Top Mid-Cap Stocks in India: Many investors prefer mid-cap stocks over large-cap companies in the hope of higher returns. Against only 100 large companies, the recent AMFI classification lists out 150 mid-cap companies in India. How do you go about picking the best ones from such a large pool? Well, in this article we’ll get you a list of the top mid-cap stocks in India which you can add to your watchlist.
Top Mid-Cap Stocks In India
In this article, we shall be talking about the business models, recent developments, and a few financial metrics of mid-cap companies. Later, we present a table that includes more such companies. So without further ado, let us jump in.
Top Mid-Cap Stocks in India #1 – Tube Investments of India
| CMP | ₹2,415 | Market Cap (Cr.) | ₹46,500 |
| EPS | ₹42.6 | Stock P/E | 57.7 |
| RoCE | 29.4% | RoE | 28.1% |
| Promoter Holding | 46.4% | Book Value | ₹178 |
| Debt to Equity | 0.26 | Price to Book Value | 13.50 |
| Net Profit Margin | 7.8% | Operating Profit Margin | 16.6% |
Part of the fertilizers to cycles conglomerate Murugappa Group, Tube Investments of India is a diversified company with varied business interests. It was incorporated in 1949 as TI Cycles of India Ltd. It is one of the favorite mid-cap stocks of mid-cap and growth-oriented mutual funds.
The company manufactures a broad range of consumer and industrial products such as cycles, power generation, transmission, & distribution products, forging, welding, & other industrial equipment, EVs, and auto-ancillary products.
Tube Investments has ramped up its expansion in the e-mobility space with a series of acquisitions and investments. It recently acquired the entire stake in the Celestial E-Mobility, an electric tractors startup. The company made another small stake purchase in X2Fuels and Energy, an early-stage thermochemical technology startup.
Before this, the holding company had acquired a controlling stake in the troubled CG Power and Industrial Solutions. Now the subsidiary is eying large railway projects like Vande Bharat in joint ventures.
Tube Investments’ consolidated revenues doubled to Rs 12,525 crore in FY22 from Rs 6,083 crore in FY21 after the inclusion of CG Power’s earnings. It is a low-debt stock with high RoCE and RoE of 29.4% and 28.1% respectively.
Top Mid-Cap Stocks in India #2 – Polycab India
| CMP | ₹3,000 | Market Cap (Cr.) | ₹44,500 |
| EPS | ₹78.0 | Stock P/E | 38.1 |
| RoCE | 22.50% | RoE | 17.30% |
| Promoter Holding | 66.6% | Book Value | ₹390 |
| Debt to Equity | 0.02 | Price to Book Value | 7.59 |
| Net Profit Margin | 7.4% | Operating Profit Margin | 10.4% |
Polycab India Ltd. (formerly Polycab Wires Ltd.) is India’s largest manufacturer of wires, cables, and fast-moving electrical goods (FMEG). It traces its origins back to 1964 when promoters jointly set up a manufacturing facility at the Halol plant.
Since then it has grown to capture a leading 22-24% market share in the organized cables market in India. It has a vast network of more than 4,600 dealers and distributors. The company has 25 facilities across 5 locations with strong backward integration.
As for the revenue segments, Polycab’s wires & cables division accounted for 87% of the total Rs 12,204 crore income in FY22. The FMEG segment and copper & EPC segment brought 10% and 3% revenue respectively. The management is particularly bullish on switch and switchgear in the FMEG segment now.
The company plans to touch sales of Rs 20,000 crore by FY26. Polycab invested Rs 527 crore towards expansion in FY22. In past, the topline grew at a CAGR of 12.5% every year from Rs 6,770 crore in FY18 to Rs 12,204 crore in FY22.
Polycab is a debt-free stock with a high promoter holding of 66.6%. Additionally, it has high return ratios with RoCE and RoE at 22.50% and 17.30% respectively.
Top Mid-Cap Stocks in India #3 – Indian Hotels Company
| CMP | ₹313 | Market Cap (Cr.) | ₹44,500 |
| EPS | ₹5.3 | Stock P/E | 61.2 |
| RoCE | 1.2% | RoE | -5.5% |
| Promoter Holding | 38.2% | Book Value | ₹51 |
| Debt to Equity | 0.38 | Price to Book Value | 6.21 |
| Net Profit Margin | -10.2% | Operating Profit Margin | 13.2% |
Incorporated in 1899 by Mr. Jamsetji Tata, Indian Hotels Company Limited (IHCL) is the hospitality arm of the salt-to-software Tata Group. The company is the largest hospitality enterprise in South Asia with Indian origins.
It runs hotels, resorts, and homestays under its various brands: Taj, SeleQtions, Vivanta, Ginger, and amã Stays & Trails. It has a large portfolio of 28,650+ keys in 240 hotels across different segments.
IHCL has properties across all of India. It also has an international presence with hotels in UAE, South Africa, Bhutan, Sri Lanka, Maldives, the US, and a few other countries.
IHCL also runs 43 spas, 15 boutiques, 34 salons, 380 restaurants and bars, a culinary & food delivery platform, an exclusive business club worldwide, and TajSATS, an air catering service in a joint venture with SATS, a Singaporean airport service company.
