Stock to Buy Amid Market Sell-off: Sandeep Jain bets on this midcap, target indicates up to 30% upside

Stock to BUY: After the sharp run-up earlier this week, Dalal Street took a breather on the third trading day, with investors locking in profits and staying cautious amid fresh global cues. Technology stocks were under pressure through the session after news around new AI tools from Anthropic weighed on global tech sentiment, triggering selling in IT names back home as well.

Still, the broader market showed resilience, with benchmarks managing to end marginally higher despite intraday volatility.

The BSE Sensex closed at 83,817.69, up 78.55 points, while the NSE Nifty 50 settled at 25,776, gaining 48.45 points. Traders said the market is now clearly stock-specific, with money moving away from crowded trades into names where valuations have cooled off.

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Correction creates space for fresh entries

According to market participants, the recent correction in mid- and small-cap stocks has started throwing up pockets of value. Stocks that once looked stretched are now trading closer to their long-term averages, making selective buying more comfortable.

Speaking with Anil Singhvi, market expert Sandeep Jain said investors should not be spooked by short-term volatility. Instead, he believes the correction has done the market some good.

“There has already been meaningful time and price correction. Good businesses are now available at levels we were not seeing earlier,” Jain said.

Mayur Uniquoters back on radar

Among the stocks he highlighted was Mayur Uniquoters, a name Jain has tracked for over a decade. He pointed out that the stock, which earlier looked expensive, is now trading at a much more reasonable valuation.

At current levels, Mayur Uniquoters is available at around 14 times earnings, a sharp contrast to earlier phases when the stock was priced for perfection.

The company is the country’s largest maker of artificial leather and has been in business for more than 30 years. Its products are widely used in the automobile segment, giving it steady demand visibility.

What works in favour of Mayur Uniquoters

Maruti Suzuki, Tata Motors, Mahindra & Mahindra, MG Motor and Honda Cars India are among Mayur Uniquoters's key customers. The long-standing relationships with OEMs add comfort and stability, much needed in volatile markets.

The company was also named in the Forbes Asia Top 200 list of companies under the $1 billion category IN 2023, reflecting its scale and operational consistency. The company’s market capitalisation currently is at about Rs 2,600 crore.

Numbers remain solid

Fundamentally, the business continues to hold up well. Its Piotroski score of 9 reflects strong balance-sheet quality, while promoter holding remains firm and foreign investors continue to stay invested.

Why the stock lagged earlier

Jain noted that the stock’s underperformance had more to do with overall market sentiment than company-specific concerns. Despite delivering good results, the stock struggled to move up as broader markets turned cautious.

“That mismatch between fundamentals and price is what investors should look for,” he said. With valuations cooling off and business performance intact, market watchers believe the stock could be well placed once sentiment stabilises.