Best Nifty Midcap 50 Stocks: Midcap stocks are the category of stocks that strikes the balance between stability and growth potential. This category is an attractive option for investors who are ready to take a minimum risk to earn good returns in the long term.
In this article on the best nifty midcap 50 stocks, we are going to see some of the best stocks in the nifty 50 midcap index. Without any further ado, let’s get started.
Best Nifty Midcap 50 Stocks
Midcap stocks refer to companies with a moderate market cap which typically fall in between small-cap stocks and large-cap stocks. In this article on the best nifty midcap 50 stocks let us look at the few top nifty midcap stocks and their financial performances. Keep reading to know more about the same!
Best Nifty Midcap 50 Stocks #1 – Mahindra and Mahindra Financial Services
Mahindra and Mahindra Financial Services Limited (MMFSL) is an Indian NBFC that was established in 1991 as Maxi Motors Financial Services Limited in Mumbai, India. Currently, it is amongst the top vehicle finance companies in India, primarily engaged in the business of vehicle financing.
The company is also into SME financing, which includes project finance, equipment finance, working capital finance, and many more services to SMEs. Additionally, the company undertakes mutual fund distribution, fixed deposits, and personal loan services.
With over 24,000 employees, Mahindra Finance has a presence in every state in India with 1380 plus branches across the country. The company has a growing customer base of over 4 million which is its biggest strength.
It is a Nifty 50 Midcap stock with a market cap of Rs 42,242 Crores. In FY23, the company saw its net profits increase by 80% to Rs 2,071 Crores from Rs 1,150 Crores in FY22. It was followed by an increase in revenue from Rs 11,317 Crores to Rs 12,699 Crores respectively from FY22 to FY23.
Furthermore, it has positive profit margins increasing YoY from the last 4 fiscals from 8.75% to 15.96%. The company also yields decent returns to its shareholders with a ROCE of 11.16% and an ROE of 41.15% for FY23. To sum up, it is a company with good fundamentals compared to its peers.
|CMP (In Rs)||319.75||Market Cap (in Rs crs)||39,085|
|EPS (in Rs)||16.7||Stock P/E||20.38|
|ROCE (in %)||41.15||ROE (In %)||11.16|
|Face Value (in Rs)||2||Book Value||150.22|
|Promoters Holding (in %)||52.16||Price to Book Value||2.28|
|Dividend Yield||1.76||Debt Equity Ratio||2.38|
|Net Profit Margin (%)||15.96||Operating Profit Margin (%)||62.29|
Best Nifty Midcap 50 Stocks #2 – Polycab India Limited
Polycab India Limited is the leading Cable and Wires manufacturer and seller in India which was incorporated in 1996. The company is mainly involved in the business of manufacturing and selling wires, cables, and FMCG Products such as electric fans, LED Luminaires, and solar products under the “POLYCAB” brand.
Being the market leader in the wires and cables segment, the company has a 24% share in the organized market. Polycab has expanded its outreach with over 2 lakh retail outlets and 25 manufacturing facilities across India.
Polycab India Ltd is also heading towards establishing itself in the international market by exporting its products to 70-plus countries in the world.
If we look at the financials of the company, Wires & Cables, FMCG Goods, and Other products constitute the product segment of the company. Out of these, Wires & Cables is the lucrative segment that contributes over 89% of the revenue to the company. Further, 9% of the revenue is from FMCG and 2% from Copper plus other products.
The company has a proven track record of sustainable financial growth with an increase in revenue CAGR of 15% and net profit CAGR of 27% in the last 5 years. Furthermore, the company reported an ROE of 19.2% and an ROCE of 25.9% for FY23.
It is a low-debt company with a debt-equity ratio of 0.02. The company reported the Profit After Tax (PAT) of Rs 1,282 Crores and Revenue of Rs 14,108 Crores for FY23. To wrap up it is a market leader in the cable segment with strong and sustainable fundamentals over the years.
|CMP (In Rs)||3,914.65||Market Cap (in Rs crs)||58,102|
|EPS (in Rs)||84.75||Stock P/E||41.57|
|ROCE (in %)||25.9||ROE (In %)||19.2|
|Face Value (in Rs)||10||Book Value||367.63|
|Promoters Holding (in %)||66.2||Price to Book Value||9.59|
|Dividend Yield||0.57||Debt Equity Ratio||0.02|
|Net Profit Margin (%)||9.15||Operating Profit Margin (%)||12.59|
Best Nifty Midcap 50 Stocks #3 – Gujarat Gas Limited (GGL)
Incorporated in 1980, Gujarat Gas Limited is a government company that is engaged in the business of distribution of natural gas in India. It is India’s largest City Gas Distributor (CGD) in terms of sales volume operating in 44 districts in 6 states and 1 Union territory in India.
GGL also holds the leadership position in the CGD industry in terms of size and scale of operation with around 18.90 lakh households, over 14,350 commercial customers, 800+ CNG stations, 4,365 industrial units, and more than 35,000 kilometers of the natural gas pipeline network.
The company has successfully commissioned the country’s first pilot project of blending green hydrogen with piped natural gas for domestic customers in collaboration with NTPC.
