Previously, we’ve covered the best picks of small-cap stocks in India. In today’s topic, the center point will be on the Best Mid Cap Stocks List in NSE for investors. Analysts feel that in this year earnings will be the driving factor for the Indian stock market. There is a high probability of mid-cap stocks outperforming the large caps in the coming years.
What are Mid-Cap Stocks?
Under the market capitalization category, the companies which have a market cap of more than 13000 Cr but less than 75000 Cr, fall under the mid-cap category. The top 101 to 250 companies belong to the specific market capitalization. Though mid-cap companies carry a higher risk than large-cap, the profit is also higher here. Here is the Best Mid Cap Stocks List in NSE.
Best Mid Cap Stocks List
Let us now discuss the best mid-cap stocks list given by various research teams.
Picks By Stock Brokers
REC (Rural Electrification Corporation)
The company is a Government-owned company that finances various projects in the power sector. So, the non-performing assets are under control. As per the report of Sept 30, 2018, the company’s EPS (earnings per share) was 8.98. In the year 2018, the company declared a dividend of Rs. 9.15/share Because of the substantial dividend yield, if there is a sudden collapse in the market, the stock price would be protected. (Suggested by SANJIV BHASIN in economic times, Executive Vice President, IIFL Securities).
KTKBANK (Karnataka Bank)
When it comes to private sector banking stocks, Karnataka Bank is one of the cheapest stocks. The share provides a good dividend yield of nearly 3%. As per the report, EPS (earnings per share) was Rs.15 in FY18. It is a decent mid-cap stock to bet on in the coming days. There is a possibility of short-term capital gain here. (Recommended by Vijay Kedia, MD, Kedia Securities in economics times)
Picks by WikiFinancePedia
The top 10 list of mid-cap stocks is taken from the WikiFinancePedia site. The list contains multiple companies with different websites. Each company carries stock price along with EPS, P/E ratio, and P/BV.
Another list of top mid-cap companies is given below. It also contains the same information as before, company names, industry names, stock price, EPS, P/E, and P/BV. (Recommended by WikiFinancePedia)
Karvy Stock Broking Recommendation
According to the recommendation of Karvy Stockbroking, some best pick mid-cap stocks are given below:
- Bajaj Electricals
- Finolex Cables
- Jain Irrigation
- KPR Mill
- Relaxo Footwear
- Take Solutions etc
Kotak Institutional Equities Recommendation (MoneyControl)
Kotak Institutional Equities recommends 15 mid-cap stocks which include Petronet, Shriram, Federal Bank, Mindtree, etc. The list is as follows:
So, these are some of the best picks for mid-cap stocks from the Indian stock market. Investors may take these recommendations to create a profitable portfolio.
Mid-Cap Stocks List Based on Our In-house Analytics
Now, the question is why do we choose these above recommended or suggested Best Mid Cap Stocks List in NSE? Only because of the popular financial identities’ recommendation? Of course not. First, analyze then decide by yourself. Nowadays, most traders and investors depend on online-based investment. They prefer to work on both technical as well as fundamental analysis for better accuracy.
The fundamental analysis mainly deals with the historic market activities of companies. The overall fundamentals of business from various perspective is the core objective of the analysis. To choose any kind of share for holding, fundamental analysis is a must to do act.
Therefore, in fundamental analysis, the followings are the main lookouts by which one can analyze a company’s historical data. To know the actual valuation of a stock, you need to evaluate the company’s growth, earnings, and value.
- The profit-loss statement, Balance Sheets, and Cash Flows.
- P/E ratio (Price to Earnings), EPS (Earnings per share)
- BV (Book Value), FV (Face Value), P/BV (Price to Book Value Ratio)
- In addition, Dividend Yield, Dividend Payout Ratio
Now, I will show you how you can do the fundamental assessment of a company. Suppose I take one of the above-mentioned mid-cap companies, REC.
Fundamental Analysis of REC
Nowadays, there are many analytical sites available, from where you can easily evaluate any of the company’s fundamentals. Like here, I have taken REC (Rural Electrification Corporation) and put it on the Moneyworks4me site. From there, I got the following analytical details.
Here, you will get the past 10 years of fundamentals overview of the company. For instant, Operating income, EPS, Book Value/Share, net profit, asset quality, etc along with key financial ratios are displayed there. The overall picture shows the company is carrying a steady profitable level throughout the years. Though in FY17-18 their profit level becomes minimized, FY19 is a turning-back year for them. Now, let’s look at another important point of analysis, promoters’ holdings. The current price of the stock is Rs.150 (As of 10th September 2019)
The company’s promoters’ holding is at a moderate level but it is more than 50%. By estimating the promoters’ holdings, you can value a company’s share demand. Promoters invest their money after a minute and detailed analysis. Hence, you can rely on them. More promoters’ holdings mean the company’s shares have a high probability to rise up in the future.
However, in the same way, you can analyze other companies’ fundamentals. now, have a look at the technicals.
After fundamentals, now come to the most interesting part, technical studies. It has nothing to do with the previous historical data of a company. Hence, technical only deals with the current price movement and ups-down of the market. Unlike fundamentals, it works with historical trading data.
Now, most of the popular tools which help to analyze stocks technically are as follows:
- Technical charts (Candlesticks, Heikin Ashi, etc chart pattern)
- Indicators, Oscillators, Drawing Tools.
- Current news, chart analysis
Let’s begin with the central part of it. How you can analyze technically any of the companies stocks. Here, I’ve taken one of the above stocks as an example to let you know the process of technical analysis.
Technical Analysis of KTKBANK (Karnataka Bank)
In order to analyze the specific bank’s share technically, first, you need to have either a technical platform or trusted websites (that can analyze the stocks on your behalf of you). According to me, besides taking others’ views, you must do the analysis on your own. Like here, I choose to do my analysis on KTKBANK with the Zerodha charting platform.
So, the above chart is taken from Zerodha Kite (India’s one of the best Charting platform). It is a one-day time frame candlestick chart. At a glance, the chart reflects a downward movement but if you analyze more properly, you will see a probability of a future rise in the share price. Look at the MACD (a popular indicator in technical analysis), the buy-line is above the sell-line (the red one). Therefore, the graph is gradually rising.
Now, as the overall market condition is not so well, the effect causes some trouble for the bank’s share also. The current price of the stock is Rs.76.50. In the future, it is expected to see growth in it as the chart analysis overview is pretty well.
In conclusion, mid-cap stocks can fetch you better returns in the stock market if you can manage the inherent risk. However, I want to mention that listening to others’ advice on investment should not be the benchmark. You always try to do an analysis on your own. Lastly, it is advisable to take your own investment decision.
In addition, the article “Best Mid Cap Stocks List in NSE” was first published in March 2019. Now, it has been edited and re-published on the current date with the recent update. It is advisable to verify the stocks on your own before investing.