Look at RPP Infra, VRL, Rallis, Capital First: Dilip Bhat

Dilip Bhat of Prabhudas Lilladher told CNBC-TV18, "I think the midcaps have already crossed into a zone which is looking very expensive and not very easy to really back them at the moment. However, the kind of liquidity that we are seeing, surge in liquidity especially in the domestic mutual funds and they are more oriented towards the midcaps whether it is in the mutual fund or PMS segment, that is why we are seeing what it is at the moment. So, we should be careful, we should be selectively booking profits."

"As far as Prabhudas Lilladher is concerned, I think there is a stock Jubilant Life Science which we recommended at Rs 200, it is at Rs 800, I think we are pretty cautious at this particular moment. Not to say that it won’t go up further but Rs 200 to Rs 800 is almost a four times jump that we have seen. So, that is a sector where possibly we would be staying on the sides."

"Apart from that I think there will be something like Avenue Supermarts which always will remain a question mark – because that is one of the recommended stocks and it does not fit the bill as midcap but one of the stock which got listed as a midcap and then has made it to the frontline. I think that is another stock which challenges us quite a bit that on a longer term 2-3 year basis it looks pretty good. However, immediately the valuations definitely look very expensive at Rs 45000 crore market cap."

"As far as midcap is concerned we should be a lot more cautious than what we are but we still like some of the stocks like VRL, Rallis, Capital First, some of those stock we still like at the moment. There is midcap company called RPP Infra that also looks good," he added.