Indian stock markets have gone for a tailspin since last 9 months. Moreover, stocks have tumbled in a big way when compared with the benchmark indices. Under broader indices, mid-caps have under-performed hugely vis-à-vis large-caps.
Let’s have a check on 5 mid-cap stocks that can be bought from investment perspective based on their strong fundamentals:
1) Jain Irrigation: This is India’s biggest irrigation company with 55% share in domestic Micro Irrigation systems; boasts of multi-product industrial profile and is largest integrated agri business player.
With increased emphasis on agricultural sector, the sector is likely to remain in good books of the finance minister in each of the Union Budget announcements.
2) Oberoi Realty: This is India’s most prominent real estate developers with almost no debt or leveraged position on its books. Today, almost all the realty firms are valued at depressing levels on account of huge debts on their books.
At such times, investors can latch on to this stock and wait for revival in the sector, to hog huge out-performance after a few quarters of time horizon.
3) PFC: This state-run power financing company has reached a point of lucrative valuations, pushed down by the project execution concerns in the power industry. However, analysts point out that the company has corrected way beyond its sound fundamental limit and can be bought for long-term investment.
4) IRB Infrastructure: This Company leads the race to India’s road construction. Though, IRB does not boast of low-debt story, healthy cash flows makes up for its debt-servicing costs, and strong earning’s prospects.
5) Educomp Solutions: This stock has grinded down from all the way to Rs.1000 at its peak to around Rs.230 in a year’s time. The stock has been battered on corporate governance issues more recently after witnessing IT raids in its offices. However, like agriculture, even education sector remains in sweet spot in the good books of the sector that need reforms by the government.
Disclaimer: The above content/report is only for the educational purpose of the readers. It does not qualify as any advice or recommendation to Buy/Sell securities. The author and the blog are not responsible for the reader’s decisions based on the above report.