Buy midcap stocks like KPIT Cummins, NIIT and Voltas on dips: Dipen Shah

In a chat with ET Now, Dipen Shah, Senior VP-PCG Research, Kotak Securities shares his views on midcap stocks. Excerpts:

ET Now: Give us a midcap idea, something that you are recommending or buying in your portfolio from a one year, one and a half year perspective.

Dipen Shah: As far as midcaps are concerned, we have two different segments, one is the highly valued sector or, the defensive sector comprising of IT, FMCG and so on. There, we do have stocks like KPIT Cummins, which we like. We also have NIIT Limited, which we believe should be accumulated at declines.

On the FMCG, or consumer side, we prefer Marico. On the other hand, in several of the beaten down sectors, where valuations are already at very low levels, we are looking for companies with strong balance sheets and credible managements and in those cases, companies like Voltas, Greaves Cotton, VA Tech Wabag and Cummins should be accumulated on every decline. So there are several midcap stocks which still provide good value and they can be accumulated at lower levels.