Small-cap stocks are lucrative because they offer quick returns and because small companies have more potential to grow. On the other hand, large-cap stocks offer steady returns over a longer period of time. They are usually mature established businesses, with limited growth potential.
Mid-cap stocks offer a combination of both. That’s why a large chunk of investors prefer mid-cap stocks over smallcaps or bluechip stocks. Midcaps provide a balance between growth and stability.
As per the market regulator, companies that rank from 101 to 250 in terms of market capitalisation are known as midcap companies. The BSE Midcap index has underperformed the BSE Sensex in 2023 so far. While the overall performance of the midcap index may be negative, there are select mid-cap stocks that have outperformed the market and are already off to a good start in 2023.
Let’s take a look at the best performing midcap stocks of 2023 so far. By the way, we recently covered the smallcap version of the same, you can check it out here: Top Performing Smallcap Stocks of 2023 So Far. #1 PB Fintech (Policybazaar) The top gainer within the midcap space in 2023 so far is PB Fintech.
PB Fintech, the parent company of PolicyBazaar, offers a consumer-centric platform by partnering with financial services companies such as insurance companies to enhance their platforms from a consumer e-commerce perspective. In 2023 so far (between 1 January 2023 and 6 March 2023), the stock has already rallied 33%. View Full Image .
. . Share Via After a long wait, PB Fintech share price is finally on the rise on the back of improved financials.
For the quarter ended 31 December 2022 the company reported total sales of ₹ 6,790 million (m). On a QoQ basis, sales are up by 7% and 69% on a YoY basis. The key highlight of Q3 was the online platform’s reducing losses.
For the said quarter it reported a loss of ₹ 874 m. Losses were down by 53% on a sequential basis and 71% on a yearly basis. Insurance premiums for the company grew 70% on a yearly basis to ₹ 30.
3 billion (bn) in the December quarter. Credit disbursals were also up 57% on a YoY basis to ₹ 30. 2 bn while operating income came in at ₹ 6,100 m.
PolicyBazaar expects to become EBITDA positive by the fourth quarter and it seems the market has factored that in the company’s share price. #2 Persistent Systems Second on the list is Persistent Systems. Persistent Systems is a global company specialising in software products services and technology innovation.
The company offers complete product life cycle services. In 2023 so far (between 1 January 2023 and 6 March 2023), the stock has rallied 26%. The company's Q3 earnings were in line with estimates, which has changed the sentiment for the IT company.
For the quarter ended 31 December 2022, Persistent Systems reported total sales of ₹ 22,021 m, higher by 7% on a sequential basis and 45% on a yearly basis. MINT PREMIUM See All Premium When Parag Parikh's wife stepped up to help him become . .
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. Premium Money lessons this shark learnt from her mother Premium Want economic growth? Elevate more women to the top Net profit also saw a decent growth of 8% sequentially and 35% on a YoY basis. The board of directors also declared an interim dividend of ₹ 28 per share for the financial year 2022-2023.
Persistent Systems recorded its highest order bookings in the December 2022 quarter. The largest deal in Q3 was a US$ 70 m (about ₹ 5,782. 8 m) total contract value by a US online retailer that followed large deals from Software AG in the prior quarters.
It is aiming for a US$ 2 bn (about ₹ 164. 1 bn) revenue run rate by financial year 2023 (doubling in four years), with organic and inorganic sources contributing US$ 100-150 m (about ₹ 8,204–12,306. 4 m).
The European share of revenue is expected to reach 12–15% of total revenue (including inorganic) from 9% at present. Also, with high interest rates, the Indianrupee is expected to fall against the dollarwhich will benefitIT stocks. Most IT stocks have fallen by 30-40% from their peaks in 2022 and offer a good risk reward ratio on the valuations front.
The recession impact in the US is mostly priced in to Indian IT stocks. #3 Oil India Third on the list in Oil India. Oil India is a central public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, Government of India.
