Midcap and Small Cap Stock Ideas

As always the focus remains on studying midcaps and small caps and currently it seems a good time as the activity has started in the segment finally after a year !!

I would just be putting a stock Name a couple of Cues and would leave it to the readers to add more research. Mind you these are not buy or sell recommendations so we dont need price targets or criticism about the stock/management etc. This is an exercise to inculcate the idea of Researching before Investing as majority of Investors first buy a stock and then research on it.

1) 3i Infotech ——-  CMP 16.2

Market Cap of 310 crores. Revenues of 2500 odd crores. But the major concern is debts of 2000-2500 crores. Will it turnaround with CDR or die a slow death?

2) Aarti Inds  —- CMP 48.85

Div yield of 5%. Book Value of 65 +. P – E of 6. Debts of 550 cr. Looks pretty interesting on the numbers but does the business have that potential.

3) Allsec Technologies — CMP 11.15

Current Market Cap of 17 cr.

At one point of time First Carlyle Ventures had an open offer to buy at 260. The stock also went to 370 + levels in 2007. Marquee names in the shareholding pattern have 48% holding:). Ashish Dhawan is one with 7% holding. Will the company ever revive ? its quoting at less then 5% of its peak value.

Even if its not an Investment it definitely is a great study of Where not to INVEST

4) B L Kashyap & Sons —- CMP 11.6

Market Cap of 246 crores. A provident fund evasion led to a suit of 590 crores . Good enough debts, promoter holding pledged and the concerns just continue. But there seems to be an entry of some domestic funds like ICICI Prudential Discovery Fund and an exit of many of the funds which bought the stock at superbly high levels

5) Balmer Lawrie — CMP 507

Majority of the fundamental analysts love this company as a defensive bet at particular price levels. Currently it quotes at a div yield of 5% and p-e of less then 7.

I would personally suggest this stock at 500-420 levels to be accumulated but please do your own research.

6)Balrampur Chini — CMP 40.2

This could be the most interesting bet to play if one is looking at the sugar cycle. Read this well written post by Neeraj –

One of the reasons to look into the stock is the company did a buy back of 9% of equity at a price of 71 rs in July 2011. Maybe they got the timing wrong with Mayawati and the government. But is definitely worth a watch as in the next cycle this would be very well placed.

7) Bartonics

Not at all a buy call. This was one of the example shown to me by a good fundamental analyst as to how companies keep showing great profit nos on accounting but hiding them in the sundry debtors. A must case study for all

BF Utility — CMP 364

The NICE corridor had P-E arms waiting to dole out a lot of cash and still the potential remains it seems. ( I have not looked into details but have a technical buy call initiated fro 315 levels for 380 + targets and we have been initiating day calls on the stock for last few days. Technically the stock seems to have turned around for long term.  )

9) BOC India  —- CMP 309

This is yet another defensive pick which can be a good delisting candidate. Disclosure: Have had a buy view since long at 310-270 levels:) waiting patiently. Expect delisting offer at 400-450 whenever it comes. Also the shareholding suggests the offer can go ahead this time.

10) Bombay Burmah Trading Corporation — CMP 396

Had earlier covered at 400-450  and saw a 50% jump quickly. The holding value is huge check detailed post here. With yesterdays runup in Bombay Dyeing the stock looks pretty interesting. If somebody has a view of 3-5 years one may definitely look into this stock. Holding value should be 1500-2000 crores. Current market cap at 550 crores. So downside could be limited over the long run.

In the same breadth i would mention about Bombay Dyeing — where insiders have been continously buying at 330-360 levels and has given a technical breakout yesterday.

So today we have covered stocks with the alphabets A-B and we still have space till Z. Definitely we do have a lot of work and opportunities.

 source :nooreshtech