• SENSEX
    NIFTY 50
Market

15% in 3 months! Motilal Oswal suggests 5 midcap conviction ideas for short-to-medium term

Updated : 2020-09-10 13:24:12

Most midcap stocks have recovered drastically from their March lows. On a year-to-date basis, the Nifty Midcap index has outperformed benchmarks, down around 2.5 percent as compared to a 6 percent fall in Nifty. However, most experts continue to advise to maintains caution and look at quality stocks. Motilal Oswal, in a recent report, has listed 5 high conviction mid-cap ideas across various sectors. It expects these stocks to do well in the short to medium term. One can buy this basket of 5 stocks with a potential upside of 10-15 percent over a time frame of 1-3 months, said the brokerage. Take a look:

 IPCA Labs:  The stock delivered a phenomenal performance led by HCQS opportunity, improving outlook for domestic Formulations (DF), and lower raw material cost. MOSL expects an earnings CAGR of 31 percent in FY20–22 for the pharma stock supported by healthy outperformance by the DF segment, and 500 bps margin expansion owing to a better product mix and operating leverage.
IPCA Labs: The stock delivered a phenomenal performance led by HCQS opportunity, improving outlook for domestic Formulations (DF), and lower raw material cost. MOSL expects an earnings CAGR of 31 percent in FY20–22 for the pharma stock supported by healthy outperformance by the DF segment, and 500 bps margin expansion owing to a better product mix and operating leverage.
 Exide Industries:  According to MOSL, the stock should improve its market share as economic recovery led demand would come in from auto OEMs and the industrial segment. It prefers the company as it offers superior risk-reward considering its market leadership, technology alliances, backward integration and better product mix.
Exide Industries: According to MOSL, the stock should improve its market share as economic recovery led demand would come in from auto OEMs and the industrial segment. It prefers the company as it offers superior risk-reward considering its market leadership, technology alliances, backward integration and better product mix.
 MCX : The brokerage is positive on MCX due to a sharp rally in gold prices and the normalization of margin requirements in the Crude segment. Progress on other growth initiatives, such as Bullion/ Metal index futures, institutional participation, and spot exchanges are also encouraging, added MOSL.
MCX: The brokerage is positive on MCX due to a sharp rally in gold prices and the normalization of margin requirements in the Crude segment. Progress on other growth initiatives, such as Bullion/ Metal index futures, institutional participation, and spot exchanges are also encouraging, added MOSL.
 Teamlease : As the economy unlocks gradually and enterprises look to dodge supply dis ruption, MOSL believes the company/sector has already passed the peak of uncertainty. Encouraging rebound in the unemployment situation and the hiring outlook corroborate this view. As both the central and state governments look forward to liberalizing and formalizing the labor markets, TeamLease should be among the biggest direct beneficiaries, it added.
Teamlease: As the economy unlocks gradually and enterprises look to dodge supply dis ruption, MOSL believes the company/sector has already passed the peak of uncertainty. Encouraging rebound in the unemployment situation and the hiring outlook corroborate this view. As both the central and state governments look forward to liberalizing and formalizing the labor markets, TeamLease should be among the biggest direct beneficiaries, it added.
 AU Small Finance Bank:  The lender reported healthy earnings led by robust treasury performance and controlled opex. The bank prudently made additional COVID-19 provisions and improved its provision coverage ratio to 64 percent, said the brokerage. A steady decline in moratorium book, reduction in Special Mention Account numbers and improving collection trend has eased pressure on asset quality for the lender, MOSL noted.
AU Small Finance Bank: The lender reported healthy earnings led by robust treasury performance and controlled opex. The bank prudently made additional COVID-19 provisions and improved its provision coverage ratio to 64 percent, said the brokerage. A steady decline in moratorium book, reduction in Special Mention Account numbers and improving collection trend has eased pressure on asset quality for the lender, MOSL noted.
Live TV
Advertisement