Midcap Stocks To Buy: Vikas Sethi recommends 3 stocks for potential profit amid market volatility
Stocks to Buy: The domestic stock market continues to be volatile, with sharp volatility driven by profit booking at high levels. On December 31, domestic equity markets ended the last trading session on a cautious note, with both benchmark indices covering early losses. Finally, the Sensex ended down by 0.14 percent or 109.12 percent to settle at 78,139.01, while the Nify50 index ended with a negative bias at 23,644.8. Despite this market uncertainty, analyst Vikas Sethi recommends buying three midcap stocks with high upside potential.
Vikas Sethi’s Stock Picks: 3 Midcaps You Should Buy
Vikas Sethi, of Sethi Finmart Private Limited, recommends three midcap stocks to buy, each with strong growth potential. He recommends buying SAMHI Hotels for the short term, ASK Automotive for a positional investment, and JSW Infrastructure for the long term.
SAMHI Hotels (Short Term Investment)
Vikas Sethi suggests SAMHI hotels as a short-term buy. The stock is currently trading at Rs 201.05, with a price target of Rs 220 and a stop loss of Rs 195.
Price: R220
Stop-Loss: 195 Rs
SAMHI Hotels owns well-known brands such as JW Marriott, Hyatt, and Sheraton, with 4,800 rooms in 31 hotels. The company is growing, and occupancy rates are strong, indicating a positive outlook for the stock. With 86 percent of the company owned by FIIs and DIIs, SAMHI Hotels is a strong short-term option in the hotel sector.
ASK Automotive (Positional Investment)
For a short-term investment, Sethi recommends ASK Automotive. The stock is currently trading at Rs 474.55, with a target price of Rs 510 over the next 3-6 months. The stop-loss is set at Rs 440.
Price: R510
Stop-Loss: Rs 440
ASK Automotive manufactures advanced braking systems for the two-wheeler segment, with major two-wheeler manufacturers as customers. The company has also established technical partnerships with several foreign firms, enhancing its growth prospects.
In addition, ASK Automotive focuses on the fast-growing electric vehicle (EV) sector. The company’s strong fundamentals and impressive performance in the September quarter—when its PAT rose from Rs 38 crore to Rs 66 crore—make it a good positional investment.
JSW Infrastructure (Long Term Investment)
For long-term investors, Sethi recommends JSW Infrastructure. The stock is currently trading at Rs 317.95, with a long-term price target of Rs 425.
Price: R425
JSW Infrastructure, part of the JSW Group, is India’s second largest port by cargo handling capacity. The company provides many port related services. Recently, the government announced an investment of Rs 76,000 crore in Palghar, with JSW Infrastructure signing agreements for the project.
The company’s fundamentals are strong, with PAT of Rs 373 crore in the September quarter, up from Rs 255 crore last year. With an operating margin of 48 percent, JSW Infrastructure offers a strong option for long-term growth.
