Since January 2018, mid-cap stocks, experienced heightened volatility due to the imposition of long term capital gain (LTCG) tax, rising crude oil prices, weakening rupee against the dollar, and re-categorization of mutual funds.

The one-year rolling returns differential between BSE Midcap Index and Sensex has touched an all-time low of -18.01%.

But now, most financial analysts and stock market pundits believe that mid-cap stocks are poised to perform well in 2019 and the present market conditions is an opportunity for investors to diversify their holdings in mid-cap stocks.

So, here is a list of top 10 mid-cap stocks that you can include in your investment portfolio.

10 Best Mid-cap Stocks

1. HEG Ltd.

HEG Ltd. is a premier company of the LNJ Bhilwara group and is currently India’s leading graphite electrode manufacturer.

HEG Ltd. manufacturing site has one of the largest integrated graphite electrode plant in the world which processes sophisticated UHP (Ultra High Power) Electrodes.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 1,706.75 1,707.95
1 Year Profit / Loss (%)  – 35.14  – 34.18
3 Year Profit / Loss (%) 913.51 913.56
5 Year Profit / Loss (%) 625.81 625.85
Beta (1 year) 1.64 1.62
Avg. Daily Volatility (% on year basis) 3.70 3.68

Key Market Indicators

Market Cap (₹ Cr) 6,587
Book Value (₹) 493.88
P/E 6.20
Industry P/E 24.86
P/B 3.46
Dividend Yield (%) 4.69
Return on Equity (%) 57.63

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 1,864.99 121.31
EBITDA (₹ Cr) 1,350.69 139.99
Net Income (₹ Cr) 866.83 153.28
EPS (₹) 216.93 153.36

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of Rs. 1,864.99 Crore, in Q3 2018 (which is an increase of 121.31% on a yearly basis).

Also, the company has reported a net profit of Rs. 866.83 crore in the latest quarter.

2. Aarti Industries Ltd.

Aarti Industries Ltd. (AIL), incorporated in the year 1984, is an Indian chemical manufacturing company headquartered in Mumbai.

It operates in four segments: basic chemicals, specialty chemicals, agrochemicals, and pharmaceuticals.

It has 16 manufacturing plants spread across Maharashtra and Gujarat and also has a research and development facility.

Aarti Industries Ltd. is one of the leading suppliers to global manufacturers of Dyes, Pigments, Agrochemicals, Pharmaceuticals, and rubber chemicals.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 1,634.65 1,637.25
1 Year Profit / Loss (%) 24.59 25.02
3 Year Profit / Loss (%) 210.14 210.23
5 Year Profit / Loss (%) 1,091.59 1,091.65
Beta (1 year) 0.78 0.79
Avg. Daily Volatility (% on year basis) 1.95 1.93

Key Market Indicators

Market Cap (₹ Cr) 14,167
Book Value (₹) 268.60
P/E 39.91
Industry P/E 25.35
P/B 6.09
Dividend Yield (%) 0.06
Return on Equity (%) 21.10

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 1,268.15 28.07
EBITDA (₹ Cr) 247.11 38.37
Net Income (₹ Cr) 132.65 47.08
EPS (₹) 16.32 48.63

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of Rs. 1,268.15 Crore, in Q3 2018 (which is an increase of 28.07% on a yearly basis).

Also, the company has reported a net profit of Rs. 132.65 crore in the latest quarter.

3. Graphite India Ltd.

Graphite India Ltd. (GIL) is the manufacturer of graphite electrodes, as well as carbon and graphite speciality products in India.

GIL’s has 6 manufacturing units spread across India and also has a 100% owned subsidiary at Nuremberg, Germany, by the name Graphite COVA GmbH.

Incorporated in the year 1967, in collaboration with erstwhile Great Lakes Carbon Corporation (GLCC) of USA, GIL has been continually improving its product quality and services.

