Three Mid-Cap Stocks To Buy Now By IIFL

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Pee Vee
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Three Mid-Cap Stocks To Buy Now By IIFL

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Siemens: Building on gains! – BUY

CMP (Rs) 1,302, 3-mts Target (Rs) 1,455, Upside 12%

Siemens has staged a breakout from a downward sloping trendline connecting the previous peaks. It also resulted in a move above its 61.8% retracement (from Rs1,353 to Rs1,012) as well as it 100-WMA. On a longer time frame it suggests beginning of a new cycle. Post the breakout move on 14th March 2017, the stock has not given a close below the four-digit gann number of 1225, suggesting that it is moving in a new orbit on the upside. Based on above rationales, we recommend a buy above Rs1,300 with SL of Rs1,240 for target of Rs1,455.

Suprajit Engineering

Reco Price (Rs) 204, Previous Target (Rs) 240, New Target (Rs) 265

We had recommended a BUY on Suprajit Engineering in Q3 FY17 result update released on February 15, 2017 with a 1-year price target of Rs240. The same has been achieved in the previous trading session. We remain positive on the business prospects for the company as 1) it continues to strengthen its leadership position in the two-wheeler cable industry, 2) it has now been appointed as a tier-I supplier to Maruti for cable supplies, 3) revival in Phoenix Lamps performance is sustained and 4) synergies are reaped from acquisition of Wescon International. At FY19E P/E of 20x, valuations appear reasonable. We advise investors to hold the stock for a revised target of Rs265.

KEI Industries Ltd

Reco Price (Rs) 116, Target Price (Rs) 196

We had recommended a BUY on KEI in our initiating coverage report dated September 23, 2016 for a price target of Rs168 which we subsequently increased to Rs.196 in our result update dated February 06, 2017. The increased target was achieved in previous trading session, thus yielding a cumulative return of 69%. A combination of increased contribution from EHV and EPC segments and focus on retail sales combined with nominal increase in margins would augur well for the stock. We will review the stock post Q4 FY17 results, till then we recommend investors to hold the stock.
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