In conversation with Anil Singhvi, Managing Editor at Zee Business, Market Expert Vikas Sethi picked three midcap stocks for good returns. He picked Hyderabad Industries Ltd for long term investment, Orient Cement Ltd for positional and Insecticides India Ltd for short term investment.

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Long Term Pick- Hyderabad Industries Ltd (HIL Ltd)

The market expert picked Hyderabad Industries Ltd (HIL Ltd) for long term investment. He said that the growth seen in real estate sector may impact the stocks of companies related to building solutions.

 

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Talking about the company he said that it deals in 3-4 business segments including roofing division, building solutions, etc. It is a solid company, focusing on debt reduction, he said. Speaking on the valuations he said that the company is trading in the multiples of 13-14 and return on equity is around 26 percent. June quarter result was also good with a PAT of 99 crore.

Sethi gave a target of Rs 6500 for a period of 9-12 months.

Positional Pick- Orient Cement Ltd

The market expert said Orient Cement is a company of CK Birla Group and is continuously working on improving its fundamentals. It has also reduced its debts. Rakesh Jhunjhunwala holds around 1.22 percent stake (25 lakh share) in this company, Sethi informed.

 

The company reported a PAT of 89 crores in June quarter and has a CAGR of around 60-70 percent. FIIs, DIIs own around 24 percent stake of the company, the expert said. He gave a target of Rs 185 and stoploss of 150.

Short Term Pick- Insecticides India Ltd

Insecticides India Ltd is a agri focused stock and the company works in crop protection segment that is in the business of insecticides, fungicides, pesticides, herbicides, etc. the expert said.

He added that we are witnessing shortage of agri chemicals all over the world and it can benefit the companies dealing in crop protection.

As per the valuations, the company is trading cheap compared to its peers k, debt equity ratio is of 0.25, he said. He gave a target of Rs 760 and stoploss of 695.