Mid-Cap Stock Picks with Anil Singhvi: GNFC, Sudarshan Chemicals and Mishra Dhatu Nigam are stocks to buy today, says Vikas Sethi

In today's edition of Special Mid Cap Picks show, Zee Business Managing Editor and Market Guru Anil Singhvi has brought out the names of 3 top stocks to buy through his panel of eminent market voices and share bazaar experts. The Market Guru spoke to Vikas Sethi, to know the latter's Short Term, Positional and Long-Term mid cap stock picks having strong fundamentals for reaping smart returns. GNFC is the leading company in making TDI with over 50% market share. Sudarshan Chemicals are a leading color and effect pigment manufacturer. Mishra Dhatu Nigam is picked because it caters to Defense segment and will be huge beneficiary if any sops are announced in upcoming Budget session, here we list them all. 
 
Long Term Pick: GNFC 

GNFC is picked from Fertilizer and Chemical Space. Fertilizers business is only a part of the Company's growing sphere of activities. In fact, industrial chemicals have been the dominant driver of growth for the Company in recent times. This company is leading company in making TDI. GNFC has 50% market share in TDI. The product prices are on an uptrend and are holding firm. Q2 FY21 profit stood at Rs 138 cr vs Rs 1 cr in Q1 FY21. Q2 FY21 profit was much better when compared to Q2 FY20 on a yoy basis as well. Fundamentals of GNFC are extremely strong and will continue to outperform in the coming quarters.   
GNFC is engaged in manufacturing and selling fertilizers such as Urea, Ammonium Nitrophosphate under the umbrella NARMADA. GNFC has to its credit one of the largest Ammonia plant, a reference plant in the world of fuel oil-based technology along with the world's largest single stream Urea plant. GNFC is into manufacturing of neem-based products (FMCG business of the company) and it is expected that in coming quarters, this segment will also do well. GNFC is trading at Valuations of 7, company gave dividend of Rs 5 last year and the dividend yield of the company is 2 – 2.5. Target price of GNFC is Rs 325 in next 9 to 12 months.    

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Positional Pick: Sudarshan Chemicals 

Sudarshan chemicals is a leading color and effect pigment manufacturer with experience of over 60 years. Sudarshan chemicals develop and produce a range of high-quality organic and inorganic pigments and effect pigments for the Plastics, Coatings, Cosmetics & Specialty industries. Sudarshan chemicals started manufacturing pigments in 1952 with a handful of inorganic pigments and since then flourished with a breadth of products that cover classical azo pigments, high performance pigments, effect pigments and pigment dispersions. Sudarshan Chemicals primarily serves the coatings, plastics, inks and cosmetics markets. They have sales offices in India, Netherlands, USA, and China and over 170 channel partners globally to achieve a consistently high level of service. Fundamentals and financials of the company are extremely strong. Return on Equity is 23.8%, Debt to Equity ratiois close to 0.5%. Valuation of Sudarshan Chemicals is extremely attractive at current levels. The target price on the stock is Rs 550 with stop loss of Rs 485.  

जानिए विकास सेठी ने आज शॉर्ट टर्म, पोजीशनल और लॉन्ग टर्म में आपके मुनाफे के लिए किन 3 मिडकैप शेयरों को चुना?#ZBizBazaar #SPLMidcapStocks #MidcapStocks @AnilSinghvi_ @vikassethi_SF pic.twitter.com/sJd1KLKvRf

— Zee Business (@ZeeBusiness) January 11, 2021

Short Term Pick: Mishra Dhatu Nigam  

This company is being picked because it caters both Metal and Defense segment. Mishra Dhatu Nigam will benefit as the metal prices are soaring and metals stocks are in an uptrend. Also, all eyes are now on Budget, defense sector will benefit due to Make in India theme. Tha margins of the company are much stronger when compared to any other metal company. The Operating Margins of Mishra Dhatu Nigam is near 29%, return ratios of the company are good, Return on Equity is 16%, Debt equity ratio is close to 0.14 which indicates that the fundamentals of the company are extremely strong. The key reason for picking this stock is because Defense sector will remain in focus due to Budget and this company will be a huge beneficiary of any soaps given in the budget to the defense sector. Focus on Exports will also benefit the company. The target price on the stock is Rs 220 with target of Rs 198.