The Ministry of Petroleum and Natural Gas oversees its operations, with its headquarters in Duliajan, Assam. It is engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of liquid petroleum gas. In 2023 so far (between 1 January 2023 and 6 March 2023), the stock has rallied 26%.
View Full Image . . Share Via The company’s robust financial performance in Q3 is the main reason driving the rally.
For the said quarter, the company’s total sales are only 2% higher on a sequential basis and 31% up on a YoY basis. It recorded total sales of ₹ 107,121 m. However, the highlight of Q3 results is the sharp rise in profits.
State-owned Oil India reported its highest-ever quarterly net profit in the third quarter ended December 2022 on the back of a rise in crude oil and natural gas prices. Total profit came in at ₹ 28,000 m, up 62% on a QoQ basis and 114% on a YoY basis. The rise in profitability was aided by a higher realisation of crude and gas that the firm produces and sells.
Also, output increased, helping both the top line and bottom line. The board of the company has also declared an interim dividend of ₹ 10 per share. Oil India is one of the high dividend yield stocks in India.
#4 ABB India Established in 1949,ABB Indiais one of the most reputed names in the Indian infrastructure sector. Its operations can be divided into four major segments: electrification, process automation, motion, and robotics. ABB India follows the calendar year format and the company's financial year ends on 31 December 2022.
In 2023 so far (between 1 January 2023 and 6 March 2023), the stock has rallied 24%. View Full Image . .
. Share Via ABB India share price rallied after it reported a steady financial performance. For the quarter ended 31 December 2022, the company reported total sales of ₹ 24,969 million (m).
On a QoQ basis, sales are up by 15% and 30% on a YoY basis. For the said quarter it reported a profit of ₹ 3,059 m. Profits increased by 51% on a sequential basis and 58% on a yearly basis.
The company has achieved a significant milestone in order booking by reaching ₹ 100. 3 bn in 2022 and ₹ 23. 4 bn in the fourth quarter of 2022.
The growth during the fourth quarter of 2022 was led by large value orders in industrial solutions and segments like data centres in electrification. #5 Polycab India Polycab India is engaged in the business of manufacturing and selling wires and cables and fast-moving electrical goods under the Polycab brand. The business activities are carried out through wires and cables, fast-moving electrical goods, copper, and other segments.
It generates the highest revenue from the wires and cables segment. In 2023 so far (between 1 January 2023 and 6 March 2023), the stock has rallied 19%. View Full Image .
. . Share Via Revenue of the country’s second-largest listed consumer electrical maker was up 13% on a QoQ basis and 11% on a YoY basis.
The total revenues for Q3 stood at ₹ 37,549 m. Polycab India’s Q3 profit came in at ₹ 3,616 m, which is 33% higher sequentially and 46% higher on a YoY basis. The net profit was driven by an 18-20% volume uptick in the wires and cables segment amid a high base and falling prices of commodities.
The segment reported an 11% growth with volumes offsetting the price corrections. The wires and cables segment is the largest business of Polycab accounting for 87% of consolidated revenues. The company indicated there is demand from both business-to-business as well as the business-to-consumer segments.
The key driver for the wires segment is the growth in the real-estate sector while cable demand is being led by the increase in private and government capital expenditure. Going ahead, the company expects good volume growth in Q4 on the back of a strong demand environment. Which other midcap stocks are rising in 2023? Apart from the above, here are other midcap stocks that have rallied in 2023 so far.
View Full Image . . .
Share Via Investment Takeaway The five midcap stocks highlighted above rallied because of their strong Q3 performance. It looks like they are poised for a better quarter as the financial year 2022-23 comes to end. However, the overall market scenario is quite volatile.
The Adani-Hindenburg saga along with inflation concerns has left a doubt among investors. Every investment carries a potential of return and risk. The key to investing successfully in any type of company, small or big, is to minimise your risks.
Focus on building a sound investment strategy. If you don't have one, start working towards it. If you do, check to see if your investments are on track and continue to reflect your investment horizon, financial situation, and risk tolerance.
Disclaimer:This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from Equitymaster.
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