The company has come out of the pandemic blues with its TTM revenues and net profit at Rs 5,057 crore and Rs 786 crore after the December 2022 quarter results. This is much better than Rs 3,056 crore revenues and a loss of Rs 265 crore in FY22.
Top Mid-Cap Stocks in India #4 – IDFC First Bank
| CMP | ₹57 | Market Cap (Cr.) | ₹35,500 |
| EPS | ₹3.3 | Stock P/E | 17.6 |
| RoCE | 4.6% | RoE | 0.7% |
| Book Value | ₹33.9 | Price to Book Value | 1.69 |
| GNPA | 2.96% | NNPA | 1.03% |
| CASA Ratio | 50% | Capital Adequacy | 16.06% |
| Promoter Holding | 36.4% | PCR | 76.60% |
IDFC FIRST Bank came into the existence after the merger of erstwhile IDFC Bank and erstwhile Capital First in December 2018. Incorporated in 1997, IDFC had a key presence in corporate banking. Founded by Mr. Vaidyanathan, Capital First had a strong retail presence and was looking for a banking license to become a bank.
The merger was beneficial for both companies as it resulted in a diversified loan book amid India’s fast-changing economic landscape. As of the present date, IDFC First bank is a universal bank with a diversified loan book. It offers a portfolio of services including personal loans, credit cards, education loans, working capital loans, and more.
It has emerged as a leading tech-driven bank with a broad customer base of more than 7.3 million and growing.
As of the quarter ending December 2022, its CASA ratio stood at 50%. It’s GNPA and NNPA improved to 2.96% and 1.03% respectively.
It has a well-diversified lending portfolio with more than 20 business lines. The bank has a strong capital adequacy ratio of 16.06%.
Its earnings have been volatile after the merger but there are green shoots visible with improving returns and stellar profits of Rs 485 crore, Rs 567 crore, and Rs 617 crore in the first three quarters of FY 2022-23.
Top Mid-Cap Stocks in India #5 – Metro Brands
| CMP | ₹830 | Market Cap (Cr.) | ₹22,500 |
| EPS | ₹13.3 | Stock P/E | 62.2 |
| RoCE | 19.9% | RoE | 20.2% |
| Promoter Holding | 74.2% | Book Value | ₹53 |
| Debt to Equity | 0.56 | Price to Book Value | 15.80 |
| Net Profit Margin | 15.9% | Operating Profit Margin | 30.7% |
Metro Brands Ltd. (MBL) is one of the largest footwear specialty retailers in India. It started in 1995 with a single store and currently operates 720 stores across 142 cities in the country.
It retails footwear across all sub-segments (casual, party-wear, wedding, formal, and sportswear) and price-positioning (from under Rs 500 to more than Rs 3,000 as well).
Metro, Mochi, Da Vinchi, J. Fontini, and Walkway are powerful in-house brands of MBL. Additionally, it is a seller of third-party brands such as Crocs, Fitflop, Skechers, and Clarks. In-house brands accounted for 73% of the revenues of the company in the latest fiscal.
It had 178 exclusive brand outlets (EBOs) of Crocs, 162 multi-brand outlets (MBOs) of Mochi, and 231 MBOs of Metro at the end of FY22.
The company raised Rs 295 crore of fresh capital in its IPO in December 2021 which it has utilized for new store openings. Since its listing, the stock has generated an impressive 77% return for its investors.
MBL is a highly profitable business with a return on equity of 20.2%. Additionally, it has a high promoter holding of 74.20%. The retailer reported the highest-ever annual sales of Rs 1,343 core in FY22. Its TTM revenue stood higher at Rs 1,986 crore after the December 2022 quarter results.
List of Top Mid-Cap Stocks in India
The table below presents more such top mid-cap stocks in India.
| Company Name | Industry | CMP (Rs) | Market Cap (Rs Cr) |
|---|---|---|---|
| Tube Investments of India | Diversified | 2,415 | 46,500 |
| Polycab India | Cables | 3,000 | 45,000 |
| Indian Hotels Company | Hospitality | 313 | 44,500 |
| IDFC First Bank | Banking | 57 | 35,500 |
| Metro Brands | Footwear | 830 | 22,500 |
| Ashok Leyland | Automobile | 150 | 44,000 |
| Jubilant Foodworks | QSR | 454 | 30,000 |
| UNO Minda | Auto Ancillary | 509 | 29,000 |
| Deepak Nitrite | Chemicals | 1,788 | 24,500 |
| Syngene International | Life Sciences Services | 567 | 23,000 |
In Conclusion
It is believed that small and mid-sized companies can grow their revenues faster than large companies. The prospects of higher returns attract more investors. However, in a bear market, small-cap and mid-cap stocks fall harder. Thus, higher prospects always bring higher volatility and risks.
Investors’ allocation to the smaller companies should be limited to the extent of research and the volatility they can bear. In your opinion, what are other factors one must consider while purchasing small-cap and mid-cap stocks? How about you let us know in the comments below?
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