Best Five Indian Mid Cap Stocks in September 2024

Mid Cap Stocks are known for their high growth potential, often providing investors with a balance between the stability of large-cap stocks and the aggressive growth of small-cap stocks. According to SEBI, mid-cap companies are ranked 101st to 250th based on their market capitalisation. These companies are generally more stable than small-cap firms and have the potential to grow into large-cap stocks over time, making them attractive to investors seeking long-term returns.

In this blog, we will dive into the top five mid-cap stocks in India for September 2024 based on their 5-year CAGR, financial performance, and market potential. We will also provide a comprehensive overview of mid-cap investment options, including best mid-cap ETFs, top large and mid-cap funds, and best stock screeners to help you make informed investment decisions.

Best Mid Cap Stocks in September 2024 – Based on 5-Year CAGR

Below is a list of the top five mid-cap stocks that have demonstrated solid performance, showcasing their growth potential over the past five years.

Overview of Best Mid-Cap Stocks in India

1. Lloyds Metals and Energy Ltd

Lloyds Metals and Energy Ltd stands as one of India’s largest producers of sponge iron and a major player in power generation and mining operations. With a significant boost in iron ore mining operations from 10 MTPA to 55 MTPA, Lloyds Metals has positioned itself as a growth leader in the mining sector. The company’s robust revenue growth, coupled with strong profit margins, highlights its potential as a lucrative mid-cap investment.

• Market Cap: ₹39,711.85 crore
• 5Y CAGR: 132.31%
• 1Y Return: 34.45%
• Earnings Per Share (EPS): ₹26.73
• Return on Equity (ROE): 49.71%

2. Dixon Technologies (India) Ltd

Dixon Technologies is a pioneer in India’s Electronic Manufacturing Services (EMS) sector. The company operates across various sectors, including consumer electronics, home appliances, and security systems. Recently, Dixon Technologies formed a joint venture with Imagine Marketing to manufacture wireless audio solutions, further driving its growth. Despite facing a slight dip in revenue in Q2 2024, Dixon remains a strong contender in the mid-cap space, with impressive long-term growth potential.

• Market Cap: ₹77,953.02 crore
• 5Y CAGR: 91.61%
• 1Y Return: 157.36%
• EPS: ₹27.70
• ROE: 11.89%

3. Fertilisers & Chemicals Travancore Ltd (FACT)

Fertilisers and Chemicals Travancore Ltd, or FACT, has been a crucial player in India’s fertiliser sector for decades. It continues to grow its presence in the market, despite facing some challenges in profitability. FACT’s strong return on equity (ROE) and stable revenue make it an attractive option for investors looking for growth in the agricultural sector.

• Market Cap: ₹64,454.84 crore
• 5Y CAGR: 90.79%
• 1Y Return: 93.12%
• ROE: 35.77%

4. Jindal Stainless Ltd

Jindal Stainless Ltd is one of the leading producers of stainless steel in India, providing high-quality stainless steel products to various industries. The company has seen consistent revenue growth, supported by strong demand in sectors like construction and consumer goods. With an attractive valuation and healthy earnings growth, Jindal Stainless is well-positioned for long-term success.

• Market Cap: ₹62,823.94 crore
• 5Y CAGR: 83.72%
• 1Y Return: 48.56%
• EPS: ₹29.67
• ROE: 17.83%

5. Persistent Systems Ltd

Persistent Systems is a leading software engineering and strategy service provider, helping businesses transform and grow through digital technology. With partnerships with key players such as Salesforce and AWS, Persistent Systems has solidified its position as a leader in IT consulting and cloud services. Its remarkable revenue growth and high ROE make it a solid pick for mid-cap investors.

• Market Cap: ₹82,003.58 crore
• 5Y CAGR: 79.64%
• 1Y Return: 85.48%
• EPS: ₹64.27
• ROE: 20.72%

Mid-Cap ETFs and Index Funds in India

For investors seeking diversification and a more hands-off approach to mid-cap investments, Mid-Cap ETFs and Index Funds provide excellent options. Here are some of the best options available in 2024:

Best Mid Cap ETFs in India

1. Nippon India ETF Nifty Midcap 150
2. Motilal Oswal Nifty Midcap 150 ETF
3. ICICI Prudential Midcap Select ETF

Best Mid Cap Index Funds in India

1. UTI Mid Cap Fund
2. Nippon India Growth Fund
3. Kotak Emerging Equity Scheme

Top 5 Large and Midcap Funds

Large and mid-cap funds invest in both large-cap and mid-cap stocks, offering investors a blend of growth and stability. Below are the top-performing funds in this category:

1. HDFC Large and Midcap Fund
2. SBI Large and Midcap Fund
3. ICICI Prudential Large and Midcap Fund
4. Axis Growth Opportunities Fund
5. Mirae Asset Emerging Bluechip Fund

Best Mid Cap Mutual Funds by Value Research

Value Research is a trusted source for mutual fund analysis. According to their ratings, the top mid-cap mutual funds for 2024 are:

1. Axis Midcap Fund
2. Kotak Emerging Equity Fund
3. DSP Midcap Fund
4. Nippon India Growth Fund
5. HDFC Mid-Cap Opportunities Fund

Best Small Cap Mutual Funds 2024

Small-cap mutual funds focus on smaller companies with high growth potential but come with higher risks compared to mid-cap and large-cap funds. Here are the best small-cap funds in 2024:

1. SBI Small Cap Fund
2. Nippon India Small Cap Fund
3. Kotak Small Cap Fund
4. Axis Small Cap Fund
5. ICICI Prudential Smallcap Fund

Best ELSS Funds to Invest in 2024

Equity Linked Savings Scheme (ELSS) funds are popular for their tax-saving benefits. These funds allow investors to claim deductions under Section 80C of the Income Tax Act. Here are the best ELSS funds to consider in 2024:

1. Mirae Asset Tax Saver Fund
2. Axis Long Term Equity Fund
3. Canara Robeco Equity Tax Saver Fund
4. Kotak Tax Saver Fund
5. Invesco India Tax Plan

Best Stock Screener India

To identify high-potential mid-cap stocks, investors often rely on stock screeners that filter companies based on financial metrics, growth potential, and market trends. The following are some of the best stock screeners for the Indian market:

1. Screener.in
2. Tickertape
3. Moneycontrol Stock Screener
4. ET Markets Stock Screener
5. Zerodha Stock Screener

Upcoming IPOs in India 2024

Investors looking to diversify their portfolios with upcoming IPOs should keep an eye on these high-profile launches in 2024. Participating in IPOs can provide early exposure to high-growth companies.

1. Mamaearth IPO
2. Swiggy IPO
3. Ola Electric IPO
4. BYJU’s IPO
5. Zomato’s Second Public Offering

Conclusion

Mid-cap stocks present a compelling investment opportunity for investors seeking high growth potential with moderate risk. As highlighted in this article, Lloyds Metals and Energy Ltd, Dixon Technologies, Fertilisers & Chemicals Travancore Ltd, Jindal Stainless Ltd, and Persistent Systems are among the best mid-cap stocks in India for September 2024, based on their 5-year CAGR and overall financial health. However, it’s essential to conduct thorough research, diversify your portfolio, and consider both the risks and potential rewards when investing in mid-cap stocks.

For those who prefer a more passive investment strategy, Mid-Cap ETFs, index funds, and mutual funds offer excellent alternatives to direct stock investment. Utilizing stock screeners and staying updated on the latest IPOs can further help you make informed decisions and capitalise on growth opportunities in the mid-cap space.

Invest wisely and consider your financial goals and risk tolerance to find the best mid-cap stocks and funds that suit your portfolio.