Previously I wrote about some large cap scripts I would prefer to accumulate during the panic. Here are some mid-cap and small cap scrips which I am accumulating. It is somewhat easy to analysis and rely upon large/ blue chip companies, but with mid-cap and small-cap it is quite difficult. And I heavily rely upon for Equitymaster’s recommendations for such scrips.
Equitymaster has always been valuation-based and reasonable in their predictions. However, during the bull market their some of their predictions was known for achieving target within a week. But now things are different and Equitymaster and Ajit Dayal seem right in their approach.
Equitymaster has posted their review on 01-10-2008 about most of their all recommendation and they are firm and positive about the future. Followings are some of Equitymaster recommendations I am watching/ accumulating.
MID CAP (about 2 years target)
Jagran Prakashan : It was recommended in 91, now it near 71, and target is given of 120 for 2010.
Paper Product : Recommended at 51 , now 38 with target of 83 for year 2010. Good dividend yield as well.
Praj Industries : Recommended at 180, now around 126 with target of 250.
Gujarat Industrial Petro. (GIPCL) : Recommended at 60, now around 60 with target of 120. Good dividend as well. However, recent announcement of Gujarat Government about donating 30-40 % of profit of state run government companies is dampening factor.
No doubt small caps have much potential to grow and therefore Warren Buffet is also like small companies. However, investment in small companies is highly risky, and small caps run once in a decade for cats- and-dogs as it happened in last bull run (RNRL, TTML etc.), so don’t expect that kind of return in short period. These recommendations have target period of at least of 4 years.
Parekh Alumniex (PARAL) : Recommended in 175, now around 100 with target of 595.
Srei Infra Finance : Recommended in 150, now around 60, with target of 450.
Compact Disc India (CDI) : Recommended in 82 , now around 39 with target of 320.
Ashai Songwon : Recommended in 39, now around 30, with target of 200.
Karuturi Global : Recommended in 23, now around 9, with target of 55. Still has somewhat high PE
Elgi Equipments : Recommended in 44, now around 41, with target of 154.