Best Midcap Stocks to invest post Mar-2018 Qtr results

Best Midcap Stocks to invest post Mar-2018 Qtr results


Midcap and small cap stocks have seen a steep fall in their share prices in the last couple of Quarters. While there are good quality mid cap stocks to invest, investors are afraid to invest in current market volatility. Investors can still keep an eye on latest Quarter results, pick and choose some of the good mid cap stocks to invest. We have analysed some of the midcap stocks that posted amazing returns in terms of revenues and margins. Which are the 10 Best Midcap Stocks to invest post Mar-2018 Quarter Results.  Which are the Top 10 Best Midcap Stocks that investors can bet on now in 2018?

Also Read: Top and Best SIP Mutual Funds to invest in 2018

How we filtered Best Midcap Stocks to invest post Mar-2018 Qtr results?


We have applied a few filters to pick up good Midcap stocks.

1) Midcap stocks that have posted revenue growth of over 20% for Qtr ending Mar-2018 compared to previous year Qtr of Mar-2017.

2) Midcap stocks that have posted margin growth of over 20% for Qtr ending Mar-2018 compared to previous year Qtr of Mar-2017.

Current Market Price (CMP) indicated in this article is as on the date of writing the article on 11th June, 2018.

10 Best Midcap Stocks to invest post Mar-2018 Qtr results


#1 – Havells India – CMP Rs 560


Overview: Havells India Ltd is one of the largest electrical equipment companies in India. Founded in 1983, the company has products ranging from home and kitchen appliances, lighting for domestic, commercial and industrial applications, LED lighting, fans, modular switches and wiring accessories, water heaters, industrial and domestic circuit protection switch gear, industrial and domestic cables and wires, induction motors, and capacitors among others.

1) Company posted revenue of Rs 2535 Crores for Mar-18 Qtr Vs Rs 1832 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 38% YoY.

2) Company posted profits of Rs 226 Crores for Mar-18 Qtr Vs Rs 95 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 138% YoY.

3) Profits are at 9% of revenues for Mar-18 Qtr Vs 5% for the Mar-17 Qtr. This indicates strong growth in profits.

4) This share price has appreciated from Rs 499 to Rs 560 in the last 1 year, indicating a 12 % increase in the share price.

#2 – NATCO Pharma – CMP Rs 784


Overview: Natco Pharma Limited is a vertically integrated and R&D focused pharmaceutical company engaged in developing, manufacturing and marketing of finished dosage formulations and active pharmaceutical ingredients. Its focus is primarily on niche therapeutic areas and complex products. They market and distribute products in over 40 countries. They sell our FDF products in the United States, India, Europe and the rest of the world. They also operate in certain key geographies through its subsidiaries. They manufacture API products which are primarily used for captive consumption in its FDF products and are also sold to customers for various international markets such as Brazil, Europe and USA.

1) Company posted revenue of Rs 768 Crores for Mar-18 Qtr Vs Rs 578 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 33% YoY.

2) Company posted profits of Rs 300 Crores for Mar-18 Qtr Vs Rs 177 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 70% YoY.

3) Profits are at 39% of revenues for Mar-18 Qtr Vs 31% for the Mar-17 Qtr. This indicates strong growth in profits.

4) This share price has fallen from Rs 1,000 to Rs 784 in the last 1 year, indicating a 21 % decrease in the share price which makes it as attractive to buy now.

This is one of the best midcap stock to invest now in 2018.

#3  – TVS Motors  – CMP Rs 587


Overview: TVS Motor Company is a multinational motorcycle company headquartered in Chennai. It is the third largest motorcycle company in India with a revenue of over 13,000 Cr ($2 billion) in 2016-17.

1) Company posted revenue of Rs 3993 Crores for Mar-18 Qtr Vs Rs 3076 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 30% YoY.

2) Company posted profits of Rs 166 Crores for Mar-18 Qtr Vs Rs 127 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 31% YoY.

3) Profits are at 4% of revenues for Mar-18 Qtr Vs 4% for the Mar-17 Qtr. This indicates consistent profits.

