planning EBITDA margin of 21% for FY-21. Keeping all healthy prospects and fundamentals, Baliga gave a target of Rs 1325 for the stock in one-year horizon. Solar Ind was trading round Rs 1037 in today’s trading session.
Find out detailed analysis and coverage in the video below
Positional pick: Arvind Fashions Ltd
Talking about this stock, the market analyst said the company has powerful portfolio of brands like US Polo, Arrow, Flying Machine, Tommy Hilfiger and Kalvin Klein, and all of these companies individually has a potential to do a business of Rs 1000 to Rs 2000 in five years. He said the stock performed badly in quarter 1 due to Coronavirus pandemic, however in quarter 2, it has improved and nearly 77% of the company’s stores are operational. He said sales recovery at 46% is also good and is likely to improve further due to festive season ahead. He said at current valuations, the stock could go to a level of Rs 180-190 in five-six months. Arvind Fashions was trading around Rs 128
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Short-term Pick: CCL Prod
He picked CCL Prod as his short-term pick. Baliga said CCL Prod is the largest manufacturer of instant coffee and also largest exporter from India in its segment in the last 25 years. Stressing on this company, he said CCL Prod has 10% global market share in private level market and the company’s client in Vietnam has been working at 100% capacity despite Covid-19. Also, instant coffee demand saw spike during work from home. Giving a short-term target of Rs 268 in five to six days, he advised to hold this stock even for medium to long term for a price of Rs 320
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