Free cash flow in any financial year is the amount of cash that is left with a business after they have accounted for all the cash generated from the operations and deduct all the capital expenditure(capex) of that year. And it includes all operating cash income and cash expenses.
Here are three Mid-cap multibagger stocks which have the Highest Free Cash Flow
UCO Bank:
United Commercial Bank(UCO) was ranked 80 on the Fortune India 500 list in 2020 and is engaged in providing a wide range of banking and financial services like Retail Banking, Corporate Banking, and Treasury Operations.
The company belongs to the mid-cap category with a market capitalization of Rs 31,803 crore. Shares were trading at Rs 26.65 a share on June 23, down 1.30 percent from the previous close price. The company has a free cash flow of Rs 2,694 crore for FY 22-23.
The stock has increased by 142 percent in the last year, giving a multibagger return from Rs 11.15 to the present price. Therefore, if an investor purchased 1 lakh company shares in the previous year, their holdings would now be worth 2.42 lakhs!
The company’s revenue increased by 18 percent yearly, from Rs 14,981 crore in FY 21-22 to Rs 17,650 crore in FY 22-23. Net profit has grown by 100 percent, from Rs 930 crore to Rs 1,862 crore.
Rail Vikas Nigam Ltd:
Rail Vikas Nigam Ltd is engaged in the business of implementing various types of Rail infrastructure projects across India.
The company belongs to the mid-cap category with a market capitalization of Rs 25,260 crore. Shares were trading at Rs 121.30 a share on June 23, down 1.74 percent from the previous close price. The company has a free cash flow of Rs 4,683 crores for FY 22-23.
The stock has increased by 307 percent in the last year, giving a multibagger return from Rs 30.10 to the present price. Therefore, if an investor purchased 1 lakh company shares in the previous year, their holdings would now be worth 4.07 lakhs!
Revenue climbed by 5 percent year on year, rising from Rs 19,381 crore in FY 21-22 to Rs 20,281 crore in FY 22-23. Net profit increased by 17 percent, from Rs 1,079 crore to Rs 1,261 crore.
IDFC First Bank Ltd:
IDFC First Bank Ltd is a leading infrastructure financing company primarily on project finance and mobilisation of capital for private sector infrastructure development as well as the bank works in treasury, wholesale banking, retail banking, and other banking business.
The company belongs to the mid-cap category with a market capitalization of Rs 51,877 crore. Shares were trading at Rs 78.50 a share on June 23, up 1.16 percent from the previous close price. The company has a free cash flow of Rs 2,197 crore for FY 22-23.
The stock has increased by 142 percent in the last year, giving a multibagger return from Rs 11.15 to the present price. Therefore, if an investor purchased 1 lakh company shares in the previous year, their holdings would now be worth 2.42 lakhs!
The company’s revenue increased by 32 percent yearly, from Rs 17,172 crore in FY 21-22 to Rs 22,727 crore in FY 22-23. Net profit has grown by 1780 percent, from Rs 132 crore to Rs 2,485 crore.
Written by Omkar C
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