The company has been able to increase their revenue in the last five years from Rs 7,962.48 Crores in FY19 to Rs 17,306.16 Crore in FY23. In the period, their net profits have increased from Rs 417.03 Crores to Rs 1,525.47 Crore. It is a debt-free company with a deb to equity ration of 0.00.
|CMP (In Rs)||461.25||Market Cap (in Rs crs)||31,686|
|EPS (in Rs)||22.2||Stock P/E||21.38|
|ROCE (in %)||25.41||ROE (In %)||21.74|
|Face Value (in Rs)||2||Book Value||102.09|
|Promoters Holding (in %)||60.89||Price to Book Value||4.65|
|Dividend Yield||1.4||Debt Equity Ratio||0|
|Net Profit Margin (%)||8.81||Operating Profit Margin (%)||14.41|
Best Nifty Midcap 50 Stocks #4 – TVS Motor Company
TVS Motor Company, popularly known as TVS is a nostalgic brand name in the Indian Households. Incorporated in 1978, TVS Motors began its operations by manufacturing two-wheelers and their accessories. It currently stands as the 3rd largest two-wheeler manufacturer in India.
It manufactures scooters, motorcycles, mopeds, electric scooters as well as three-wheelers. The company has four manufacturing plants, three located in India (Hosur in Tamil Nadu, Mysore in Karnataka, and Nalagarh in Himachal Pradesh) and one in Indonesia at Karawang.
With an annual production capacity of over 4.95 Million two-wheelers and 120,000 three-wheelers, the company has generated a consolidated revenue of Rs 31,970 Crore for FY 22-23. Along with this, it has footprints globally including the Middle East, Africa, SE Asia, Indian Subcontinent, Latin & Central America.
If we look at the financials of the company, we see that the revenues have increased from Rs 20,790.51 Crores in FY22 to Rs 26,378.09 Crores in FY23. In the period, their net profits have also increased from Rs 893.56 Crores to Rs 1,491.03 Crores.
The company reported an ROE of 24.13% and a ROCE of 20.89% for FY23. Although the company has a higher debt ratio of 3.93, the increasing profit margins and reserves can compensate for the increased debts. In short, the company has performed well over the last 5 years and has a strong brand value within its segment.
|CMP (In Rs)||1,342||Market Cap (in Rs crs)||64,079|
|EPS (in Rs)||27.97||Stock P/E||46.96|
|ROCE (in %)||20.89||ROE (In %)||24.13|
|Face Value (in Rs)||1||Book Value||115.87|
|Promoters Holding (in %)||50.27||Price to Book Value||11.34|
|Dividend Yield||0.38||Debt Equity Ratio||3.93|
|Net Profit Margin (%)||5.65||Operating Profit Margin (%)||10.52|
Best Nifty Midcap 50 Stocks #5 – IDFC First Bank
IDFC First is an Indian Private bank that was formed by the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018. The bank offers a wide bouquet of products for all kinds of customers including individuals, MSMEs, and Corporates.
It renders services like home loans, micro business loans, working capital loans, and many more. With a customer base of over 7.3 million and growing, IDFC First has a significant market share within the segment.
The net profits of the bank have increased by a whopping 1575% from Rs 145 Crore in FY22 to Rs 2,437 Crore in FY23. The earnings from interest have also increased from Rs 9,706 Crore to Rs 12,635 Crore in the period.
Most importantly, the ratio of Net Non-Performing Assets (NNPA) has reduced from 1.53% to 0.86% which is a positive sign that indicates the financial strength of the bank.
The ROA has grown from 0.08% to 1.13% and ROE from 0.75% to 10.95% from FY22 to FY23. Overall, within a span of 5 years after emerging as a new entity it has grown at a very fast pace, indicating growth potential in the future.
|CMP (In Rs)||81.8||Market Cap (in Rs crs)||54,669|
|EPS (in Rs)||3.75||Stock P/E||21|
|ROCE (in %)||2.19||ROE (In %)||10.95|
|Face Value (in Rs)||10||Book Value||29.72|
|Promoters Holding (in %)||39.99||Price to Book Value||2.65|
|Dividend Yield||-||CASA Ratio (%)||49.77|
|Net Profit Margin (%)||10.93||Operating Profit Margin (%)||-8.72|
List Of Top Nifty Midcap 50 Stocks
|Company Name||CMP (In Rs)||Market Cap (In Rs Crores)|
|Mahindra and Mahindra Financial Services Limited||319.75||39,085|
|Polycab India Limited||3,914.65||58,102|
|Gujarat Gas Limited||461.25||31,686|
|TVS Motor Company||1,342.95||64,079|
|IDFC First Bank||81.7||54,669|
|Power Finance Corporation||223.4||59,309|
|Container Corporation Of India Limited||684.7||40,448|
|Indian Hotels Company Ltd||390.1||55,296|
In this article on the best Nifty Midcap 50 Stocks, we discussed the significance of Midcap stocks in detail. We also looked at the best nifty midcap 50 stocks and their financial performance.
Although midcap stocks are less risky, they are not entirely risk-free in nature. Hence as a cautious investor, one must research in detail before investing the money.
That’s it for this post, do let us know what you think about investing in the midcap stocks in the comments section below!
Written by Bhagyalakshmi Patil
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.
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