Brokerage firm Emkay Global has selected stocks from various sectors like banking, auto, cement in its small and mid cap portfolio. As part of its high punishment list, MK’s small and midcap buys stock These include Ashok Leyland, Bharat Forge, Birlasoft, Radico Khaitan and Westlife Development.
The brokerage said in a note that Ashok Leyland, the fast growing commercial vehicle (CV) offers the best play on recovery. “Firstly, AL’s market share in MHCV will exceed 30% as the 25T+ trucks reclaim their share of the segment. Second, the 3T+ LCV market has immense potential for growth in the market share by bridging the product gap. Lastly, management has clearly clarified its capital allocation, limiting investments in subsidiary businesses to approximately Rs.2.5bn/year.”
Emkay said in a note that it has added Equitas Small Finance Bank (SFB) to its SMID (Small and Mid-cap) portfolio. Under Auto, in SMID EAP, it has Ashok Leyland, Bharat Forge and Apollo Tyres.
For Bharat Forge, its positive outlook is based on the company’s leadership position in automotive forgings, focus on diversification and expected recovery in the core segment. It has got a buy rating on the stock.
The brokerage has removed Dalmia (performance risk, 50% since stock-up launch) but retained Ramco, retained Kalpataru Power and added HG Infra to the small and midcap space. Emkay also has Radico, Varun Beverages, Westlife and TCNS in its SMID portfolio.
The huge growth opportunity in vodka and RDCK’s strong 60% stake in premium vodkas, according to Emkay, make Radico Khaitan a natural beneficiary as the category becomes more mainstream.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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