In Chat with Anil Singhvi, Siddharth Sedani recommends Visaka Industries, Mastek, and KEC International as MID CAP STOCK PICKS

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In a chat with Zee Business Managing Editor Anil Singhvi today (Thursday), market expert Siddharth Sedani recommended his best three mid-cap stock picks for investors to buy. These shares have great potential to yield bumper returns. These stocks were recommended in long-term, positional medium-term, and short-term categories. Know why this analyst thinks these stocks hold promise!    

The long-term stock today is Visaka Industries. Will advise buying Visaka Industries! Their demand and outlook are very strong. The company is into the asbestos cement and roofing business. Their asbestos and roofing business division is growing strong. It can grow in high single-digit in the next five years, Sedani said.

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Visaka Industries is also planning expansion. The company is going on 1-lakh capacity in the roofing business. Till December 2021, it is planning for Rs 50,000 expansion in the board business.  Yarn division is also doing good, and the return ratio (R0E) is around 18-19 per cent. It is a small, mid-cap company but it is a good company. It is a strong company and shows tremendous growth.  Target will be Rs 1,079, he recommended.  

Sedani added: “The positional stock is one of Anil jee’s favourite as he has recommended it several times. This is from the mid-cap IT stock – Mastek. Will advise buying Mastek! The first-quarter results are promising.”

The UK business grew from 7 per cent. The company is expecting that the US business will grow inorganically. It is planning for acquisitions also and set up a vertical as well.  Through this also they are planning to grow. There is a huge expectation of marginal expansion, which will happen in 1-2 years. Mastek is one of the best companies in the IT mid-cap. You should definitely go for this stock! Target Rs 2,880, he added. 

Sedani said: “You should go for KEC International. Apart from the power distribution business, in the past 3-4 years, they have developed their non-T&D business. The non-T&D business means civil projects, railway projects. And now these businesses have started yielding 40 per cent contribution.” 

So, the growth is coming from here. The non-T&D business has huge growth and T&D business has huge opportunities. Over 24 per cent of CAGR (compound annual growth rate) can be expected in 2 years. Definitely buy KEC International! Target will be Rs 462, he added.