Best Midcap Stocks to Invest In India (2024)

Last Updated on Sep 18, 2024 by Anjali Chourasiya

Listed companies are classified into three major categories based on their market capitalisation – large-cap, mid-cap and small-cap. Companies valued between Rs. 5,000 cr. and Rs. 20,000 cr. are called mid-cap companies, and their associated stocks are known as midcap stocks. In this blog, we will delve deeper into understanding the advantages and risks of investing in mid-cap stocks and also identify the top 10 mid-cap stocks in 2024 using different parameters.

10 Best Mid-Cap Stocks in 2024 Based on 1Y Return

Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	1Y Return (%)	Fundamental Score
Ge T&D India Ltd	Heavy Electrical Equipments	43,355.08	1,693.25	239.46	326.35	4.15
Godfrey Phillips India Ltd	FMCG – Tobacco	40,068.46	7,737.85	45.38	276.29	5.17
Motilal Oswal Financial Services Ltd	Diversified Financials	46,127.60	770.85	18.90	250.61	11.00
Housing and Urban Development Corporation Ltd	Specialized Finance	49,066.57	245.10	23.18	237.37	7.26
Oil India Ltd	Oil & Gas – Exploration & Production	100,109.58	615.45	15.80	222.96	5.75
Hitachi Energy India Ltd	Heavy Electrical Equipments	55,686.98	13,139.40	340.01	212.74	3.80
Prestige Estates Projects Ltd	Real Estate	82,588.21	1,917.40	60.10	212.43	4.81
Kalyan Jewellers India Ltd	Precious Metals, Jewellery & Watches	73,511.39	712.85	123.06	210.81	2.61
Dixon Technologies (India) Ltd	Home Electronics & Appliances	84,317.54	14,091.30	229.28	186.39	8.00
BSE Ltd	Stock Exchanges & Ratings	45,130.42	3,333.70	57.98	167.48	8.13

Note: The information is dated 17th September 2024. The above mid-cap share list is derived using Tickertape’s Stock Screener based on the following parameters:

• Market Cap > Midcap
• 1Y Return: Sorted by Highest to Lowest
• Fundamental Score: Set to Positive

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

How to Invest in Mid-Cap Stocks with smallcase?

Did you know you can invest in mid-cap stocks selected by SEBI-Registered analysts? Well, that is a possibility via smallcase. Here’s a brief about what it is.

smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.

Among 500+ smallcases, here’s a smallcase that is focused on mid-cap and small-cap companies:

Mid and Small Cap Focused Portfolio smallcase by Niveshaay

Top 250 Stocks smallcase by Windmill Capital

Disclosure for Mid and Small Cap Focused Portfolio

Disclosure for Top 250 Stocks

Note: These smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

10 Mid-Cap Stocks With Highest Dividend Yield

Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	Dividend Yield (%)
Hindustan Petroleum Corp Ltd	Oil & Gas – Refining & Marketing	86,964.11	408.70	5.43	5.14
Canara Bank Ltd	Public Banks	95,731.65	105.54	6.27	3.05
Petronet LNG Ltd	Oil & Gas – Storage & Transportation	50,122.50	334.15	13.72	2.99
Union Bank of India Ltd	Public Banks	94,756.00	124.13	6.87	2.90
National Aluminium Co Ltd	Metals – Aluminium	34,302.77	186.77	17.25	2.68
Bank of India Ltd	Public Banks	51,117.35	112.28	7.79	2.49
Nippon Life India Asset Management Ltd	Asset Management	41,688.04	658.35	37.65	2.49
Bank of Maharashtra Ltd	Public Banks	42,353.70	59.81	10.40	2.34
Indian Bank	Public Banks	70,008.45	519.75	8.32	2.31
Ashok Leyland Ltd	Trucks & Buses	70,709.17	240.80	28.47	2.06

Note: The information is dated 17th September 2024. The above list of high dividend mid-cap stocks is derived using Tickertape’s Stock Screener based on the following parameters:

