In a conversation with Zee Business Managing Editor Anil Singhvi on the Special Midcap Stock Picks show today, Market expert Sandeep Jain recommended three stocks to investors. Jain picked Thirumalai Chemical, Ircon International, Salzer Electronics with long, positional, and short-term views respectively. Here is why this expert picked these shares  

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Long Term Pick: Thirumalai Chemical 

Stating that chemical stocks are buzzing quite well, market expert Sandeep Jain says Thirumalai Chemical has corrected from its highs of Rs 120 per share and currently trading at Rs 90-95 per share level. Jain expects that the stock to grow from here to Rs 115-120 apiece in a long-term view.  

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The company has reported around 29-30 per cent CAGR profit in the last five years. Its return on capital and equity is at around 18-20 per cent, Jain mentions. The company reported a profit of Rs 36 cr as compared to Rs 1 crore loss a year before in the same quarter, Jain explains. 

Positional Pick: Ircon International 

Sandeep Jain says Ircon International, recently, had an offer for sale in March, the stock is at a good level to purchase and has corrected to levels of Rs 80 per share. In this PSU company, has brought down its stake to 73 per cent, moreover, the stock is available at 12 PE multiple, book value is around Rs 89, and the dividend yield is at 5.40 per cent, says Jain. 

The company’s sales CAGR is around 20-21 per cent and profit CAGR at around 11-12 per cent, adds Jain. Being bullish on the stock, Jain sets a target of Rs 97-102 per share for a positional view with a stop loss of Rs 85 per share. 

Short term pic: Salzer Electronics 

The market expert says, this company has its roots in L&T, the technical and Levels of the stock are pretty good. He adds, the company was incorporated in 1985, as a joint venture with L&T in 51:49 ratio, however, the latter took an exit from all non-core and small businesses.  

Salzer Electronics still has a marketing tie-up with L&T, says Jain, adding further, the company is into the business of Rotary and Modular switches. The company is extremely cheap in terms of valuations, which is at 8-9 PE multiple, the profit CAGR is at 14-15 percent and sales CAGR is at 13-14 per cent. Jain sets its target at Rs 130-135 per share for the short-term view.