Which Are These Top 5 Mid Cap Stocks?

introduction

As per the categorisation done by SEBI, the companies from 101 to 250 ranking according to the market capitalization are called as the Mid Cap companies. From these 150 companies which are the top 5 Mid Cap companies in which mutual funds have invested the maximum amount of money? Which are the top mutual funds which have invested in these stocks? This is exactly what we will be studying today.

In our earlier article, we have seen the top 5 large cap stocks with highest MF holding. Now, let us see top 5 Mid Cap companies holding highest % stake by Mutual Funds.

Top 5 Mid Cap Stocks

Top 5 Mid Cap Stocks with Highest MF Holding
Top 5 Mid Cap Stocks with Highest MF Holding

1. RBL Bank

RBL Bank
RBL Bank
  1. Ratnakar Bank Limited (RBL) is a scheduled commercial bank, headquartered in the Mumbai region of Maharashtra, India. It was founded in August 1943. It is 9th largest private sector bank as per market capitalization.
  2. Key Financials of the company:
  • PE ratio – 34.00
  • 5 Year Net Profit Growth – 47%+
  • 5 Year Sales Growth – 38%+
  • Gross NPA – 1.38%
  • Net NPA – 0.72%
  • Promoter Holding – 0%

The 5 Year net profit & sales growth are very excellent. The NPA’s are also under control.

2. Voltas ltd.

Voltas Ltd.
Voltas Ltd.
  1. One of the world’s premier engineering solutions provider and project specialist, Voltas Limited is a company in India specialising in air conditioning and cooling technology. It is also involved in other business activities. Tata Group is the parent organization of Tata Group.
  2. Key Financials of the company:
  • PE ratio – 35.70
  • 5 Year Net Profit Growth – 24%+
  • ROCE – 21.69%
  • ROE – 15.86%
  • Promoter Holding – 30.30%
  • The air conditioning penetration in India is less than 3%, as per a study. Thus, Voltas can be a long term company.
  • HDFC mid-cap opportunities and hybrid equity funds, both are manged by Mr. Chirag Setalvad.
  • A large cap fund only has the obligation to give 80% of the allocation to large cap stocks. The rest 20% allocation can be given to mid-cap or small cap stocks.

3. The Indian Hotels Company Ltd

The Indian Hotels Company Ltd.
The Indian Hotels Company Ltd.
  1. It is an Indian hospitality company that manages a portfolio of hotels, resorts, jungle safaris, palaces, spas and in-flight catering services. It is a subsidiary of the Tata Group conglomerate. IHCL was founded in 1899 by Jamsetji Tata and is headquartered in Mumbai, Maharashtra. It has the brands like Taj Hotels and Ginger to its name.
  2. Key Financials of the company:
  • PE ratio – 67.26
  • FY 13 to FY 17 – Loss Making Years
  • FY 18 Positive Journey Started
  • Promoter Holding – 39.09%
  • The tourist industry of India is getting developed rapidly. First, it used be run on the wants of the people but now it is running on the needs of the people. Thus, this can be very positive for this (tourism) sector and also for this stock in general.
  • The Pe ratio is high right now. The reason being is that up till FY 2017, it used to be a loss making company. But FY 2018 was a turnaround year for the company and now the coming decade might be very good for the company.
  • This stock is looking like a favourite among the institutional investors in the recent times.
  • Reliance and HDFC AMC’s seem to be very positive about the company and its performance.

4. cummins india ltd.

Cummins India Ltd.
Cummins India Ltd.
  1. An American Fortune 500 corporation, Cummins Inc. designs, manufactures, and distributes engines, filtration, and power generation products. Cummins India ltd is part of this company.
  2. Key Financials of the company:
  • PE ratio – 28.11
  • Promoter Holding – 51%
  • Debt-to-Equity (DE) ratio – 0.06
  • It is virtually a debt-free company. Even after having a capital-intensive business the company has such low De ratio and is almost debt free.
  • New rules are going to released soon by the Government of India regarding pollution norms. Hence, the changes in the regulations and engines specification may happen.

5. the federak bank ltd.

The Federal Bank Ltd.
The Federal Bank Ltd.
  1. Federal Bank is the 11th largest private sector, scheduled commercial bank, according to market capitalization, in India, headquartered in Aluva, Kerala.
  2. Key Financials of the company:
  • PE ratio – 17.82
  • 5 Year Net Profit Growth – 1%+
  • 5 Year Sales Growth – 9.6%+
  • Gross NPA – 3.14%
  • Net NPA – 1.72%
  • Promoter Holding – 0%
  • Federal bank doesn’t seem to be a well-managed bank. The NPA’s of the bank are a big concern.
  • The combination of 0% promoter holding and higher NPA’s can be a negative sign.

summary

  1. These were the 5 mid cap stock in which the mutual fund have invested the highest amount of money.
  2. The mid-cap category saw a lot of correction in the last 6-9 months.
  3. These stocks can be kept under radar by the investors. Though we don’t feel very strongly about the stock of Federal bank.

notes

  • The numbers that are used are approximate and have been rounded for presentation purposes.
  • We are not in any way saying that these are bad companies, or the stocks of these companies are bad.
  • We are also not suggesting anyone to immediately go and buy these stocks or invest in the stock markets.
  • Only an analysis has been presented here. No judgments or final statements are being made here.

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