• Market Cap > Midcap
• Dividend Yield: Sorted by Highest to Lowest

List of 10 Mid-Cap Companies with Positive Quarterly Net Income

Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	Net Income (Q) (Rs. in cr.)
Canara Bank Ltd	Public Banks	95,731.65	105.54	6.27	3,946.49
Union Bank of India Ltd	Public Banks	94,756.00	124.13	6.87	3,600.95
Indian Bank	Public Banks	70,008.45	519.75	8.32	2,416.33
NMDC Ltd	Mining – Iron Ore	62,908.39	214.66	11.29	1,970.77
Oil India Ltd	Oil & Gas – Exploration & Production	100,109.58	615.45	15.80	1,885.78
IDBI Bank Ltd	Private Bank	98,255.45	91.38	16.98	1,734.32
Bank of India Ltd	Public Banks	51,117.35	112.28	7.79	1,732.66
General Insurance Corporation of India	Insurance	69,132.13	394.05	10.34	1,400.66
LIC Housing Finance Ltd	Home Financing	37,123.75	674.90	7.80	1,306.30
Bank of Maharashtra Ltd	Public Banks	42,353.70	59.81	10.40	1,293.68

Note: The information is dated 17th September 2024. The above list of top mid-cap stocks in India is derived using Tickertape’s Stock Screener based on the following parameters:

• Market Cap > Midcap
• Net Income (Q): Sorted by Highest to Lowest

Overview of the Best Mid Cap Stocks in India – Based on 1Y Return

GE T&D India Ltd

GE T&D India Ltd, part of General Electric’s global portfolio, specialises in transmission and distribution equipment. The company provides essential products such as transformers, substations, and high-voltage electrical solutions, which are key to India’s power infrastructure.

The company has a market capitalisation of Rs. 43,355.08 cr., with a closing price of Rs. 1,693.25. Its PE ratio is 239.46, and the stock has shown a 1-year return of 326.35%. The fundamental score for GE T&D India Ltd is 4.15.

Godfrey Phillips India Ltd

Godfrey Phillips India Ltd, established in 1936, is a prominent player in the Indian tobacco industry. It is part of the Modi Enterprises group and is well-known for brands like Four Square and Red & White. The company also has business interests in confectionery and retail.

Godfrey Phillips India Ltd has a market capitalisation of Rs. 40,068.46 cr., with a closing price of Rs. 7,737.85. Its PE ratio is 45.38, and it has achieved a 1-year return of 276.29%. The fundamental score is 5.17.

Motilal Oswal Financial Services Ltd

Motilal Oswal Financial Services Ltd was founded in 1987 and offers a wide range of financial services, including brokerage, asset management, investment banking, and wealth management.

The company has a market capitalisation of Rs. 46,127.60 cr. and a closing price of Rs. 770.85. Its PE ratio is 18.90, and it has achieved a 1-year return of 250.61%. The fundamental score is 11.00.

Housing and Urban Development Corporation Ltd

Housing and Urban Development Corporation Ltd (HUDCO), established in 1970, provides financial assistance for housing and urban infrastructure projects across India. It operates as a public sector company under the Ministry of Housing and Urban Affairs.

HUDCO has a market capitalisation of Rs. 49,066.57 cr., with a closing price of Rs. 245.10. Its PE ratio is 23.18, and it has delivered a 1-year return of 237.37%. The fundamental score is 7.26.

Oil India Ltd

Oil India Ltd, incorporated in 1959, is involved in the exploration, production, and transportation of crude oil and natural gas. The company operates primarily in India and Southeast Asia, contributing significantly to the country’s energy needs.

Oil India Ltd has a market capitalisation of Rs. 100,109.58 cr., with a closing price of Rs. 615.45. The PE ratio is 15.80, and the 1-year return stands at 222.96%. Its fundamental score is 5.75.

Hitachi Energy India Ltd

Hitachi Energy India Ltd, a subsidiary of Hitachi Group, is engaged in providing energy solutions, specialising in power grids, transformers, and related heavy electrical equipment. It is part of the global effort to transition towards more sustainable energy systems.

The company has a market capitalisation of Rs. 55,686.98 cr., and the stock is priced at Rs. 13,139.40. The PE ratio is 340.01, with a 1-year return of 212.74%. The fundamental score is 3.80.

Prestige Estates Projects Ltd

Prestige Estates Projects Ltd, founded in 1986, is a leading real estate developer in India with projects across residential, commercial, retail, and hospitality sectors. The company is based in Bangalore and has a significant presence across major cities in India.

The company has a market capitalisation of Rs. 82,588.21 cr., with a closing price of Rs. 1,917.40. The PE ratio is 60.10, and its 1-year return is 212.43%. The fundamental score is 4.81.

Kalyan Jewellers India Ltd

Founded in 1993, Kalyan Jewellers India Ltd is one of the largest jewellery retailers in India, offering a wide range of gold, diamond, and other precious metal products. The company has a strong retail network across the country and internationally.

