Here are top seven stocks from the midcap space:
Aditya Birla Fashion & Retail: BUY
Aditya Birla F&R offers a strong combination of India’s top-four apparel brands (Madura division) and one of the largest value-fashion retail networks (Pantaloons). The steps taken to turn Madura around should lead to sustainable same-store sales growth (SSG).
Crompton Consumer: BUY
Crompton Consumer has set itself a target to be the fastest-growing company in the sector with an aim to create ‘disproportionate’ stakeholders returns. Crompton has margin tailwinds with an opportunity to grow not only in its existing categories but also considerably expand its addressable opportunity.
Century Plyboards: BUY
Century Plyboards is transitioning from a market leader in plywood to a complete interior-infrastructure-solutions provider by leveraging its brand strength and distribution network.
Its diversified raw material sourcing capability is its key competitive advantage. It has scaled up its laminates business operations and is further expanding its capacity about 50% to 7.2m sheets by FY18CL.
It has made a strong entry into the MDF market with an installation capacity of 198,000 cubic metres, around 35-40% of the total MDF capacity. The recent cut in GST rates also impacted its margins.
Jubilant FoodWorks: BUY
Jubilant FoodWorks, a play on the recovery in consumer sentiment and its growth focus and profitability should drive strong earnings growth.
Apollo Hospitals Ltd: BUY
Apollo Hospitals is seeing a turnaround in its existing and new hospitals.
Oberoi Realty and Godrej Properties: BUY
Both companies are major beneficiaries of the shift to organised developers after the implementation of RERA.