Market analyst Ambareesh Baliga today recommended three mid-cap stocks for investors to buy to generate high returns. In today’s edition of Special Mid Cap stocks show with Zee Business Managing Editor Anil Singhvi, Baliga picked stocks with long term, positional medium term and short-term views.

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Long Term Pick: CARE Rating

This stock is a credit rating agency. This stock has fallen from levels of Rs 1600 – Rs 1700 to Rs 200 – Rs 250 due to defaults in NBFC space in 2017. The top management has seen some changes last year. Ajay Mahajan is the CEO of the company now. He has good experience and a strong track record. Also the core team at CARE is focussed on the turnaround of the company. The balance sheet of the company holds cash of Rs 400 cr against market cap of 1450 cr. Dividend yield of the company is nearly 3%. They have clients across the spectrum. The focus of the company is to improve the revenue stream from the client. Earnings of the company will improve from here on. The market share of the company has fallen to 20% from 25% - 30%. The target price on the stock is Rs 640. The time frame is 1 year.

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Positional Term Pick: Mazagon Dock

This is a defence PSU. This company is into the making of submarines and ships. They make it for the Ministry of Defence and it is used by Indian Navy. They also make ships for commercial clients. This is the only company which can build submarines. The focus now is on Atmanirbhar Bharat, which will give many opportunities to Mazagon Docks. The Navy Budget is 4 lk crs over for next 5 to 7 years. The company has been paying dividends consistently and after the IPO the performance of the company has not been good. The medium term target on the stock is Rs 240 and long term target is Rs 360. The order book of the company is only going to improve from here on.

Short Term Pick: Jyothy Labs

In Covid pandemic, demand for company’s products will be more. The volume growth of some products was extremely good and new products are going to see good demand going further. The distribution network of the company is strong. Volume growth of the company in Q4 FY21 is 15% and EBITDA growth should be 20%.  The target price on this stock is Rs