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Ultimate Midcap Investment: 10 Stocks To Buy The Election Outcome!

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midcap investment

Discover the ultimate midcap investment opportunities! Explore MOSL’s top 10 stock picks, including Indian Hotels, Cello World, Sobha, and more, poised for growth ahead of the Indian general election outcome.

As we approach the Indian general elections, the stock market’s volatility is peaking, creating unique opportunities for astute investors. Renowned brokerage firm Motilal Oswal (MOSL) has identified 10 midcap stocks with substantial growth potential, making them prime candidates for your investment portfolio. Let’s explore each of these promising picks and understand why they deserve your attention.

Indian Hotels: A Hospitality Giant on the Rise

Target Price: ₹680
Potential Upside: 19%

Indian Hotels Company Limited (IHCL) is poised to maintain its robust performance into FY25. Key drivers include:

  1. Rising ARR: Average Room Rates (ARR) are increasing.
  2. High Occupancy: Favorable demand-supply dynamics are sustaining high occupancy levels.
  3. Expansion Plans: A strong pipeline with 2,779 rooms in owned/leased and 10,174 in managed hotels expected by FY28.
  4. Management Income: Higher revenue from management contracts.
  5. Brand Expansion: Value unlocking by scaling up reimagined and new brands.

IHCL plans to open approximately 25 hotels in FY25 and anticipates double-digit revenue growth, with new businesses projected to grow by 30%.

Godrej Properties: Real Estate’s Reliable Performer

Target Price: ₹3,000
Potential Upside: 5%

Godrej Properties Limited (GPL) has achieved 84% YoY growth in bookings, driven by successful new launches in NCR and Mumbai. Highlights include:

  • Consistent Growth: Management aims for sustained 20% growth over the medium term.
  • Extensive Launch Pipeline: New projects worth ₹30,000 crore planned for FY25.
  • Strong Fundamentals: GPL’s robust pipeline and healthy realizations address key investor concerns.

Sobha: Unlocking Value from Vast Land Reserves

Target Price: Undisclosed
Growth Potential: Strong

Sobha Limited’s focus on unlocking its 200msf land reserve and exploring external growth opportunities positions it for significant growth:

  • Launch Pipeline: 15msf of launches planned, with 3-4msf already launched in 3QFY24.
  • Long-Term Strategy: Targeting 30-40msf of projects over the next 3-4 years.
  • Sustainable Growth: Aiming for a 25% CAGR in pre-sales to ₹100 billion through FY23-26.

JK Cement: Cementing Success with Strategic Expansions

Target Price: Undisclosed
Growth Potential: Robust

JK Cement has demonstrated exceptional project execution and marketing strategies:

  • Market Expansion: Expanded dealership network and tapped into new markets.
  • High Utilization: Achieved 90% capacity utilization within a year at its new Panna plant.
  • Future Projections: Expecting RoE/RoCE to improve significantly by FY26.

KEI Industries: Electrifying Growth Prospects

Target Price: ₹5,000
Potential Upside: 17.6%

KEI Industries is set to capitalize on the growing cables and wires market, estimated at ₹75,000 crore:

  • Product Diversification: Recently added EV charging cables.
  • Expansion Plans: Aggressive network growth in South and East India.
  • Financial Projections: EBITDA and EPS expected to grow at a CAGR of 27% and 25% respectively over FY24-26.

Cello World: Leading the Charge in Consumer Products

Target Price: ₹1,100
Potential Upside: 19%

Cello World is leveraging its strong brand and distribution network:

  • Market Leadership: Competing effectively in the consumer glassware segment.
  • Growth Strategy: Aiming for a revenue CAGR of 18% over FY23-26.
  • Margin Improvement: Targeting 26% margins by FY26.

PNB Housing Finance: Positioned for a Turnaround

Target Price: ₹1,015
Potential Upside: 36.5%

PNB Housing Finance (PNBHF) is poised for significant gains:

  • NIM Improvement: Potential decline in borrowing costs.
  • Asset Quality: Improved asset quality and upgraded credit rating to AA+.
  • Growth Projections: Aiming for a 17%+ retail loan CAGR from FY25 onwards.

Lemon Tree: Blossoming in the Hospitality Sector

Target Price: ₹170
Potential Upside: 19.5%

Lemon Tree Hotels is expanding its managed room portfolio:

  • Pipeline: 3,354 managed rooms expected by FY27.
  • Key Projects: Aurika Sky City Mumbai to drive significant revenue.
  • Financial Growth: Expected CAGR of 21% in revenue over FY23-26.

Global Health: Expanding Healthcare Footprint

Target Price: Undisclosed
Growth Potential: Promising

Global Health, known for Medanta, is focusing on expansion:

  • New JV: Developing a 400-bed super specialty hospital in Delhi.
  • Capacity Increase: Bed count to rise to 2,400 in NCR.
  • Growth Prospects: 14% sales CAGR in healthcare services expected over FY24-26.

Kirloskar Oil Engines: Powering Ahead with Strong Demand

Target Price: ₹1,220
Potential Upside: 1.2%

Kirloskar Oil Engines (KOEL) is set to benefit from strong demand across segments:

  • Product Mix: Improved product mix and higher export sales.
  • Financial Outlook: Revenue/PAT CAGR of 18%/33% over FY24-26.


Conclusion: Seize the Opportunity

Despite current market volatility, these midcap stocks present compelling investment opportunities. MOSL’s recommendations are backed by strong growth fundamentals and strategic expansions, making them ideal for long-term investors looking to capitalize on market dips ahead of the general election outcome.

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Disclaimer: The opinions and suggestions presented in this analysis represent the viewpoints of individual analysts or brokerage firms, and not insightmediahub.com We highly recommend that investors seek guidance from certified experts before making any investment decisions, as market conditions are subject to rapid changes and individual circumstances may differ.

Motilal Oswal, General Election, Market Volatility, Long-term Investment.

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