Buy Mid- & Small-caps Now: Morgan Stanley

Tuesday 12th February, 2019

Article Details
Publication  The Economic Times
Source  Bureau
CCM  36.07
Edition  Ahmedabad | Bangalore | Kolkata | Mumbai | New Delhi
Supplement   NA
MAV  99,553
Language  English
Page  7
Circulation  38,331

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BREADTH INDICATORS ARE IN BUY TERRITORY'
Buy Mid- & Small-caps Now: Morgan Stanley
Performance gap between benchmarks and broad market likely to narrow down, says brokerage
Our Bureau
Mumbai: Morgan Stanley believes that it is time for investors to start looking at stocks in the broader market given the relative damage they have suffered.
The broad market is likely to play catch up in the coming months, and the wide performance gap between the benchmarks and the broad market is likely to come down with the broad market rising rather than Nifty falling, said Morgan Stanley.
"The performance gap between narrow and broad market is close to all-time peaks. Valuations have nothit all-time lows, but significant de-rating has happened. The bid has vanished and breadth indicators are in buy territory" said Morgan Stanley The BSE MidCap and SmallCap indices have fallen 16% and 27% in the last one year while the benchmark Sensex has gained 6% during the period. Indraprastha Gas, Indian Hotels, Cyient, Ipca Laboratories, Just Dial, Amara Raja Batteries, Apollo Hospitals, Edelweiss Financial, Jubilant FoodWorks, Oberoi Realty and Prestige Estates are among the top mid-cap ideas of Morgan Stanley All these stocks are rated overweight by Morgan Stanley. These stocks fit the description of growth at a reasonable price. They will bring positive change in return on capital in the coming two years, strong earnings growth and reasonable valuations, the firm said.
Top Picks
Company NameCMP In?X ChC in last 1 Year
Jubilant FoodWorks1318.830.1
Ipca Laboratories730.114.1
Just Dial467.9-1.1
Indian Hotels Co135.4-2.1
Apollo Hospitals1125.0-2.6
Oberoi Realty440.2-4.9
Cyient587.8-6.1
Indraprastha Gas273.9-9.4
Amara Raja Batteries739.7-12.5
Prestige Estates200.8-35.6
Edelweiss Financial134.8-47.9
Compiled by: ETIG Database