Midcap Stocks to Buy: Vikas Sethi recommends 3 stocks for potential gains amid market volatility

Midcap Stocks to Buy: The domestic stock market continues to experience volatility, with sharp fluctuations driven by profit-booking at higher levels. On December 31, domestic equity markets ended the last trading session on a cautious note, with both benchmark indices paring early losses. At the close, Sensex ended with a cut of 0.14 per cent or 109.12 to settle at 78,139.01, while the Nifty50 index ended flat with a negative bias at 23,644.8. Despite this market uncertainty, analyst Vikas Sethi recommends buying three midcap stocks with strong potential for gains.

Vikas Sethi’s Stock Picks: 3 Midcaps to Buy

Vikas Sethi, of Sethi Finmart Private Limited, has recommended three midcap stocks to buy, each with strong growth potential. He recommends buying SAMHI Hotels for the short term, ASK Automotive for a positional investment, and JSW Infrastructure for the long term.

SAMHI Hotels (Short-Term Investment)

Vikas Sethi suggests SAMHI Hotels as a short-term buy. The stock is currently trading at Rs 201.05, with a target price of Rs 220 and a stop-loss at Rs 195.

Target: Rs 220  
Stop-Loss: Rs 195  

SAMHI Hotels manages well-known brands such as JW Marriott, Hyatt, and Sheraton, with 4,800 rooms across 31 hotels. The company is expanding, and occupancy levels are strong, which indicates a positive outlook for the stock. With 86 per cent of the company held by FIIs and DIIs, SAMHI Hotels is a solid short-term pick in the hotel sector.

ASK Automotive (Positional Investment)

For a positional investment, Sethi recommends ASK Automotive. The stock is currently trading at Rs 474.55, with a target price of Rs 510 over the next 3-6 months. The stop-loss is set at Rs 440.

Target: Rs 510  
Stop-Loss: Rs 440  

ASK Automotive manufactures advanced braking systems for the two-wheeler segment, with major two-wheeler manufacturers as clients. The company has also established technical partnerships with several foreign firms, enhancing its growth prospects. 

Furthermore, ASK Automotive is focusing on the rapidly growing electric vehicle (EV) sector. The company's strong fundamentals and impressive performance in the September quarter—where its PAT rose from Rs 38 crore to Rs 66 crore—make it a good positional investment.

JSW Infrastructure (Long-Term Investment)

For long-term investors, Sethi recommends JSW Infrastructure. The stock is currently trading at Rs 317.95, with a long-term target price of Rs 425.

Target: Rs 425 

JSW Infrastructure, part of the JSW Group, is India's second-largest commercial port operator by cargo handling capacity. The company provides a wide range of port-related services. Recently, the government announced a Rs 76,000 crore investment in Palghar, with JSW Infrastructure signing agreements for the project. 

The company's fundamentals are robust, with a PAT of Rs 373 crore in the September quarter, up from Rs 255 crore last year. With an operating margin of 48 per cent, JSW Infrastructure presents a solid option for long-term growth.