Fundamentally strong companies possess strong financials, such as a low debt-to-equity ratio, considerable profit growth, and consistent cash flow. Such companies are more likely to endure and emerge stronger from market downturns.
In the Indian stock market, mid-cap companies are defined as those with a market capitalization between Rs27,600 crore and Rs84,300 crore.
Listed below are three such Fundamentally Strong Mid-Cap stocks with Promoter Holding of more than 70%
L&T Technology Services Ltd
L&T Technology Services Ltd offers engineering, research and development (ER&D), and digitalization solutions to companies in areas such as Transportation, Industrial Products, Telecom and Hi-Tech, Medical Devices, and Plant Engineering.
L&T Technology Services Ltd is a mid-cap company with a market capitalization of Rs60,962 crore. On Monday, its shares opened Rs 5,756.90 each, up 0.8% from the previous close.
According to the recent shareholding pattern, company promoters hold a 73.69% stake, Foreign Institutional Investors (FIIs) hold a 4.46% stake, and Domestic Institutional Investors(DIIs) hold a 13.07% stake.
The company’s revenue increased by 9.7% year-on-year, from Rs 7,910 crore in FY23 to Rs 8,679 crore in FY24. Net profit also saw a 9.1% rise, growing from Rs 1,153 crore to Rs1,258 crore during the same period.
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In the recent financial year, L&T Technology Services Ltd achieved a net profit margin of 14.50% and demonstrated strong return ratios, with a Return on Equity (ROE) of 27.19% and a Return on Capital Employed (ROCE) of 34.57%. The share price has increased by 8% over the past six months and 31% over the past 12 months.
JSW Infrastructure Ltd
JSW Infrastructure Limited provides maritime-related services, including cargo handling, storage solutions, and logistics services. It is the second-largest commercial port operator in India by cargo handling capacity and also operates two port terminals under O&M agreements, with a cargo handling capability of 41 MTPA.
JSW Infrastructure Ltd is a mid-cap stock with a market capitalization of Rs 67,851 crore. On Monday, its shares openedt Rs 325.70 per share, up 0.3% from the previous close.
According to the recent shareholding pattern, company promoters hold an 85.61% stake, Foreign Institutional Investors (FIIs) hold a 4.16% stake, and Domestic Institutional Investors(DIIs) hold a 2.74% stake.
The company’s revenue increased by 18% year-on-year, rising from Rs 3,195 crore in FY23 to Rs 3,763 crore in FY24. Over the same period, net profit jumped by 55%, from Rs 750 crore to Rs 1,161 crore.
In the recent financial year, JSW Infrastructure reported a net profit margin of 30.85% and demonstrated strong return ratios, with an ROE of 19.35% and an ROCE of 16.68%. The share price has increased by 25% over the past six months and 104% over the past 12 months.
Bharat Dynamics Ltd
Bharat Dynamics Limited (BDL) is a government-owned public-sector corporation in India. It is engaged in the manufacturing of guided missiles, underwater weapons, air-to-air missiles, surface-to-air missiles, air defense systems, heavy-weight torpedoes, counter measures dispensing systems, and allied defense equipment.
Bharat Dynamics Ltd is a mid-cap stock with a market capitalization of Rs 48,470 crore. On Monday, its shares opened at Rs 1,301.30 per share, up 0.46% from the previous close.
According to the recent shareholding pattern, company promoters hold a 74.93% stake, Foreign Institutional Investors (FIIs) hold a 3.06% stake, and Domestic Institutional Investors(DIIs) hold a 9.52% stake.
The company’s revenue saw a slight decline of 4.5% year-on-year, dropping from Rs 2,489 crore in FY23 to Rs 2,369 crore in FY24. However, net profit surged by 74% during the same period, rising from Rs 352 crore to Rs 613 crore.
In the recent financial year, Bharat Dynamics Ltd achieved a net profit margin of 14.1% and maintained strong return ratios, with a return on equity (ROE) of 17.9% and a return on capital employed (ROCE) of 24.2%. The share price has increased by 46% over the past six months and 134% over the past 12 months.
Written by Omkar Chitnis
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