This company is scaling to newer heights of excellence and customer recognition in recent times.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 407.45 407.00
1 Year Profit / Loss (%)  – 39.27  – 39.22
3 Year Profit / Loss (%) 416.83 416.85
5 Year Profit / Loss (%) 368.53 368.52
Beta (1 year) 1.64 1.35
Avg. Daily Volatility (% on year basis) 3.70 3.15

Key Market Indicators

Market Cap (₹ Cr) 7,961
Book Value (₹) 271.23
P/E 7.71
Industry P/E 24.86
P/B 1.50
Dividend Yield (%) 4.17
Return on Equity (%) 37.33

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 1,855.00 80.98
EBITDA (₹ Cr) 1,149.00 107.52
Net Income (₹ Cr) 764.00 112.81
EPS (₹) 39.11 NA

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of Rs. 1,855.00 Crore, in Q3 2018 (which is an increase of 80.98% on a yearly basis).

Also, the company has reported a net profit of Rs. 764.00 crore in the latest quarter.

4. Sun TV Network Ltd.

Sun TV Network Ltd., one of India’s largest media conglomerates has a power-packed 33 TV Channels with the reach of more than 95 million households in India.

Incorporated on 14th April 1993 by Kalanidhi Maran, it is Asia’s largest TV network and headquartered in Chennai, Tamil Nadu.

It owns various television channels and radio stations in multiple Indian languages. The flagship channel is Sun TV, which was the first fully private owned Tamil channel in India.

Sun TV Network Ltd. is a part of the Sun Group, which has owned Hyderabad-based IPL team Sunrisers Hyderabad since 2012.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 575.50 574.80
1 Year Profit / Loss (%)  – 34.31  – 34.23
3 Year Profit / Loss (%) 61.41 61.45
5 Year Profit / Loss (%) 44.83 44.56
Beta (1 year) 1.19 1.20
Avg. Daily Volatility (% on year basis) 2.41 2.42

Key Market Indicators

Market Cap (₹ Cr) 22,680
Book Value (₹) 118.97
P/E 19.98
Industry P/E 48.52
P/B 4.84
Dividend Yield (%) 1.74
Return on Equity (%) 24.20

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 904.45 32.37
EBITDA (₹ Cr) 718.79 37.92
Net Income (₹ Cr) 351.33 31.60
EPS (₹) 8.92 31.76

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of Rs. 904.45 Crore, in Q3 2018 (which is an increase of 32.37% on a yearly basis).

Also, the company has reported a net profit of Rs. 351.33 crore in the latest quarter.

5. Federal Bank Ltd.

Federal Bank is an Indian Private Sector, scheduled commercial bank, headquartered in Aluva, Kochi.

This bank has a customer base of around 8 million, including 1.2 million NRI customers and a large network of remittance partners across the world.

Federal Bank Ltd. has remittance arrangements with more than 110 Banks/Exchange Companies across the world and claims to handle more than 15% of India’s inward remittances.

The Bank is also listed in the BSE, NSE, and London Stock Exchange and has a branch in India’s first International Financial Services Centre (IFSC) at GIFT City in Gujarat.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 95.60 95.70
1 Year Profit / Loss (%)  – 1.44  – 1.46
3 Year Profit / Loss (%) 97.73 97.83
5 Year Profit / Loss (%) 103.40 103.54
Beta (1 year) 1.42 1.43
Avg. Daily Volatility (% on year basis) 2.43 2.44

Key Market Indicators

Market Cap (₹ Cr) 18,977
Book Value (₹) 61.82
P/E 20.15
Industry P/E 42.10
P/B 1.55
Dividend Yield (%) 1.05
Cost of Funds Ratio (x) 5

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Int./Disc on Adv/Bills (₹ Cr) 2,386.62 22.96
Gross NPA (%) 3.14 24.60
Net Income (₹ Cr) 333.63 28.31
EPS (₹) 1.67 27.48

Note: All the above values as on 28/04/2019

The bank has reported the value of gross non-performing assets (NPAs) to be Rs. 3361.23 Crore (3.14 % of total assets) and a standalone interest income of Rs. 2,386.62 crore (up 22.96 % on yearly basis).

Also, the bank has reported a net profit after tax of Rs. 333.63 crore in the 3rd quarter of 2018.

