Prefer Tree House Education on declines in the midcap space: Mayuresh Joshi, Angel Broking

In a chat with ET Now, Mayuresh Joshi – Fund Manager, Angel Broking, shares his view on investment ideas.

ET Now: Your high conviction investment ideas, name us top three?

Mayuresh Joshi: So, clearly we still continue with the same theme of private sector banks, IT companies. We are very selective when it comes to the midcap universe so we like Tree House Education at this juncture in that space. Clearly, it has got asset light model, the kind of top line growth that one expects over the next two years can be quite stupendous, 25% in our opinion. The EBITDA margin expansion should also be quite significant because of their expansion to tier two, tier three cities with lower rental cost and expansion, it seem probably in terms of the QIP raised reduction of debt, improved cash flows that all these factors should augur well for the stock. So, Tree House education is something that we are liking probably on declines at the current juncture.