4) This share price has appreciated from Rs 534 to Rs 587 in the last 1 year, indicating a 10 % increase in the share price.

#4 – L&T Finance Holdings – CMP Rs 167


Overview: L&T Finance Holdings Ltd is an NBFC and CIC company. It conducts its financial services businesses through various subsidiaries. L&T Financial Services is the brand name of L&T Finance Holdings Ltd.

1) Company posted revenue of Rs 2748 Crores for Mar-18 Qtr Vs Rs 2163 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 27% YoY.

2) Company posted profits of Rs 406 Crores for Mar-18 Qtr Vs Rs 316 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 29% YoY.

3) Profits are at 15% of revenues for Mar-18 Qtr Vs 15% for the Mar-17 Qtr. This indicates strong growth in profits.

4) This share price has appreciated from Rs 131 to Rs 167 in the last 1 year, indicating a 28 % increase in the share price.

#5 – Cholamandalam Investments – CMP Rs 1,575


Overview: Cholamandalam Investment and Finance Company Limited (Chola), incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers.

1) Company posted revenue of Rs 1537 Crores for Mar-18 Qtr Vs Rs 1222 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 26% YoY.

2) Company posted profits of Rs 290 Crores for Mar-18 Qtr Vs Rs 221 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 31% YoY.

3) Profits are at 19% of revenues for Mar-18 Qtr Vs 18% for the Mar-17 Qtr. This indicates strong growth in profits.

4) This share price has appreciated from Rs 1,042 to Rs 1,575 in the last 1 year, indicating a 50 % increase in the share price.

You may like: List of 109 Stocks under SEBI ASM Framework – Should you continue or exit?

#6 – Ashok Leyland – CMP Rs 142


Overview: They are the 2nd largest manufacturer of commercial vehicles in India, the 4th largest manufacturer of buses in the world and the 12th largest manufacturer of trucks globally.

1) Company posted revenue of Rs 8773 Crores for Mar-18 Qtr Vs Rs 7057 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 24% YoY.

2) Company posted profits of Rs 667 Crores for Mar-18 Qtr Vs Rs 373 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 79% YoY.

3) Profits are at 8% of revenues for Mar-18 Qtr Vs 5% for the Mar-17 Qtr. This indicates strong growth in profits.

4) This share price has appreciated from Rs 94 to Rs 142 in the last 1 year, indicating a 50 % increase in the share price.

This is one of the top midcap stock to invest now in 2018.

#7 – Indraprasta Gas – CMP Rs 275


Overview: Indraprastha Gas Limited, is one of India’s leading natural gas distribution companies. Established in 1998, the company operates primarily in the National Capital Region of New Delhi.

1) Company posted revenue of Rs 1357 Crores for Mar-18 Qtr Vs Rs 1107 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 23% YoY.

2) Company posted profits of Rs 175 Crores for Mar-18 Qtr Vs Rs 134 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 30% YoY.

3) Profits are at 13% of revenues for Mar-18 Qtr Vs 12% for the Mar-17 Qtr. This indicates strong growth in profits.

4) This share price has appreciated from Rs 218 to Rs 275 in the last 1 year, indicating a 26 % increase in the share price.

This is one of the good midcap stock to invest now in 2018.

#8 – Piramal Enterprises – CMP Rs 2,415


Overview: Piramal Enterprises Limited, formerly Piramal Healthcare Limited, is a diversified company headquartered in Mumbai, India and also a member of the Piramal Group

1) Company posted revenue of Rs 2991 Crores for Mar-18 Qtr Vs Rs 2463 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 22% YoY.

2) Company posted profits of Rs 3944 Crores for Mar-18 Qtr Vs Rs 296 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 1231% YoY.

3) Profits are at 132% of revenues for Mar-18 Qtr Vs 12% for the Mar-17 Qtr. This indicates strong growth in profits.

4) This share price has fallen from Rs 3,000 to Rs 2,415 in the last 1 year, indicating 20% fall in the share price. This provides good opportunity for investment now.