6. Crompton Greaves Consumer Electricals Ltd.

Crompton Greaves Consumer Electricals Ltd. is an Indian manufacturer and distributor of consumer products ranging from fans, light sources, pumps and household appliances, like geysers, mixer grinders, toasters, and irons.

It has maintained its leadership position in the market for products like fans, domestic pumps, and street lighting for over 20 years.

It has 4 manufacturing locations (Goa, Vadodara, Ahmednagar, and Baddi) and products are available in nearly 150,000 retail points across the country.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 228.90 230.45
1 Year Profit / Loss (%) 0.44 0.46
3 Year Profit / Loss (%) NA NA
5 Year Profit / Loss (%) NA NA
Beta (1 year) 0.69 0.67
Avg. Daily Volatility (% on year basis) 1.87 1.92

Key Market Indicators

Market Cap (₹ Cr) 14,352
Book Value (₹) 14.90
P/E
44.31
Industry P/E 28.23
P/B 15.36
Dividend Yield (%) 0.77
Return on Equity (%) 41.01

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 1,030.31 9.82
EBITDA (₹ Cr) 138.45 12.48
Net Income (₹ Cr) 79.67 14.63
EPS (₹) 1.26 13.51

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of Rs. 1,030.31 Crore, in Q3 2018 (which is an increase of 9.82% on a yearly basis).

Also, the company has reported a net profit of Rs. 79.67 crore in the latest quarter.

7. Sundaram-Clayton Ltd.

Sundaram – Clayton Ltd. is a Chennai based auto-ancillary company under the chairmanship of Mr. Venu Srinivasan.

It was founded in 1962 in collaboration with Clayton Dewandre Holdings plc, United Kingdom and provides aluminum and magnesium castings for the automotive industry in India.

It was the flagship company of TVS group before being overtaken by its subsidiary TVS Motor Company Limited.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 2,867.85 2,824.95
1 Year Profit / Loss (%)  – 42.47  – 42.56
3 Year Profit / Loss (%) 41.68 41.72
5 Year Profit / Loss (%) 315.65 315.72
Beta (1 year) 0.75 0.67
Avg. Daily Volatility (% on year basis) 2.05 1.88

Key Market Indicators

Market Cap (₹ Cr) 5,802
Book Value (₹) 1,063.38
P/E
17.17
Industry P/E 25.45
P/B 2.70
Dividend Yield (%) 0.52
Return on Equity (%) 15.71

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 469.33 16.02
EBITDA (₹ Cr) 97.23 237.60
Net Income (₹ Cr) 50.28 5083.51
EPS (₹) 24.85 5077.08

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of Rs. 469.33 crore, in Q3 2018 (which is an increase of 16.02% on a yearly basis).

Also, the company has reported a net profit of Rs. 50.28 crore in the latest quarter.

8. Shriram Transport Finance Company Ltd.

Shriram Transport Finance Company Ltd., incorporated in the year 1979, is registered as a deposit-taking Non-Banking Financial Company (NBFC) with Reserve Bank of India (RBI).

It finances small truck owners in India and currently is the market leader in truck finance.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 1,136.80 1,135.50
1 Year Profit / Loss (%)  – 30.66  – 30.68
3 Year Profit / Loss (%) 15.14 15.23
5 Year Profit / Loss (%) 41.21 41.23
Beta (1 year) 1.67 1.65
Avg. Daily Volatility (% on year basis) 2.66 2.68

Key Market Indicators

Market Cap (₹ Cr) 25,792
Book Value (₹) 554.82
P/E 16.57
Industry P/E 33.31
P/B 2.05
Dividend Yield (%) 0.97
Return on Equity (%) 12.36

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 3,991.09 29.26
EBITDA (₹ Cr) 2,913.52 37.57
Net Income (₹ Cr) 635.45 28.21
EPS (₹) 28.02 28.24

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of Rs. 3,991.09 Crore, in Q3 2018 (which is an increase of 29.26% on a yearly basis).

Also, the company has reported a net profit of Rs. 635.45 crore in the latest quarter.

9. Bajaj Electricals Ltd.

Incorporated on 14 July 1938, Bajaj Electricals Ltd. is a consumer electrical equipment manufacturing company based in Mumbai, India.

