Top 5 Mid-Cap Stocks in India for 2023: Investment Opportunities and Analysis
Companies that are smaller than blue-chip corporations but not as little as small-cap companies are referred to as mid-cap companies in India. The market value of these companies ranges from 5,000 to 20,000 crores. Due to their distinctive combination of stability and development potential, mid-cap shares are frequently attractive to investors looking for possibilities in the Indian market. This article will list the best mid-cap shares in India that have attracted investor interest due to their outstanding past performance and promising future.
Top 5 Indian mid-cap stocks for 2023
Information Edge India Limited
An internet conglomerate called Info Edge has a number of businesses in its portfolio, such as job, real estate, matrimonial, and education platforms. Over the past three to five years, the business has produced solid profits while remaining mostly debt-free. One of the best mid-cap equities to think about investing in for 2023 is this one.
Key Financial Highlights
Dividend Yeild: 0.43%
Return on Equity over 5 Years: 7%
Profit in FY 23: – ₹ 70 Crore
Muthoot Finance Limited
An Indian NBFC called Muthoot Finance specializes in offering commercial and personal loans secured by gold jewelry. It provides a range of online digital loans and gold loans. Over the previous few years, the firm has maintained a high dividend payout rate.
Key Financial Highlights
Dividend Yield: 1.75%
Return on Equity over 5 Years: 23%
Profit in FY 23: ₹ 3,474 Crore
Relaxo Footwears Ltd
The largest non-leather footwear manufacturer in India is called Relaxo Footwears. It works in broad categories such canvas and sports shoes, rubber slippers, EVA and PU slippers, and more. Several well-known brands, including Flite and Bahamas, are owned by Relaxo. The business has maintained a healthy dividend payout % and is almost debt-free.
Key Financial Highlights
Dividend Yield: 0.27%
Return on Equity over 5 Years: 15%
Profit in FY 23: ₹ 154 Crore
Canara Bank Limited
A well-known Indian bank, Canara Bank offers a variety of financial services, including asset management, life insurance, retail and wholesale banking, and treasury operations. It offers internet banking, MSME banking solutions, personal, corporate, and non-resident Indian banking services. Over the previous five years, the bank has produced strong earnings.
Key Financial Highlights
Dividend Yield: 3.68%
Return on Equity over 5 Years: 7%
Profit in FY 23: ₹ 11,345 Crore
Crompton Greaves Consumer Electrical Limited
In India, Crompton Greaves is active in the lighting and electrical consumer durables (ECD) industries. It produces and sells a wide variety of goods. The firm has established itself as a desirable alternative among mid-cap shares by delivering a solid dividend payment % and substantially reducing its debt load.
Key Financial Highlights
Dividend Yield: 1.04%
Return on Equity over 5 Years: 29%
Profit in FY 23: ₹ 476 Crore
Reasons to Invest in Mid-Cap Stocks
Development Potential: When compared to bigger organizations, mid-cap companies can have better prospects for growth. They frequently experience expansion stages and have enormous development potential. They have the potential to become into major players in their sectors while not having the same level of development as large-cap corporations.
Underappreciated firms: Because mid-cap firms are prevalent in smaller markets, analysts and institutional investors may ignore them. This may lead to a decrease in valuation, giving investors the chance to purchase at enticing discounts before the market as a whole recognizes their full potential.
Flexibility and Agility: Compared to large-cap organizations, mid-caps are more sensitive to and nimble in adjusting to changing industry trends. Their adaptability enables them to seize growth possibilities fast, which might result in more development and a greater return on investment.
Lower Risk of Saturation: Mid-cap firms sometimes engage in less-explored or new markets with untapped potential. This gives them flexibility to grow and to enter new markets or consumer groups. By making investments in these businesses, investors may obtain market share and take part in the early phases of industry growth.
Low risk of saturation, high growth potential, and diversification Mid-cap companies are an attractive addition to a wide-ranging investing portfolio due to their advantages. Prior to investing, you must take your investment objectives and risk tolerance into account. If mid-cap stocks are of interest to you, you might want to create a demat account with a brokerage.
Disclaimer: This piece was written only for informational reasons. Quotes are used for illustration only; they do not constitute advice.
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