Sanju Verma, MD & CEO of Violet Arch Capital Advisors is bullish on Sadbhav Engineering. "This is one of the few midcap players which actually have an return on equity (ROE) and Return on invested capital (ROIC) of something like 18 to 20 percent which is every comforting," Verma reasoned.
Emkay has come out with its report on engineering and capital goods (ECG) monthly update for January'13. According to the research firm, stock selection should be purely driven by visibility, cash flows and ROIC of the business models. L&T, Cummins India, Greaves Cotton and Blue Star are Emkay's top picks in the ECG sector.