Kalyan Jewellers has a market capitalisation of Rs. 73,511.39 cr., with a closing price of Rs. 712.85. The PE ratio is 123.06, and its 1-year return is 210.81%. The fundamental score is 2.61.

Dixon Technologies (India) Ltd

Dixon Technologies (India) Ltd, established in 1993, is a leading electronics manufacturer specialising in consumer durables such as LED TVs, washing machines, and other home appliances. The company also provides design and manufacturing services for global brands.

Dixon Technologies has a market capitalisation of Rs. 84,317.54 cr., with a stock price of Rs. 14,091.30. The PE ratio stands at 229.28, and its 1-year return is 186.39%. The fundamental score is 8.00.

BSE Ltd

BSE Ltd, Asia’s oldest stock exchange, was established in 1875 and operates as a premier exchange for trading in equity, debt instruments, derivatives, and other financial products. The company also provides data and analytics services to market participants.

BSE Ltd has a market capitalisation of Rs. 45,130.42 cr., with a closing price of Rs. 3,333.70. The PE ratio is 57.98, and it has a 1-year return of 167.48%. The fundamental score is 8.13.

Understanding Mid-Cap Stocks

Mid-cap stocks represent companies that fall between large-cap and small-cap categories in terms of market capitalisation. These companies typically have a market value ranging from Rs. 5,000 cr. to Rs. 20,000 cr. Mid-cap stocks include companies that are still in the growth phase but are more stable than smaller firms. They often hold strong market positions within their sectors and have room to grow. If you’re looking for a balance between growth potential and relative stability, mid-cap stocks can be an attractive option. Indices like the BSE Midcap Index and the Nifty Midcap 100 help track the performance of mid-cap companies in India.

Why Should You Consider Mid-Cap Stocks?

Mid-cap stocks offer a balance between growth potential and moderate risk, making them an attractive option for investors. Companies within the popular indices like Nifty Midcap 150, Nifty Midcap 100, etc., often have room to expand, providing higher growth potential compared to large-cap stocks. They also tend to be less volatile than small-cap stocks, offering more stability while still delivering strong returns during favourable market conditions.

Many mid-cap companies already hold solid market positions, especially in niche sectors like IT, where companies in the midcap IT stocks list are poised for growth. By diversifying your portfolio with mid-cap stocks, you can spread risk across multiple sectors and market caps. Moreover, these stocks often benefit from analyst coverage, giving you access to valuable insights.

Mid-cap stocks can grow into large-cap companies, offering significant upside for long-term investors. Exploring the top 50 midcap stocks in India or the mid cap stocks list helps you identify promising companies with the potential to scale.

Features of a Mid-Cap Stock

• Mid-cap stocks have immense growth potential, which can offer investors good returns.
• Mid-cap stocks are less affected by market fluctuations than small-cap stocks. However, they are considered to be highly risky in comparison with large-cap stocks.
• Mid-cap companies lie in a broad spectrum. Some companies can be in the development stage, which is stable but offers minimal returns. In contrast, some mid-cap companies can be in a growing phase and offer high returns.

How to Identify the Best Mid Cap Stocks?

Identifying the best mid-cap stocks involves a detailed approach that examines a company’s fundamentals, market position, and potential for future growth. Here are the steps you can take to identify promising mid-cap stocks:

Understand Your Investment Goals and Risk Appetite

Start by defining your financial goals and understanding how much risk you are willing to take. Mid-cap stocks often provide a balance between the high growth of small caps and the relative stability of large caps. Knowing your objectives helps you select mid-cap stocks that align with your investment strategy.

Analyse the Company’s Fundamentals

To identify strong mid-cap stocks, you should closely examine the company’s financial health. Focus on metrics such as earnings growth, return on equity (ROE), profit margins, and debt-to-equity ratio. A company with consistent earnings growth and low debt levels often indicates financial stability, which is crucial for identifying solid mid-cap stocks.

Evaluate Industry Position and Market Trends

It is important to consider the company’s position within its industry. Companies that hold a strong market position or have a unique competitive advantage are often better equipped to grow. You can look at how the company performs compared to its peers and whether it operates in a sector that is poised for growth.

Assess Management Quality and Corporate Governance

The quality of a company’s management plays a significant role in its success. Look for companies led by experienced and reputable management teams with a track record of sound decision-making and strategic planning. Strong corporate governance practices, such as transparency and shareholder-friendly policies, can be indicators of a well-managed mid-cap stock.

