Sharekhan Latest Recommendation Includes 3 Mid Cap Stocks, Buy For Higher Returns

Sharekhan has recommended investors to buy 3 mid cap stocks that are showing upside potential in near term. These stocks are Cummins India Ltd, AU Small Finance Bank, and Dalmia Bharat Ltd. Sharekhan has maintained bullish view on all 3 stocks that can fetch good returns. Check key details below:

Buy Cummins India Ltd

Sharekhan has given buy rating to Cummins India with a target price of Rs 1755 apiece. The current market price of Cummins India is Rs 1493 apiece. If you buy Cummins India today, you can get potential 18% return soon.

The stock has a market capitalisation of Rs 41,401.21 crore. The stock's 52-week high is Rs 1551 apiece and 52-week low is Rs 877 apiece, respectively.

The stock operating in Engineering sector has given 172% return to investors in last 3-years, 76% in last 5-years, and 50% return in last 1-year. The stock has rallied 20% in last 3-months and 11% in last 1-month.

According to the analyst, "Cummins is likely to sustain the growth momentum as demand continues to be robust in sectors like data centers, healthcare and infrastructure. In exports as well, the company has been continuously revamping its product portfolio and offering fit-for-market products which has helped it gain market share. Cummins has strong balance sheet and steady cash flow generation. Cummins' industry leading margins, product depth and strong parentage makes it the best bet in industrial space. Hence, we retain a Buy on the stock with a revised PT of Rs. 1,755."

2. Buy AU Small Finance Bank

Sharekhan has maintained bullish view on AU Small Finance Bank and assigned a target price of Rs 800 apiece. The current market price of the stock is Rs 664 apiece. If you buy AU Small Finance Bank now, you can get 20% potential upside.

The stock's 52-week high is Rs 732 apiece and 52-week low is Rs 467 apiece, respectively. The company has a market capitalisation of Rs 44,254 crore. The stock has given 89% return in last 5-years, 67% in last 3-years, and 14% in last 1-year.

According to Sharekhan, "Higher provision coverage and contingent buffers provide a cushion for any future risk. The bank is on track to become a full-scale universal retail-focused bank by adding to its products and features. The objective is to maintain strong credit filter, granular asset and liability, and cross-sell strategy, all of which should bode well for future earnings growth. We maintain our Buy rating on the stock with an unchanged price target (PT) of Rs. 800."

 

3. Buy Dalmia Bharat Ltd

Sharekhan has maintained buy rating for Dalmia Bharat with a target price of Rs 2250 apiece. The current market price of the cement sector stock is Rs 1855 apiece. If you buy Dalmia Bharat now, you can get 21% return.

The shares have rallied 128% in last 3-years and 64% in last 5-years. In last 3 months, there is a rally of 11% and again similar rise in 1-month.

Recently, Dalmia announces acquisition of 9.4mtpa cement capacity along with 6.7mtpa clinker and 280MW power capacities of Jaiprakash Associates.

According to Sharekhan, "The acquisition would lead to an increase in leverage in the near term. However, it would still remain within its comfort zone, considering its under-leverage balance sheet and strong OCF generation capabilities. Currently, we do not factor in the said acquisition in our estimates awaiting closure of the deal and further details on the acquired assets. We retain a Buy with a revised price target (PT) of Rs. 2,250, increasing our valuation multiple to factor in faster capacity additions and its strong growth potential led by capacity expansions."

 

Disclaimer

The stocks have been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.