Gaurang Shah of Geojit Unveils Top Midcap Stock Picks for Investment During Market Crash

Gaurang Shah, Senior Vice President at Geojit Financial Services, has shared some midcap stock picks that he believes offer good entry points during the ongoing market correction. Here are the stocks he recommends:

Indian Hotels (CMP: Rs 376):

Rationale: Indian Hotels, a Tata Group company, is a leading player in the hospitality sector. It has shown strong revenue growth, particularly in the beginning of FY24. The G20 summit in September 2023 led to sold-out rooms, and upcoming events like weddings and the holiday season are expected to maintain high demand and occupancy levels.

The change in consumer travel habits, improved business travel, and recovery in foreign tourist arrivals are also expected to benefit the company.

Valuation-wise, it is trading at a lower PE multiple compared to some peers.

Ashok Leyland (CMP: Rs 166):

Rationale: Ashok Leyland is a prominent player in the commercial vehicle (CV) segment. It has a significant market share in the truck segment and has been gaining ground in the light commercial vehicle (LCV) segment.

The company is focusing on expanding its market share in various territories, expanding its dealer network, and launching new products. The stock has recently seen a decline, making it an attractive addition to a portfolio.

KPIT Technology (CMP: Rs 1,120):

Rationale: KPIT Technology specializes in supplying software services to automotive companies. It derives most of its revenue from the automotive business, and with the automotive industry investing in new technologies, KPIT is well-positioned for growth.

The company serves markets in Europe, the US, Japan, China, and India and has outperformed other midcap technology stocks in recent months. The stock has recently declined, presenting a long-term growth opportunity.

Cyient (CMP: Rs 1,604):

Rationale: Cyient is a company that focuses on engineering, manufacturing, data analytics, networks, and operations. It has consistently delivered strong financial performance, with robust growth in topline and profit.

The stock is trading at a relatively low PE multiple compared to its peers, and it has recently seen a significant decline, making it an attractive entry point.

KEC International (CMP: Rs 637):

Rationale: KEC International is a diversified capital goods engineering company with a significant presence in serving the Indian Railways. It is involved in power infrastructure development in various countries.

The company has a strong order book, and the momentum in power demand is expected to benefit all of its business verticals. The stock has potential for growth.

Please note that investing in the stock market carries risks, and it's essential to conduct your own research or consult with a financial advisor before making investment decisions. The stock market can be volatile, and past performance is not indicative of future results.