The broader market has cracked decisively on the back of weak macro indicators, monetary tightening by RBI, dwindling earnings growth and more so due to huge pessimism among market participants. The correction was more severe in midcaps as compared to large caps. CNX Midcap index has corrected almost 21% ytd vs ~6% of Nifty. Even in largecaps, the outperformance was confined to few stocks. We believe this correction throws an opportunity to identify stocks having strong earnings visibility over the medium term, compelling valuations, strong cashflows and no corporate governance issues. In this series we have identified seven stock ideas which we believe should deliver strong outperformance in the medium term.
1. Berger Paints
2. Cadila Healthcare
3. Federal Bank
4. GMDC
5. NMDC
6. Unichem Laboratories
7. Yes Bank
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