Best Fundamentally Strong Midcap Stocks (2024)

Last Updated on May 17, 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 mid-cap 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 25th April 2024. The above mid-cap share list is derived using Tickertape’s Stock Screener based on the following parameters:

• Market cap – Midcap
• Sorted by 1Y Return – Highest to Lowest

🚀 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 25th April 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
• Sorted by Dividend Yield – Highest to Lowest

List of 10 Mid-Cap Companies with Positive Net Income (Q)

Note: The information is dated 25th April 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
• Sorted by Net Income (Q) – Highest to Lowest

Features of a Mid-Cap Stock

• Mid-cap stocks have immense growth potential, which can offer the 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. While some mid-cap companies can be in a growing phase and offer high returns.

How to Invest in the Top Mid Cap Stocks?

Investing in top mid-cap stocks can be a rewarding strategy for those seeking growth potential with somewhat less volatility than that found in small-cap companies. Here’s how you can approach investing in top mid-cap stocks:

1. Define Investment Goals

Understand your investment objectives and risk tolerance. Mid-cap stocks can be suitable for investors looking for a balance between the growth potential of small caps and the stability of large caps.

2. Research and Identify

Focus on industries with strong growth prospects and identify mid-cap companies that show solid fundamentals. You can also look for companies with innovative products, market leadership, and a sustainable competitive advantage.

3. Financial Analysis

Evaluate the financial health of these companies by examining key metrics such as earnings growth, return on equity, debt-to-equity ratio, and profit margins. Financial stability and consistent performance are indicators of a promising mid-cap stock.

4. Diversification

Invest in a variety of sectors to spread risk. Mid-cap portfolios can include stocks from different industries to mitigate sector-specific risks and capitalise on growth in multiple areas.

5. Monitor Market Trends

Staying informed about overall market trends and how they affect mid-cap stocks can be beneficial for you as an investor. Economic factors, market cycles, and changes in regulations can impact the performance of mid-cap stocks.

6. Investment Strategy

Decide whether you will invest in a lump sum or use a systematic investment plan (SIP) to gradually build your position. 

7. Use Professional Tools and Advice

Consider leveraging professional investment advice or tools. Financial advisors, investment research reports, and analytical platforms can provide deeper insights and updated information on potential investment opportunities. Tickertape provides you in-depth information about each asset, whether its a stock, mutual fund or ETF. Connect your portfolio today and analyse each investment in detail. Try now!

8. Review and Adjust

Regularly review your mid-cap stock investments to ensure they continue to align with your financial goals and market conditions. Be prepared to adjust your holdings as needed based on performance and changing market dynamics.

Investing in mid-cap stocks requires a blend of diligent research, strategic planning, and ongoing management. By carefully selecting and monitoring your investments, you can take advantage of the growth potential that mid-cap stocks have to offer while managing associated risks.

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. 

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

What is a mid-cap stock in India?

As the name suggests, mid-cap stocks are the stocks in between large-cap and small-cap. Mid-cap companies have a market value between Rs. 5,000 cr. to Rs. 20,000 cr. In the stock exchanges, these companies are ranked from 101 – 250.

How to get the list of best mid cap IT stocks?

You can get the list of midcap IT stocks on Tickertape by following the steps below: 

• Login to Tickertape 
• Open the Stock Screener 
• Select ‘Nifty Midcap 100’ under the ‘Stock Universe’
• Select ‘Informational Technology’ in ‘Sector’

What are the 100 best mid cap stocks companies? 

You can get the list of the 100 best mid-cap stocks on Tickertape. 

• Login to Tickertape
• Open the Stock Screener
• Select ‘Nifty Midcap 100’ under the ‘Stock Universe’

How to identify the best mid-cap IT stock for long-term investment?

Here’s step by step process to find the best midcap IT stocks in India:

• Login to Tickertape
• Open the Stock Screener
• Select ‘Nifty Midcap 100’ under the ‘Stock Universe’
• Select ‘Informational Technology’ in ‘Sector’
• Select any filter that aligns with your criteria

How to find out the best mid cap shares for your portfolio?

To identify the best mid-cap shares to buy, you can start analysing industry trends and economic cycles to select sectors with growth potential. You can also focus on companies with strong fundamentals, including healthy balance sheets, steady earnings growth, and effective management. Look out for financial ratios like P/E, P/B, ROE, and debt-to-equity to evaluate their performance and stability. 

Further, you may also consider companies that consistently innovate or have a competitive advantage. It’s also wise to review analyst ratings and investment research reports for expert insights, which are easily available on Tickertape. Finally, ensure that these stocks fit into your broader investment strategy and risk tolerance, ideally diversifying your portfolio to mitigate risks associated with mid-cap investments. However, before investing, consult your financial advisor. 

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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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