Mid-cap Picks with Anil Singhvi: Karnataka Bank, HAL and BASF are stocks to buy, says Siddharth Sedani


In today’s edition of Special MidCap Stocks with Zee Business Managing Editor Anil Singhvi, analyst Siddharth Sedani picked three stocks for bumper returns. These stocks recommended by him were with a long term, medium term and short term views. Know what he recommended today and why

Long Term pick – Karnataka Bank

The long term target on Karnataka Bank is Rs 85. Karnataka Bank is a revival story. FY22 is expected to do better for Karnataka Bank and the profitability of the Bank will improve. NPAs of the banks are steady and the valuation of the Bank on an adjusted FY23 book value basis is trading 0.3 times. Karnataka Bank is a good investment opportunity for investors at current valuations.

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Positional Pick: Hindustan Aeronautics (HAL)

Hindustan Aeronautics stock will be a huge beneficiary of any positive announcement in Budget for the defense sector. The cabinet has given clearance of Rs 48000 cr order for procurement of Tejas aircrafts. HAL will be the big beneficiary of this order from the Government. The company already has an order book of 54000 cr. 13% CAGR growth on the revenue front is possible in HAL going forward. Hindustan Aeronautics stock should be purchased at current levels for the target of Rs 1150.

Short term pick: BASF

German companies are known for world class manufacturing and one such multinational German company is BASF. This company is the king of chemical business all over the world. Also, the way BASF has changed its business model, they have shifted from agency to merchandise business, they have started doing contract manufacturing. The sales of the company will get the boost and the margins of the company will also improve going forward. Other return ratios of the financials will also improve due to change in their business model. BASF is an excellent company with strong fundamentals, the company should be purchased with the target of Rs 1915.

 





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