Best Midcap Stocks with Anil Singhvi! Ashish Kukreja picks Thermax, Supreme Engineering, Aptus Value Housing for high returns
The Thermax, Supreme Engineering and Aptus Value Housing stocks were recommended with long-term, positional medium-term, and short-term categories, respectively.
In a chat with Zee Business Managing Editor Anil Singhvi, market expert Ashish Kukreja recommended his top three mid-cap stock picks today for investors to buy, which have great potential to yield bumper returns. The Thermax, Supreme Engineering and Aptus Value Housing stocks were recommended with long-term, positional medium-term, and short-term categories, respectively. Know why this analyst thinks these stocks hold promise!
The long-term stock that he has picked is Thermax. He said that Environment Social Governance (ESG) was a buzzword currently. This is prioritising on global funds and the stocks in this category are performing well. He said that he considers Thermax to be by far one of the leading companies in the ESG category. It has improved tremendously in the recent quarters, Kukreja said.
He added that along with its subsidiaries, the company has a strong global presence. The company is already leading in the products like energy, environment in the ESG category. Similarly, speciality chemicals is a joker in the pack for Thermax as it is being seen now how much traction chemicals are getting in the markets. And many people don’t know that a major part of the Thermax business comes from chemicals. Accordingly, this is a high-quality stock in the ESG category. Keep a target of Rs 2,000 and return is expected in 9-12 months.
Kukreja mentioned that this is a niche category stock - Supreme Engineering. “We have covered this before also. There is not much movement in this stock but my belief is the same,” he added. Supreme Engineering is a niche player in this special alloy wire products category. There is a monopoly on some products. There is an exotic alloy steel bar, which only this private sector is making. This material is mostly used in space, aerospace, defence, thermal.
He asserted that moving ahead, the capacity will go up. "I would like to add that the market is getting dearer, and whatever discussions I am having with different industry players, the capacity has just started. There are many sectors, many industries, where many capacities are expected and at the same time more earnings will catch up. So, every downfall will bring a new opportunity," the analyst said.
Similarly, in this space when the capacities will grow then the stocks like Supreme Engineering will be benefitted. So from here within a year, we can expect a sell of Rs 50 on this stock. This stock is meant to keep in the portfolio. Slowly and steadily this stock is also expected to double, Kukreja said.
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He said that for the short term, I have picked recently-listed Aptus Value Housing. The company is doing extremely well in low-mid income group housing. “The talks of sector rotation were going on NBFC. So I feel the market will now focus on NBFCs,” he added. In the next Nifty move, PSU banks and NBFCs will surely contribute. This is a high-quality company.
शॉर्ट टर्म, पोजीशनल और लॉन्ग टर्म के लिए आशीष कुकरेजा के 3 बेहतरीन मिडकैप स्टॉक्स
Short- Aptus Value Housing
Positional- Supreme Engineering
— Zee Business (@ZeeBusiness) August 31, 2021
In today's category, all the companies I have mentioned are high-quality management companies. In the past 2-3 years, their books have doubled, nearing almost Rs 5-4 crore. And they follow a disciplined cost of capital structure. Residential housing is a structural growth. It can cross Rs 400 easily. And I feel the market has realised its value.
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