Top 5 Best Midcap Stocks for Investment

Top 5 best midcap stocks for investment 3 Top 5 Best Midcap Stocks for InvestmentMid-cap is the term that refers to the companies and stocks which fall in between the large-cap and small-cap companies. Midcap companies have a range of Rs.5,000 – 20,000 crore value. This categorization is wavering and can vary with the change in a company’s market value. The term Market Capitalization is determined with the aid of a company’s outstanding volume of shares and the value of each share. Nevertheless, these classifications are also subjected to the company’s rank in the benchmark indices such as Sensex and Nifty. The companies listed between 101st to 250th in the Nifty Index in India are known as the Nifty Midcap 50, which represents the top 50 most traded midcap stocks in the market.

Critical aspects for an investor to look at before adding midcaps to their portfolio are financial health, growth, management quality, competitive advantage, and high margin businesses. These are some of the criteria for an excellent mid-cap stock to invest in the market. However, there are few risks associated with mid-cap stocks, such as value trap, inadequate resources, and effects of a financial bubble. This article will cover some of the best mid-stock companies in India that are worthy of investing your money.

Crompton Greaves Consumer Electricals (CGCEL)

Crompton Greaves Consumer Electricals is the demerged consumer business of the company Crompton Greaves (CG). CGCEL is the unquestionable market leader in the fans segment and an intimidating branded player in the light consumer electrical market. After the demerger, the new management with broad experience in FMGC and consumer electrical space became in charge of the new entity to focus on premiumization and development. Recent promotor Advent brags about a long and trustworthy investment history in the consumption sectors. Advent has invested in almost 50 consumer products and industrial companies in India since 2007.

4 Top 5 Best Midcap Stocks for Investment

Escorts

Being one of the leading tractor manufacturers in the nation, Escorts is supported by an established dealer network, stimulating financial tie-ups, regular product launches/refreshes, and targeted marketing efforts. Escorts has an installed capacity of 120,000 tractors per year. The Agri-machinery division provides a vast collection of tractors, predominantly under the two brands, namely, Farmtrac and Powertrac. Throughout the past three fiscals, the Agri-machinery division of the company has set down a robust growth in profits and revenues, primarily benefited from an enhanced industry demand driven by beneficial farm sentiments. 

Relaxo Footwears

In the Indian non-leather footwear market, Relaxo Footwears is one of the most prominent players, with the promoters involved in the footwear business for over thirty years. Over the years, Relaxo Footwears has successfully broadened in new product categories, customer segments, and geographies. The company has nine plants across three cities with an aggregate manufacturing capacity of more than 20 crore pairs in a year. Relaxo Footwears has a pan-India network of distributors and retailers dispensing Relaxo products with more than 50,000 POS (Point Of Sales), resulting in a high geographical and customer diversification.

Risk Management Top 5 Best Midcap Stocks for Investment

Polycab India (PIL)

Amid the leading companies in the Indian cable and wire industry, Polycab India is the company with over 18% market share in the organized wires and cables market in FY19. The founder of this company has four decades of experience in this industry. The market position of Polycab India is accelerated through its robust distribution network of nearly 2,800 authorized dealers. The company has a remarkable market share in West and South India, contributing about 70% to the company’s revenue share. Polycab India is concentrating on expanding the network of the company to reach every district in the country. Moreover, the company has entered the electrical appliances segment by contributing around 10% to revenues and plan to grow worthy of attention over the medium term. 

Deepak Nitrite (DNL)

Deepak Nitrite is the Indian specialty chemicals industry, is one of the fastest-growing industries globally, delivering 13% of annual average growth over the last five years by reaching $25 billion. The company is expected to reap benefits from micro and macro factors in the future. Deepak Nitrite (DNL) is proficiently diversified with its presence across three segments are Basic Chemicals (BC), Fine and Specialty Chemicals (FSC), and Performance Products (PP). The company was established in the year 1970. It is one of the leading global players that serves a handful of industries-colorants, Agrochemicals, Petrochemicals, Rubber, Paper, Pharma, Etc. Deepak Nitrite is one of the topmost producers of various niche chemical products such as Cumidines, Xylidines, Oximes & Color intermediates.

Even though there are plenty of other mid-cap stocks in the market, the mid-caps mentioned above are some of the eye-catching companies to invest in the share market.

Register tradeplus Top 5 Best Midcap Stocks for Investment

Related Post

Add a Comment

Your email address will not be published.