Mithun Aswath, managing partner of Kivah Advisors on Friday said he believes that domestic investors continue to remain cautious. However, there is value in some of the beaten down midcap stocks.
He said, "The midcap space has still not reached all-time highs. You have seen the Nifty reach its all-time high, while the mid and small caps have still lagged behind. That is primarily also because we have not seen similar amount of flows into the mid and small cap fund area."
Aswath said he has invested in pharmaceuticals, technology, and some auto names. However, currently he likes the travel and retail space.
"Within the retail space one of the stocks that we have advised to clients recently is a company called Raymond which trades at a huge discount to its asset value at the current levels. As things have started to open up, maybe in this Diwali quarter, you will see revenue move back up for a company like Raymond," he said.
On Cera Sanitaryware, Aswath said, "The company is a leader in the sanitaryware, faucets, as well as tiles space. It is mainly in the former 2 categories and addresses tier-2 and tier-3 markets which have been less impacted by COVID. The last quarter was hit because of their own issues they had in their factories. But in the second half, we do think there could be a big recovery."
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