Mid cap stocks, as their name suggests, are a category of stocks that fall between large cap and small cap companies in terms of market capitalization. These stocks are characterized by having a market capitalization in the range of Rs 5,000 Crore to Rs 20,000 Crore. Market capitalization is calculated by multiplying the current market price of a company’s share by the total number of outstanding shares held by investors. This calculation provides an average market value for the company.
To better understand the concept of market capitalization, let’s consider an example in the context of the Indian rupee. Let’s imagine a company called ABC Enterprises, which has 1,000,000 outstanding shares priced at Rs 1,000 per share. To calculate its market capitalization, we multiply the outstanding shares by the current market price:
Market Capitalization = Outstanding shares x Current market price of the share
In the case of ABC Enterprises:
Market Cap = 1,000,000 x Rs 1,000
Market Cap = Rs 10,00,00,000
So, ABC Enterprises’ market capitalization is Rs 10,00,00,000.
Investing in mid cap stocks can offer several advantages to investors. One key advantage is diversity. Mid cap stocks occupy the space between large cap and small cap companies, providing a balanced mix of stability and potential for high returns. By carefully selecting mid cap stocks, investors can benefit from companies that have the potential for significant growth over time.
Another advantage of mid cap stocks is their potential for value appreciation. Some mid cap stocks have experienced exponential growth, rewarding investors with substantial capital gains. Additionally, mid cap companies often pay dividends to shareholders, providing an additional source of income.
One attractive aspect of mid cap stocks is their affordability. Due to being relatively overlooked compared to large cap stocks, mid cap stocks often have lower prices. This affordability allows investors to acquire a larger number of shares for a lower cost compared to investing in large cap stocks.
In terms of risk, mid cap stocks generally carry less risk compared to small cap companies. At the same time, small cap stocks can be highly volatile and subject to greater market fluctuations, mid cap stocks tend to have a more stable track record and exhibit a moderate level of risk.
Moreover, mid cap stocks generally offer higher liquidity compared to small cap stocks. This means that it is generally easier for investors to buy and sell shares of mid cap companies without significantly impacting the stock’s price.
Now, let’s take a closer look at some specific examples of mid cap companies in India:
1. Mazagon Dock Shipbuilders Ltd: Mazagon Dock is a premier shipyard and defense contractor in India. With a rich heritage and expertise spanning several decades, the company specializes in the construction and maintenance of naval ships and submarines. Mazagon Dock plays a vital role in strengthening India’s maritime capabilities by delivering technologically advanced and robust vessels to the Indian Navy and other domestic and international customers.
2. Fertilisers and Chemicals Travancore Ltd (FACT): Established in 1943, FACT is a leading fertilizer and chemical manufacturing company in India. The company has become renowned for its production of various types of fertilizers and chemicals, including ammonia, urea, and caprolactam. FACT’s products play a crucial role in supporting India’s agricultural sector and addressing the nation’s fertilizer and chemical needs.
3. Rail Vikas Nigam Ltd (RVNL): RVNL is a government-owned company that specializes in the development of railway infrastructure and the execution of related projects. Since its establishment in 2003, RVNL has completed several significant projects, including the doubling of railway tracks, electrification of railway lines, and construction of railway bridges across India. RVNL’s efforts contribute to enhancing the efficiency and safety of the country’s rail network.
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4. Jindal Stainless Ltd: Jindal Stainless is a prominent stainless-steel company based in India, known for its manufacturing expertise. The company operates a state-of-the-art stainless-steel plant in Odisha and offers a diverse product portfolio catering to various industries both domestically and internationally. With a robust distribution network, Jindal Stainless is committed to delivering high-quality stainless-steel products that meet the demands of its customers.
5. IDFC First Bank Ltd: IDFC First Bank is an India-based banking company offering a comprehensive range of financial services. The bank operates through three segments: Treasury, Corporate/Wholesale Banking, and Retail Banking. With a strong branch network and ATMs spread across the country, IDFC First Bank provides loans, transaction services, and investment options to both corporate and retail customers.
The below table shows the mid cap stocks in India based on the highest market capitalization.
| Midcap Stocks | Sub Sector | Market Cap | Close Price |
| Bosch Ltd | Auto Parts | 56,645.02 | 19,201.70 |
| Hero MotoCorp Ltd | Two Wheelers | 56,426.29 | 2,823.55 |
| Indian Hotels Company Ltd | Hotels, Resorts & Cruise Lines | 56,361.49 | 396.8 |
| Max Healthcare Institute Ltd | Hospitals & Diagnostic Centres | 56,283.91 | 579.4 |
| Canara Bank Ltd | Public Banks | 55,630.30 | 306.65 |
| One 97 Communications Ltd | Business Support Services | 55,360.63 | 872.95 |
| Power Finance Corporation Ltd | Specialized Finance | 55,124.90 | 208.8 |
| IDFC First Bank Ltd | Private Banks | 54,461.15 | 82.2 |
| Adani Wilmar Ltd | FMCG – Foods | 54,391.55 | 418.5 |
| Astral Ltd | Building Products – Pipes | 53,328.80 | 1,985.35 |
It is important to note that the information provided about these companies is based on the given text and may not reflect the current market conditions or the most up-to-date information about these specific companies. Therefore, it is always recommended to conduct thorough research and analysis before making any investment decisions.
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