Recent dip - A buying opportunity?

Recently, we have seen lot of midcaps have started falling significantly, hence I believe it's a good buying opportunity for the long term investor at current point. Also, I am working on a new idea, and will be posted once I will confirmed all the aspects of the company. Meanwhile, the investors can look at the old recommendations to take call for their investments.

PNB Gilts - Future potential...

Company Profile - 

PNB Gilts was one of the first entities to be granted the primary dealership license by the RBI to deal in the Indian debt market. The company is a subsidiary of Punjab National Bank, and has played a pivotal role in strengthening of the domestic fixed income markets including retailing of government securities (g-secs). As a primary dealer, primary activities are supporting the government’s borrowing program via underwriting of government securities issuances and trading in a gamut of fixed-income instruments such as g-secs, treasury bills, state development loans, corporate bonds, interest-rate swaps and various money market instruments such as certificates of deposits, and commercial papers. 

Current Strengths- 

Its capital adequacy ratio stood at 49.14% end March 2014 as against the RBI-stipulated 15%. Income from operations rose 25% to Rs 87.76 crore in the quarter ended September 2014 over a year ago and in December it stood at 122 crores. It's net profit has shown a significant improvement by making it well above 70 crores which takes its EPS to close to 4 Rs. in first 9 months of current fiscal year.For the first time after many years, ideal conditions are getting evolved for a downtrend in interest rates over the next couple of years. This creates favourable conditions for a short-to medium term bullish g-sec and bond market, throwing up many trading and investment opportunities in the debt market. PNB Gilts is ideally placed to capitalise on these opportunities.The share price trades at Rs 33. With projected  EPS of this financial year of Rs 5.5, its trading currently at just 6 times. Since this favorable conditions are likely to continue for next fiscal year as well, we are seeing a potential re-rating in the stock once PNB Gilts starts posting handsome results. We expect PNB  Gilts to sustain it's profit margin through active trading in the markets in which they are operating. Hence, we are covering our positive look on the stock.