#9 – Page Industries – CMP Rs 24,000


Overview:  Page Industries, also known as Jockey India, is a publicly listed company which is the licensee of Jockey International and Speedo in India and Sri Lanka.

1) Company posted revenue of Rs 608 Crores for Mar-18 Qtr Vs Rs 501 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 21% YoY.

2) Company posted profits of Rs 94 Crores for Mar-18 Qtr Vs Rs 67 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 41% YoY.

3) Profits are at 15% of revenues for Mar-18 Qtr Vs 13% for the Mar-17 Qtr. This indicates strong growth in profits.

4) This share price has appreciated from Rs 16,000 to Rs 24,000 in the last 1 year, indicating a 50 % increase in the share price.

#10 – M&M Finance – CMP Rs 487


Overview: Mahindra & Mahindra Financial Services Limited is one of India’s leading Rural NBFC headquartered in Mumbai.

1) The company posted revenue of Rs 2497 Crores for Mar-18 Qtr Vs Rs 2123 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 18% YoY.

2) Company posted profits of Rs 500 Crores for Mar-18 Qtr Vs Rs 278 Crores in the previous year quarter ended Mar-17 indicating revenue growth of 80% YoY.

3) Profits are at 20% of revenues for Mar-18 Qtr Vs 13% for the Mar-17 Qtr. This indicates strong growth in profits.

4) This share price has appreciated from Rs 350 to Rs 487 in the last 1 year, indicating a 39% increase in the share price.

Also Read: Top 10 Midcap Mutual Funds to invest in India

Should you invest in these Midcap stocks now?


The straight answer is NO. You should keep an eye on these Midcap stocks. Since mid cap stocks have already taken beating, wait for an opportunity for any specific stock correction and start investing in these stocks. These stocks should not be invested keeping short term view. These can yield good returns in the medium to long term of say 5-8 years time frame.

Disclaimer: I am not holding any of these stocks as of now. However, as an investor, I keep buying and selling stocks on a regular basis.

If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.

Suresh

Best Midcap Stocks to invest post Mar-2018 Qtr results

9 comments

  • Jay Mehta

    This is great post thanks for the suggestions of what stocks to buy. This was very helpful appreciate a lot.

  • Dominic

    Hi Suresh,
    Very good article who interested in the mid cap.
    I will keep in watch list and invest long term view.
    Thank you

  • Surjit Anand

    Really great blog Suresh Sir, this article cleared most of my doubts.

    Sir can you share your insights on why there is a steep fall in the share prices of midcap and small cap stocks.

    Your response to my query will be highly appreciated.Thank you!

    • Hi Surjit, There are multiple reasons. Major reason is about reclassification of mutual fund schemes direction from SEBI. This made mutual fund houses to come out of midcap and smallcap stocks and reclassify into proper equity funds. They cannot invest in midcap stocks through all their schemes now. They can invest only through one fund per house in mid-cap stocks. Same way for smallcap stocks.

  • aravind

    Hi Mr suresh,
    I heard from this year onwards even ELSS FUNDS gains are taxable…
    if that is true better we go towards ulips, whose gains are not taxable..
    ex:hdfc life progrowth plus etc…
    waiting for ur inputs.
    aravind

    • Hi Aravind, All equity funds including ELSS funds returns are taxable even if these are longterm (> 1 year). Upto Mar-18 these were not taxable. You need to pay 10% tax on long term equity funds returns. Hence, if you were thinking about 15% returns earlier, you may need to reduce your expectation to 13.5% as an example. I would not advice you to go to ULIPs which comes with high charges and low returns

  • MOHIT

    I WANT TO BUY ELSS FUND OF ABSL TAX RELIEF-96 FOR TAX SCHEME . SHALL I BUY MORE THEN 01 SCHEME UNDER THE SAME COMPANIES.?
    ALTHOUGH,I HAVE ALREADY 02 NOS. MUTUAL FUND (NAME-ABSL MID CAP FUND & FRONTLINE EQUITY ) IN EQUITY FUND.

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