In June 2014, Edelweiss released a report on 7 “Midcap Marvels” stocks. In just the 4 months since then, the 7 stocks have delivered an absolute return of 38% which translates into an annualized return of 114%. This heavily outperforms the CNX Midcap return of 7% for 4 months and 21% annualized.
Today, 1st October, Edelweiss has issued an update pointing out that the potential of the said 7 stocks remains intact and that they are still a good buy. Edelweiss has stated that it believes that these stocks could be multi-baggers in the long run and should be held by investors with an investment horizon of 1-2 years.
A detailed explanation of each stock is also given.
| Stock Name | CMP | PE | EV/EBITDA | ROE (%) | |
| (INR) |
FY15E |
FY15E |
FY15E |
||
| Can Fin Homes Ltd |
427 |
9.3 | NM | 19.3 | |
| Cholamandalam Finance |
496 |
15.4 |
NM |
16.5 |
|
| Kewal Kiran Clothing |
1,860 |
26.8 |
17.1 |
25.0 |
|
| Mayur Uniquoters Ltd |
448 |
25.4 |
15 |
32.3 |
|
| Natco Pharma |
1,454 |
35.9 |
21.9 |
14.6 |
|
| Ratnamani Metals & Tubes |
429 |
11.4 |
6.6 |
20.8 |
|
| WABCO India Ltd |
3,881 |
50.9 |
31.3 |
17.0 |
Why has their own stock plumented