Mar 28, 2013, 10.42 AM | Source: CNBC-TV18
On CNBC-TV18's Investor camp, SP Tulsian of sptulsian.com picked five stocks from the midcap space which should be on investor's radar till elections get announced (March or early 2014).
SP Tulsian (more)
CEO, sptulsian.com | Capital Expertise: Equity - Fundamental ,IPO
Below is the edited transcript SP Tulsian's comments
The carnage seen in midcap stocks in the last couple of months has scared investors. Yes Bank , Zee Entertainment , Apollo Hospital , Tata Global and MCX are five midcap stocks which one can consider for 2013 or March 2014, till elections are being announced. These stocks are likely to get migrated to the largecap category in next 5-15 years.
I have chosen stcoks from banking, financial services, healthcare services, media and FMCG sector. If the economy has to grow with a normal pace of around 5-5.5 percent then banks and financial services are expected to grow by 2.5 times in terms of the asset balance sheet. Similarly we are seeing demand coming in FMCG and health services. Media will do well because we all need entertainment.
These stocks get corrected whenever there is news flow, quarterly results or any developments on political front or global factors. Even if one is buying them from a long term perspective, one can expect get return of 5-6 percent in two-three months, keep booking profits because we amy get them again at a lower level. If not at 5-6 percent lower, then maybe at 2-3 percent.
Yes Bank is the fourth largest private sector bank. There is confidence with respect to their corporate governance. The bank is likely to see earnings per share (EPS) of Rs 35-36 for FY13. They are consistently posting growth of 18-20 percent in topline.
Zee Entertainment has 32 channels in India, 24 channels globally. It has a top line of Rs 2,500 crore, half of that is coming in from subscription and half from ad revenue.
Apollo Hospital is the leader in the healthcare industry. They have corporatised the concept of healthcare services. Tata Global is a global leader in tea and coffee. They have presence in US, Canada, Europe, Australia, India. MCX is the leader in commodity trading with 85 percent market share.