Best Midcap Stocks to Invest In India (2024)

Last Updated on Nov 20, 2024 by Vanessa Sequeira

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

Note: The information is dated 14th November 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

Note: The information is dated 14th November 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

Note: The information is dated 14th November 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 Vernova T&D India Ltd

GE Vernova T&D India Ltd is a prominent player in India’s power transmission and distribution sector, leveraging advanced technology to support infrastructure development. Revenue growth is projected at 38.07%, a notable improvement over the past 3-year CAGR decline of -3.24%. Additionally, the company has maintained a 5-year average debt-to-equity ratio of 26.97%, outperforming the industry average of 32.69%. This stock stands out as one of the best midcap stocks for long term investment.

Motilal Oswal Financial Services Ltd

A leader in financial services, Motilal Oswal Financial Services Ltd provides a wide array of investment products, including broking, mutual funds, and wealth management. Over the last 5 years, its revenue growth has averaged 23.7% per year, significantly above the industry average of 11.38%. The company has also kept a 5-year debt-to-equity ratio of 140.72%, notably better than the industry average of 250.55%. This company is listed among the top 10 mid cap stocks.

Indian Renewable Energy Development Agency Ltd (IREDA)

IREDA specialises in financing renewable energy projects and has been instrumental in advancing India’s green energy initiatives. Its expected earnings growth of 11.18% next year is well above the 3-year CAGR earnings growth of 4.49%. Over the last 5 years, the company’s revenue has grown at an annual rate of 19.67%, surpassing the industry average of 12.57%. IREDA is considered one of the best midcap stocks for those looking for fundamentally strong midcap stocks.

Godfrey Phillips India Ltd

As one of India’s leading tobacco manufacturers, Godfrey Phillips India Ltd has a diversified portfolio that includes branded cigarette products and a range of retail offerings. Over the past 5 years, its revenue has grown at a yearly rate of 12.63%, outpacing the industry average of 8.03%. Investors looking for best midcap stocks for long term investment may find this stock appealing.

Dixon Technologies (India) Ltd

Dixon Technologies is a major contract manufacturer in India that specialises in consumer electronics, lighting, and home appliances. Over the past 5 years, Dixon has reported an impressive annual revenue growth of 42.75%, much higher than the industry average of 11.46%, and net income growth at a yearly rate of 42.15%, compared to the industry’s minimal growth of 0.48%. This places Dixon Technologies among the top 10 mid cap stocks for long term investment.

Hitachi Energy India Ltd

Hitachi Energy India Ltd is a leader in providing sustainable energy solutions, focusing on grid modernisation and renewable integration. The company anticipates a 100.10% earnings growth next year, substantially higher than its 3-year CAGR earnings growth of 2.58%. Over the past 5 years, revenue has grown at an annual rate of 10.18%, compared to the industry average of 0.22%. It is one of the best mid cap stocks for those interested in long-term growth.

Rail Vikas Nigam Ltd

Specialising in rail infrastructure projects, Rail Vikas Nigam Ltd is a key player in India’s railway modernisation efforts. Over the last 5 years, its revenue has grown at an annual rate of 17.31%, surpassing the industry average of 12.57%. The company has maintained a 5-year debt-to-equity ratio of 90.26%, well below the industry average of 711.71%, and a 5-year average current ratio of 267.53%, exceeding the industry average of 207.43%. This positions Rail Vikas Nigam Ltd as one of the top 10 mid cap stocks in India 2024.

Housing and Urban Development Corporation Ltd (HUDCO)

HUDCO provides financing for housing and urban infrastructure projects across India, with a strong focus on affordable housing. The company expects earnings growth of 14.44% next year, ahead of its 3-year CAGR earnings growth of 10.27%. Over the last 5 years, it has maintained a debt-to-equity ratio of 447.61%, considerably lower than the industry average of 711.71%. For investors looking at best midcap stocks for long term, HUDCO is a strong candidate.

Cochin Shipyard Ltd

Cochin Shipyard Ltd is a leading shipbuilding and maintenance company in India, catering to both domestic and international clients. Expected to see revenue growth of 11.51% next year, the company’s 3-year CAGR revenue growth stands at 11.06%. Over the past 5 years, its current ratio has averaged 163.47%, higher than the industry average of 90.89%, with a net profit margin of 18.92%. Cochin Shipyard Ltd is among the top 10 mid cap stocks for long term investment.

National Aluminium Co Ltd (NALCO)

National Aluminium Co Ltd is a key player in India’s aluminum industry, benefiting from its integrated operations, from bauxite mining to aluminum production. Over the last 5 years, it has kept a debt-to-equity ratio of just 0.63%, much lower than the industry average of 72.21%, with a current ratio of 190%, outperforming the industry average of 148.16%. NALCO is often highlighted as one of the best midcap stocks for those aiming for long-term investment.

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 stocks and midcap stocks to buy 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 stocks already hold solid market positions, especially in niche sectors like IT, where best mid cap IT stocks in India are poised for growth. By diversifying your portfolio with midcap stocks to buy, 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 potentially growing companies.

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. For those looking for mid term stocks 2024, mid-cap options often provide the right balance of risk and reward.

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:

• Analyse the Company’s Fundamentals: 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, making it one of the best mid cap stocks to invest in 2024.
• Evaluate Industry Position and Market Trends: 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, such as best mid cap IT stocks in India.
• 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. 
• Check Valuation Ratios: Valuation ratios like price-to-earnings (P/E), price-to-book (P/B), etc. help you assess whether a mid-cap stock is is undervalued or overvalued. This is essential when selecting mid cap stocks to buy for long-term gains.

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 with strong growth potential.

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. For those seeking the best mid cap stocks for long term, mid-cap options offer a compelling mix of growth and risk.
• Mid-cap companies have higher growth potential and chances of raising funds through credit than small-cap companies. The top mid cap companies in India 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. For investors looking at the best stocks to invest in 2024 India, mid-cap options should can be considered.

Disadvantages of Midcap Stocks 

• The stability of mid-cap companies is not proven as they are in the growth phase. Therefore, an investor needs to thoroughly analyse the company’s management and financial history, especially when evaluating top mid cap companies in India.
• 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 explore the best mid cap stocks for long term gains, 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. For those looking for the top 10 mid-cap stocks or the best stocks to invest in 2024 India, understanding key investment factors is crucial.

• 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. 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: Key financial metrics of midcap companies 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. 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. The top mid cap companies in India often exhibit strong performance in various sectors.
• Look for Growth Potential and Innovation: Midcap companies often have high growth potential, driven by innovative products or services. 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. 

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

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Harshit Singh

Content Strategist at Tickertape

Hey there, I’m Harshit Singh Mahey! With eight years of experience as a Content Strategist, I’ve had the pleasure of working with a Fortune 100 company and building three successful startups from the ground up.

As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.

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