Check Valuation Ratios

Valuation ratios like price-to-earnings (P/E), price-to-book (P/B), and price-to-sales (P/S) help you assess whether a mid-cap stock is fairly valued. Comparing these ratios to industry averages can provide insights into whether the stock is undervalued or overvalued. Stocks with attractive valuations may offer better opportunities for growth.

Look for Consistent Revenue and Earnings Growth

Identifying mid-cap stocks with consistent and robust revenue and earnings growth can point you towards companies with long-term potential. You should review past performance to see if the company has demonstrated an ability to grow its revenue and profit margins over time. Sustainable growth trends often signal a resilient and thriving business.

Monitor Insider Activity and Analyst Recommendations

Paying attention to insider trading activities, such as stock purchases by company executives, can provide clues about a stock’s potential. If insiders are buying shares, it may indicate their confidence in the company’s future. You can also review analyst recommendations and ratings for additional insights into the stock’s prospects.

Evaluate External Risk Factors

Identifying potential external risks is crucial when selecting mid-cap stocks. Factors such as regulatory changes, economic conditions, and industry-specific risks can impact a company’s performance. Understanding these risks helps you make more informed decisions and avoid stocks that may face significant challenges.

By following these steps, you can effectively identify the best mid-cap stocks for your investment portfolio. A thorough evaluation of company fundamentals, industry position, and financial health will help you select stocks that have strong growth potential while managing associated risks.

How to Invest in the Top Mid Cap Stocks?

To identify and invest in the best midcap company in India, follow the below mentioned steps.

Step 1: Launch Tickertape Stock Screener.

Step 2: Select the ‘Market Cap’ as ‘Mid Cap’. 

Step 3: Select your desired filters to identify your best list of mid cap companies in India.

There are over 200 filters, including Return on Equity (ROE), Net Profit Margin (NPM), Debt-to-Equity, CAGR, and more. You can also select ‘Stock Universe’ as ‘Nifty MidCap 100’ if you want to analyse the stocks of the Index. Try it out now!

Advantages of Mid-Cap Stocks

• Mid-cap stocks are flexible, accommodating both low and high-risk investment strategies. They provide investors with a versatile avenue to enhance portfolio growth and stability.
• Mid-cap companies have higher growth potential and chances of raising funds through credit than small-cap companies. These companies also expand aggressively, which can translate into higher return on investment.
• By staying invested in a mid-cap company with strong fundamentals and financials, you can generate good returns in the long term.
• Mid-cap stocks strike a balance by presenting a moderate level of risk. They offer superior returns compared to large-cap stocks while maintaining a higher degree of stability than small-cap stocks.

Disadvantages of Midcap Stocks 

• Large-cap companies are considered stable due to their proven experience and track record. In the case of mid-cap companies, the stability is not proven as they are in the growth phase. Hence, an investor needs to analyse the company’s management and financial history. 
• Mid-cap stocks are highly volatile when compared to large-cap stocks. Though the probability of providing good returns is high, there are equal chances of generating negative returns. 
• Low-ranking mid-cap companies are highly prone to value-trap. When a company operates with limited cash flow and low profits, it is considered a value trap. In simple terms, the company can be in a stagnant position. Such mid-cap companies may not even trade.

Who Should Invest in Midcap Stocks?

Though mid-cap stocks may appear as a balance in terms of risk and returns, compared to small-cap and large-cap, these stocks may not suit everyone. Investors who can consider investing in mid-cap stocks are as follows:

• Investors looking for long-term investment options can consider mid-cap stocks as they help gain favourable returns in the long term. 
• Investors looking for capital appreciation can consider mid-cap stocks. 
• Investors with a moderate risk appetite can consider investing in mid-cap stocks. 

Factors to Consider When Investing in the Best Midcap Stocks

Investing in midcap stocks can be a strategic choice for investors seeking a balance between the rapid growth of small caps and the stability of large caps. Midcap stocks, often listed in indices like the BSE Midcap Index and Nifty Midcap, can provide significant opportunities, but there are several factors you need to consider before making an investment. Here’s a detailed look at the key factors:

Review the Midcap Index Performance

One of the first steps you should take is to review how midcap indices, such as the Nifty Midcap 50 and BSE Midcap Sensex, are performing. The performance of these indices reflects the overall market sentiment toward midcap companies. A positive trend in these indices often signals investor confidence and may indicate potential growth in the midcap segment.