It is a part of the Rs. 380 billion Bajaj Group.

Its product portfolio includes:

  • Lighting: include lamps, tubes, and luminaire
  • Consumer durable: include appliances and fans
  • Engineering and projects: design and install transmission line towers, telecommunications towers, high-mast, poles, etc.
  • Others: include die casting, wind energy and solar energy.

These sectors might generate great returns for investors in the coming years.

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 568.35 570.30
1 Year Profit / Loss (%)  – 12.39  – 12.43
3 Year Profit / Loss (%) 159.35 159.45
5 Year Profit / Loss (%) 86.59 86.59
Beta (1 year) 1.25 1.23
Avg. Daily Volatility (% on year basis) 2.36 2.37

Key Market Indicators

Market Cap (₹ Cr) 5,820
Book Value (₹) 90.51
P/E 69.34
Industry P/E 28.23
P/B 6.28
Dividend Yield (%) 0.62
Return on Equity (%) 8.93

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 2,156.48 89.05
EBITDA (₹ Cr) 143.31 79.36
Net Income (₹ Cr) 63.92 73.55
EPS (₹) 6.23 72.58

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of Rs. 2,156.48 Crore, in Q3 2018 (which is an increase of 89.05% on a yearly basis).

Also, the company has reported a net profit of Rs. 63.92 crore in the latest quarter.

10. Escorts Ltd.

Escorts Ltd. is an Indian engineering company that operates in the areas of agri-machinery, construction and material handling equipment, and railway equipment.

Incorporated in the year 1944, the company headquartered in Faridabad, Haryana and has marketing operations in more than 40 countries.

Its product portfolio includes:

  • Escorts Agri Machinery: manufactures tractors
  • Escorts Construction Equipment: manufactures pick and carry cranes, backhoe loader, vibratory rollers and forklifts
  • Railway Equipment Division: manufactures and supplies critical railway components such as air brake system, EP brake system, draft gears, and couplers, composition brake blocks, dampers and rubber components to Indian Railways. 
  • Escorts Auto Products: manufactures shock absorbers, struts and telescopic front forks for the automotive industry.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 733.35 734.10
1 Year Profit / Loss (%)  – 23.51  – 23.43
3 Year Profit / Loss (%) 337.43 337.35
5 Year Profit / Loss (%) 492.85 492.76
Beta (1 year) 1.95 1.92
Avg. Daily Volatility (% on year basis) 2.31 2.32

Key Market Indicators

Market Cap (₹ Cr) 8,989
Book Value (₹) 180.71
P/E 25.90
Industry P/E 10.25
P/B 4.02
Dividend Yield (%) 0.27
Return on Equity (%) 15.66

Latest Quarterly Results

Q3 2018 Results % Chg (Yearly)
Sales (₹ Cr) 1,655.06 37.35
EBITDA (₹ Cr) 224.90 46.77
Net Income (₹ Cr) 140.11 52.34
EPS (₹) 1.72 52.21

Note: All the above values as on 28/04/2019

The company has reported a standalone sales revenue of Rs. 1,655.06 Crore, in Q3 2018 (which is an increase of 89.05% on a yearly basis).

Also, the company has reported a net profit of Rs. 140.11 crore in the latest quarter results.

How the Above Stocks are Selected?

All the above mentioned mid-cap stocks expected to outpace their peers in terms of earnings and stock performance and are often expected of booming in expansionary economies.

Following are the parameters looked at for selection of top mid-cap stocks :

  • Strong management team
  • Good business strategy
  • The company competes in a fast-growing market
  • Recorded a strong growth in sales, EBITDA and EPS
  • Valuation based on PE ratio as compared to the industry average
  • Caters to the large target market
  • Has a market-leading product in a high-growth industry or sector
  • Is able to reinvest its excess cash flow at a high return on equity (ROE).
  • have also shown substantial improvements in their year-on-year net profit growth between the 2nd and the 3rd quarter of FY 2018-19.
  • Last 1Y performance is negative as compared to 3Y and 5Y performance due to mid-cap underperformance in FY 2018-2019.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww