Prefer KEC International, Trident: Deepak Shenoy

Deepak Shenoy of capitalmind.in told CNBC-TV18, "We are quite interested in certain midcaps. There are couple of companies that seem to be showing better activity or sort of turned around. There is KEC International which is a power transmission player, they do cabling, they do solar EPC and a couple of other spaces. They do a lot of contracts with the railways and abroad as well. We are expecting a pretty big jump in profits there. So, given that, power production has gone up, transmission hasn’t come up to steam, a lot more of the transmission projects will come across in the next few years. So, that may be a space worth looking at." 

"Sterlite Technologies which is one of the players in it, but the company that does it is now unlisted. There is also KEC International which has gone up quite a bit today but it is a play that we have been focusing on recently. Also a couple of companies in the textile space, there is Trident which was also gone up quite a bit in recent times, a fairly low P/E but a stock that seems to be showing a lot of promise both on the technical and on the fundamentals. They are in the sort of same space as Welspun India is, they make towels and bunch of other stuff. So, these are interesting players in the midcap space," he said.

"Overall, though I think you have to be stock specific, I think the broad midcap market is terribly overvalued and you have to make your picks carefully. There are some stocks trading at 60-65 P/E which may not necessarily end the year at the same kind of P/E."