Last Updated on Nov 11, 2022 by Nikitha

Usually, in the stock exchanges, the companies are divided into three major categories – large-cap, mid-cap and small-cap. These are differentiated as per their market value. In this article, find the best mid-cap stocks in 2022 based on different parameters along with their pros and cons.

What is a midcap stock?

The shares of a company with a market cap of more than Rs. 5,000 cr., and less than Rs. 20,000 cr., are called mid-cap stocks. Mid-cap stocks are larger than small-cap and smaller than large-cap stocks. They are less volatile as compared to small-cap stocks. As per SEBI, in both NSE and BSE, the companies ranked from 101 – 250 are mid-cap stocks. 

Click here to learn more about the difference between small-cap, mid-cap and large-cap stocks

Best mid-cap stocks list

Here’s the list of top mid-cap stocks based on different parameters. 

Midcap stocks list based on total debt 

NameSub-SectorMarket Cap (Rs. in cr.)PE Ratio Total Debt
AU Small Finance Bank LtdConsumer Finance42,814.1937.89
Bank of India LtdPublic Banks31,576.949.041
Canara Bank LtdPublic Banks56,981.839.30
Federal Bank LtdPrivate Banks29,160.7214.80
IDFC First Bank LtdPrivate Banks35,716.017269.96
Indian BankPublic Banks33,309.328.042
Punjab National BankPublic Banks49,494.51112.82
Union Bank of India LtdPublic Banks43,776.568.31
Yes Bank LtdPrivate Banks41,467.8438.97
Nippon Life India Asset Management LtdAsset Management16,738.9422.490.00

Note: The information is dated 10th November 2022. We have listed the top 10 NSE mid-cap stocks based on the following parameters:

  • Nifty Midcap 100
  • Sorted by total debt

Midcap stocks list based on net profit margin

NameSub-SectorMarket Cap (Rs. in cr.)PE RatioNet Profit Margin (%)
Indian Energy Exchange LtdPower Trading & Consultancy12,779.8741.3262.88
Nippon Life India Asset Management LtdAsset Management16,738.9422.4948.46
Sun Tv Network LtdTV Channels & Broadcasters21,828.3513.3042.77
ICICI Securities LtdInvestment Banking & Brokerage17,472.7712.6440.21
Oracle Financial Services Software LtdSoftware Services26,152.7913.8535.27
Oberoi Realty LtdReal Estate33,118.5131.6335
Indiamart Intermesh LtdOnline Services14,679.0749.3234.38
Clean Science and Technology LtdSpecialty Chemicals16,505.0672.2431.96
Hindustan Zinc LtdMining – Diversified12,3442.6912.8231.41
Emami LtdFMCG – Personal Products20,570.8224.5225.52

Note: The information is dated 10th November 2022. We have listed the top 10 NSE mid-cap stocks based on the following parameters:

  • Nifty Midcap 100
  • Sorted by net profit margin

Midcap stocks list based on earnings per share 

NameSub-SectorMarket Cap (Rs. in cr.)PE RatioEarnings Per Share (Rs.)
MRF LtdTires & Rubber36,905.3455.151577.95
Page Industries LtdApparel & Accessories55,302.52103.07481.034
Honeywell Automation India LtdElectronic Equipments34,124.52100.62383.57
Abbott India LtdPharmaceuticals40,845.9451.14375.87
Oracle Financial Services Software LtdSoftware Services26,152.7913.85219.24
Alkem Laboratories LtdPharmaceuticals38,111.3423.16137.63
Coforge LtdIT Services & Consulting22,440.7533.91108.92
Shriram Transport Finance Company LtdConsumer Finance34,499.3812.68103.94
Indiamart Intermesh LtdOnline Services14,679.0749.3297.79
L&T Technology Services LtdSoftware Services38,226.1839.9490.89

Note: The information is dated 10th November 2022. We have listed the top 10 NSE mid-cap stocks based on the following parameters:

  • Nifty Midcap 100
  • Sorted by Earnings Per Share (EPS)

Features of mid-cap stocks

The features of mid-cap stocks are as follows: 

  • Midcap stocks have immense growth potential, which can offer the investors good returns. 
  • Midcap stocks are less affected by market fluctuations compared to small-cap stocks. However, they are considered high risk in comparison with large-cap stocks. 
  • Midcap stocks are relatively liquid as compared to small-cap stocks. The popularity for mid-cap stocks is more than small-cap stocks, which makes it easier for the investor to buy or sell such stocks. 
  • Mid-cap companies lie in a broad spectrum. Some companies can be in the development stage, which is stable but offers minimal returns. While some mid-cap companies can be in a growing phase and offer high returns. 

Who should invest in midcap stocks?

Though mid-cap stocks may appear as a balance in terms of risk and returns, compared to small-cap and large-cap, these stocks may not suit everyone. Investors who can consider investing in mid-cap stocks are as follows: 

  • Investors looking for long-term investment options can consider mid-cap stocks as they help gain favourable returns in the long term. 
  • Investors looking for capital appreciation can consider midcap stocks. 
  • Investors with a moderate risk appetite can consider investing in midcap stocks. 

Advantages of midcap stocks

  • Mid-cap companies have higher growth potential and chances of raising funds through credit than small-cap companies. These companies also expand aggressively. 
  • Mid-cap stocks in the growing phase can offer good returns. 
  • As mid-cap stocks are less popular when compared to large-cap stocks, the price of these stocks is less. 
  • As mid-cap stocks are highly volatile, they are considered a good option for long-term investing. 

Disadvantages of midcap stocks 

  • Large-cap companies are considered stable due to their proven experience and track record. In the case of mid-cap companies, the stability is not proven as they are in the growth phase. Hence, an investor needs to analyse the company’s management and financial history. 
  • Mid-cap stocks are highly volatile when compared to large-cap stocks. Though the probability of providing good returns is high, there are equal chances of generating negative returns. 
  • Low-ranking mid-cap companies are highly prone to value-trap. When a company operates with limited cash flow and low profits it is considered value-trap. In simple terms, the company can be in a stagnant position. Such midcap companies may not even trade. 

FAQs 

1. What is mid-cap stock in India?

As the name suggests, mid-cap stocks are the stocks in between large-cap and small-cap. Mid-cap companies have a market value between Rs. 5,000 cr. to Rs.20,000 cr. In the stock exchanges, these companies are ranked from 101 – 250. 

2. How to get the list of mid-cap IT stocks?

You can get the list of midcap IT stocks on Tickertape by following the steps below: 
– Login to Tickertape 
– Open the Stock Screener 
– Select ‘Nifty Midcap 100’ under the ‘Stock Universe’
– Select ‘Informational Technology’ in ‘Sector’

3. What are the 100 best mid-cap stocks? 

You can get the list of the 100 best mid-cap stocks on Tickertape. 
– Login to Tickertape 
– Open the Stock Screener 
– Select ‘Nifty Midcap 100’ under the ‘Stock Universe’. 

Nikitha
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