Zee Business Managing Editor and Market Guru Anil Singhvi spoke to market expert Ashish Kukreja today to know the latter's Short Term, Positional and Long-Term mid cap stock picks having strong fundamentals from which investors can reap excellent returns. Ashish responded with 3 names - Unichem Labs, GMDC and Gayatri Projects.
 
Long Term Pick: Unichem Labs

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Unichem Labs is the key beneficiary of the PLI scheme of the Government. The company sold its formulation business 2 years ago. The money that Unichem Labs received by selling formulation business was used to invest in API Business. Unichem Labs did exceedingly well in the API business. It has added good capacities for API business. The market cap of Unichem Labs is close to Rs 1800 cr. Unichem Labs stock can be a good rerating candidate from current levels and investors can invest at current levels to get good returns going further. There is limited downside on the stock from current levels. The stock can see a target of Rs 350 if investors can hold for 1 year.

Positional Term Pick: GMDC

GMDC is a mining company with 4% dividend yield and a zero debt. GMDC net worth of the company is Rs 4500 cr while the market cap of the company is Rs 1600 cr. The way metals cycle has witnessed a turnaround, the stock can move to Rs 80, Rs 90 or Rs 100 sooner or later. The stock is clearly a screaming buy at current levels.  The stock can see Rs 75 to Rs 80 in medium term and Rs 100 in long term. There seems to be no down side in GMDC stock from current levels.

Short Term Pick: Gayatri Projects

Road and Infra sector are seeing good traction as the government is focussing on their revival. Gayatri Projects would be the key beneficiary of revival in road and infra space. Expect good announcements in the upcoming budget for the road and infra sector. Gayatri Projects can deleverage going forward as collections are improving and business prospects are looking good going forward. In case if deleveraging happens without dilution of equity then the stock can rebound to the levels of Rs 80 – Rs 90 from here on. This stock may see a sharp up move as soon as it is discovered by market participants. The stock can see the levels of Rs 60 to Rs 65 in short term and Rs 80 to Rs 90 in long term.