The CNX Midcap Index has rallied by 25% YTD amidst a broader market recovery and has outperformed the Sensex by over 13% YTD. This performance has been led mainly by relatively cyclical sectors like financials and industrials.
Valuations of Indian Midcaps
The PE discount of the CNX Midcap to the Sensex is currently at ~13% - below the long term average of 20%+. This Stock Selection has now moved to selective approach in midcap stocks as is warranted with a focus on earnings visibility.
Some of the Midcaps that will OUTPERFORM are as follows
GSK Consumer Target of Rs 3200
Apollo Tyres
Oberoi Realty Target of 325
Sobha Developers Target of 400
Balrampur Chini Target Rs 70
Dish TV 75
HT Media Rs 158
Indusind Bank Rs 415
Yes Bank Rs 445
eClerx Rs 880
IPCA Labs Rs 400
Midcaps expected to UNDEPERFORM are as Follows
Marico
United Spirits
United Breweries
Shree Cement
India Cements
Bharat Forge
