Here are the Top 5 MidCap picks of CLSA in India along with a brief note,
IndusInd Bank - Loan growth to be healthy at 26% Cagr over FY12-15; correction in interest rates should be positive for margins. Valuations premium will be supported by healthy earnings growth and improvement in Casa ratio. Strong quality of management underpins valuations of 2.9x FY 14 PB
Havells India - Havells is a leading brand in the electricals market in India and also has operations in the European and Lat-Am markets through Sylvania. Havells will see its earnings grow at a 27% car over FY12-14, led primarily by strong growth in India. Alongside this, it will see consistent FCF generation and rising dividends, creating room for a rerating from 16x FY13 PE
IPCA Labs From a low base, domestic formulations growth rate is set to be higher than market average in FY13. We expect rebound in most of divisions including anti-infectives. At 12x FY14 EPS, IPCA trades at attractive valuations
Apollo Tyres Moderation in rubber prices alongside incremental improvements in the demand environment are driving margin expansion in India Improving balance sheet and 29% earnings CAGR over FY12-14 at odds with the undemanding 8x FY13 PE and create room for a rerating . While the pending fund raise presents worries, the upcoming results should be strong and present better exit opportunities.
