Should you buy a home or stocks of companies that build homes? Learn the tricks for share allocations in your portfolio. A great opportunity for investors to build a strong portfolio with #SIDKiSIP or Siddhrath Investment Picks. In a chat with Zee Business Managing Editor Anil Singhvi, this market analyst gives his top picks. Siddharth Sedani’s today's stock suggestions are a mix of trading and investments

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Market Analyst Siddharth Sedani said that today’s theme is “Vistaar se Vikas” which implies that the focus is on capacity expansion and development. Companies which are doing this are an excellent opportunity for investment. Many private mid cap companies are seeing green shoots, they are doing some capital expenditure by investing in brownfield and greenfield projects.

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Sedani said that this is the best time for investment into capex for companies as Government schemes like PLI and others are supportive for such investments. Government is giving incentives to companies who are investing into capex. Funding this capex is also available at best rates, the cost of capital that is the interest rates are also available at lowest rates this stage.

Sedani said that Banks are encouraging companies to borrow as Banks want to improve their credit growth. Companies in the Chemical sector, Ethanol space and Rural India are going to benefit from this.

Stocks to Buy – Sedani brings four stocks from this sector.

1st Pick: Aarti Industries

Sedani said that Aarti Industries is his first pick from speciality chemical space. The company is planning to spend Rs 3500 – Rs 4000 on capital expansion and the revenue will double by FY2024. The target price on Aarti Industries is 1980 (30% allocation should be done here out of 100%).

2nd Pick: Praj Industries

Talking about his second pick Praj Industries, Sedani said Government is focussed on increasing Ethanol Blending to 20% by FY23. Installation of Ethanol plants will benefit Praj going forward. The target price on Praj Industries is Rs 462 (30% allocation should be done here out of 100%). New tie-ups will benefit Praj Industries as the overall Ethanol Industry is going to see strong development.

3rd Pick: Grindwell Norton

Grindwell Norton is 3rd pick of Sedani, he said that the company is planning capex for 100 to 125 cr. The company is into Abrasives Business, and the target price on the stock is Rs 1350 (20% allocation should be done here out of 100%).

4th Pick: Visaka Industries

Visaka Industries is the last pick, and target price on the stock is Rs 765.  Visaka Industries has multiple product portfolios, ranging from corrugated cement sheets and fibre cement boards to hybrid solar roofs and human-made fibre yarn. The company is going to do a huge expansion of 1 lk ton for Asbestos Cement sheets.