Assess the Company’s Financial Stability

You need to carefully evaluate the financial health of midcap companies before investing. Key financial metrics like earnings growth, return on equity (ROE), and debt-to-equity ratios help determine the stability and growth prospects of midcap stocks. For instance, checking the financials of companies in the midcap share list can help you identify firms with solid fundamentals.

Examine Sectoral Exposure

Midcap stocks span various sectors, including IT, healthcare, manufacturing, and consumer goods. You should look at the sectoral exposure of the midcap companies you are considering. For example, reviewing midcap IT stocks or checking the midcap IT stocks list helps you understand the potential risks and rewards associated with specific industries.

Evaluate Valuation Ratios

Valuation plays a critical role in deciding whether a midcap stock is a good buy. You can use valuation ratios such as the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and enterprise value-to-EBITDA. Comparing these ratios with industry averages or other companies in the Nifty Midcap 50 stocks list helps you gauge if a stock is overvalued or undervalued.

Look for Growth Potential and Innovation

Midcap companies often have high growth potential, driven by innovative products or services. You should focus on identifying companies that are not just growing but also innovating within their sector. Reviewing the top 50 midcap stocks in India can help you pinpoint firms that are leaders in their niche and poised for future growth.

Understand Market Trends and Economic Factors

You should stay informed about market trends and economic factors that impact midcap stocks. Changes in government policies, interest rates, and global economic conditions can affect the performance of midcap companies. Monitoring these factors will help you make informed decisions about the timing and selection of your investments.

Analyse the Company’s Management and Governance

A company’s management team and governance practices can significantly influence its success. Midcap companies with strong leadership, transparent governance, and a history of making sound business decisions often perform better. You can research the management quality of companies listed in the BSE Midcap index to ensure you are investing in well-managed firms.

Check Liquidity and Trading Volume

Liquidity is an important factor to consider, as some midcap stocks may have lower trading volumes compared to large-cap stocks. You need to ensure that the stocks you invest in are sufficiently liquid, allowing you to enter or exit positions without significant price impact. Reviewing trading volumes of stocks in the BSE Midcap Sensex can help you gauge liquidity levels.

Diversify Your Midcap Investments

Diversification is key to managing risk in your midcap investments. Instead of concentrating your investments in a few stocks, you should spread them across multiple sectors and companies. By diversifying within the midcap space, you can reduce the impact of sector-specific downturns on your portfolio.

Consider Analyst Ratings and Market Sentiment

Paying attention to analyst ratings and market sentiment can provide additional insights into midcap stocks. Analysts often provide valuable assessments on the top midcap stocks, helping you understand the potential risks and rewards. By reviewing expert opinions and sentiment analysis, you can make more informed investment decisions.

Conclusion

Mid-cap stocks, positioned between larger and smaller companies, present a strong potential for growth and demonstrate resilience in the face of market fluctuations. For investors aiming for long-term returns with a moderate risk appetite, considering mid-cap stocks is a prudent choice. However, before making any investments, it’s essential to conduct thorough research using Tickertape Stock Screener. 

This powerful tool can help you filter stocks based on various parameters and provides comprehensive data on each stock, allowing you to make informed investment decisions. So why not give it a try today and take your investment portfolio to the next level?

FAQs About Mid Cap Stocks in India

Explore other popular stock collections on Tickertape –

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Pharma Penny Stocks	Renewable Energy Stocks	Penny Stocks Under Rs. 1	Undervalued Stocks	Green Hydrogen Stocks	Gold Stocks
Real Estate Stocks	Halal Stocks	Small Cap Stocks	Stocks Under Rs. 20	Solar Energy Stocks	Swing Trade Stocks
Ethanol Stocks	Stocks Under Rs. 100	Mid Cap Stocks	Stocks Under Rs. 50	Volatile Stocks	Insurance Stocks
Fundamentally Strong Penny Stocks	Liquid Stocks For Intraday Trading	Defence Stocks	Artificial Intelligence Stocks	Short Term Stocks	High Beta Stocks
Monopoly Stocks	1-Month Highest Return Stocks	Intraday Stocks	Fundamentally Strong Stocks	Stocks Under Rs. 10	Bluechip Stocks at 52 Week Low
Steel Stocks	Multibagger Stocks	Drone Stocks	Sugar Stocks	Battery Stocks	Long Term Stocks
Pesticide Stocks	FMCG Stocks	Tobacco Stocks	Growth Stocks	Cement Stocks	High CAGR Stocks