Since June 2022, mid-cap stocks have outperformed their large-cap peers, led by faster earnings growth and expansion in return on equity when compared to Nifty. The compound annual growth rate (CAGR) in the earning per share (EPS) of mid-cap stocks over FY21-23 is estimated to be double that of Nifty50, according to Jefferies India
Mid-cap is a term that encapsulates companies and stocks that fall in between the large-cap and small-cap categories. Companies that are listed from 101st – 250th in terms of market capitalisation in the Nifty50 Index are generally considered mid-cap companies
Over the last 1 year, Nifty Midcap 50 has rallied more than 22%, compared to 11% rally in Nifty 50. In 2023 so far, Nifty Midcap 50 index has soared nearly 8%, while Nifty50 has jumped nearly 2%. Here are the top 5 fastest-growing mid-cap stocks in the share market right now
KPIT Technologies share price has jumped nearly 100% in the last one year. KPIT Tech’s revenue has grown at a CAGR of 28.9%, and its net profit has grown at a CAGR of 38.1% in the last five years
KPIT Technologies' return ratios have also remained strong with return on equity (RoE) and return on capital employed (RoCE) coming in at 21.4% and 28.2%, respectively. Additionally, ever since its listing in 2019, the company has maintained a dividend payout of around 30%
Sona BLW Precision Forgings' share price has jumped 39% in the last two years. Its revenue has grown at a CAGR of 28%, driven by a healthy order book. The net profit has grown at a CAGR of 36.5% during this period due to the increasing contribution of high-margin EV-related products
Sona BLW Precision Forgings' RoE and RoCE currently stand at 18.1% and 22.1%, respectively. Moreover, the company became debt free by the end of 2022. It has a 1-year beta of 0.8, implying low volatility
PI Industries share price has jumped around 321% in the five years. Its revenue has grown at a CAGR of 18.6%, driven by new product launches, while the net profit has grown at a CAGR of 18.1% during the same time
PI Industries RoE currently stands at 17.1%. It has a 1-year beta of 0.82, implying low volatility. Despite investing heavily in capex, the company remains debt-free
Polycab India share price has jumped around 446% in the five years. Its revenue has grown at a CAGR of 13%, driven by volume growth in the cables and FMEG segment. The net profit has grown at a CAGR of 18.8%
Polycab India RoE and RoCE currently stand at 15.4% and 20.9%, respectively. It has a 1-year beta of 0.8, implying low volatility. It has a healthy debt to equity ratio of zero, meaning its assets are financed mainly through equity
Deepak Nitrite share price has jumped around 778% in the five years. Its revenue has grown at a CAGR of 33.1%, led by capacity expansion and a diversified product portfolio. The net profit has grown by a CAGR of 68.3%
Deepak Nitrite's RoE and RoCE have also improved and currently stand at 32% and 41.7%, respectively. The company has significantly reduced its debt, and its current debt-to-equity ratio is 0.1x. It has a 1-year beta of 0.93, implying low volatility. It also pays dividends consistently
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