Smallcap Stocks to Buy | Vikas Sethi recommends 2 stocks for short-term gains; note down targets
Vikas Sethi Stock Picks: According to Sethi these stocks could give returns of up to XX per cent in the short term horizon of one month.
Vikas Sethi of Sethi Finmart has recommended buying two smallcap stocks for short-term investors, citing strong fundamentals, growth outlook, and favorable sector trends.
Here is the list of these two stocks along with share price targets and rationale:
Vikas Sethi Stock Picks | Mahindra EPC
Sethi recommends buying Mahindra EPC shares, which ended nearly 2 per cent higher at Rs 147.39 apiece on the NSE on Tuesday, May 13.
Vikas Sethi Stock Picks | Mahindra EPC
Mahindra EPC, part of the Mahindra Group, operates in the agriculture and irrigation space and manufactures products such as micro-irrigation systems (drip and sprinkler systems), agricultural pumps, greenhouses, and landscape solutions.
The company has a joint venture with Israeli firm Top Greenhouses Ltd, a global leader in protected cultivation. The JV offers greenhouse and protected farming solutions.
Mahindra EPC also has a growing export footprint in countries like Uganda, Nigeria, and Thailand, Sethi said.
For the December quarter, the company reported an impressive turnaround, with PAT jumping to Rs 6 crore, compared to Rs 1 crore in the same quarter last year.
"Mahindra EPC is a low-debt company with a debt-to-equity ratio of just 0.09, and it is well-positioned to benefit from a favorable monsoon forecast, including the likelihood of early rainfall," according to Sethi.
Mahindra EPC share price target
He recommends buying Mahindra EPC shares for a short-term target of Rs 160, suggesting a potential upside of 8.55 per cent, with a stop-loss at Rs 137.
Vikas Sethi Stock Picks | Cyient DLM shares
Sethi’s second stock recommendation is Cyient DLM, which closed 3.69 per cent higher at 467.55 on Tuesday's session.
He highlighted that the Prime Minister’s recent speech strongly reinforced the government’s commitment to ‘Make in India’ in the defense and aerospace sectors, which bodes well for companies like Cyient DLM.
"The company has also expanded globally through the acquisition of US-based Alto Electronics. It reported a PAT of Rs 31 crore in the latest quarter, up from Rs 22 crore year-on-year," according to Sethi.
Sethi said that Cyient DLM has strong institutional interest, with 31 per cent holding by FIIs and DIIs, including Morgan Stanley, Citigroup, HDFC, Nippon, and ICICI Prudential.
"With the defense sector in focus and the stock corrected significantly from its 52-week high of Rs 870, Cyient DLM offers an attractive entry point for short-term gains." he said.
Cyient DLM share price target
Sethi suggests buying the Cyient DLM stock for a short-term target of Rs 480, with a stop-loss at Rs 440. The given target suggests a potential upside of 2.78 per cent.