Midcap Stock Picks with Anil Singhvi: SBI Cards, Castrol India, Aegis Logistics are top buys, says Hemang Jani
Midcap Stock Picks with Anil Singhvi: In conversation with Zee Business Managing Editor Anil Singhvi on the 'Special Midcap Stock Picks' show, Motilal Oswal Securities’ Hemang Jani recommended three stocks that would give good returns to investors. Jani picked SBI Cards, Castrol India, and Aegis Logistics with long, positional, and short-term views respectively. Here is why this expert picked these shares.
Long Term Pick: SBI Card
The market expert Hemang Jani predicts that SBI Card today is what HDFC Bank and ICICI Bank were around 15 years earlier. SBI Card has the same potential as these banks had then amid being into a unique business setup, says Jain.
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He adds, being the second-largest player in the card segment, the penetration and growth potential in this company is enormous. Investors who have a long-term view should certainly purchase the shares of SBI Cards, as they could get a heavy premium, says the analyst.
Moreover, Citi Bank’s decision to withdraw from the consumer credit card business, would help SBI Card to expand its business, Jain points out. He sets a target of Rs 1200 apiece for one year.
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Positional Pick: Castrol India
The analyst, in his positional perspective, picks a stock that has an MNC value, plus the return ratio of this stock is over 50 per cent. Jani mentions Castrol India does a dividend payout of around 80 per cent and the company’s shares are getting a good 5 per cent dividend yield.
He points out the quarter four results of this company had been extraordinary and it is also taking measure to expand business like tie-up with 3M, launching EV fluids in China and Europe markets, He adds, the management, in concall, also gave good guidance with respect to CAPEX, he sets a price target of Rs 170 per share in the next three to six months period.
Short Term Pick: Aegis logistics
According to analysts, with the rising demand for gas across the globe, Aegis logistics is in a sweet spot with respect to business, This oil and gas-related logistics company has good terminals. Jani says this company has well-placed connectivity with respect to pipelines at Mumbai, Kandla and Pipavav. He adds, a growth of 20 per cent is seen in terms of return ratio on cash. The market analyst set a target of Rs 350 per share in the next one to three months on a short-term basis.
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