Looking for midcaps after the recent rally? Elara Capital suggests these 10 stocks

Power Finance Corp: As per the brokerage, PFC is the biggest beneficiary of power sector tailwinds, led by heavy capex allocation and change in the regulatory landscape. It is poised to record a 13-14% loan CAGR over FY23-26E underpinned by stabilising the distribution portfolio, growing renewables share, and expansion into the non-power (infrastructure & logistics) segment. Elara expects NIM to remain steady at 3.6% over FY23-26E, due to diversified liability and repricing coming with a lag. Moreover, as sizeable asset resolutions stand behind it and material ones in the pipeline in the range of ₹2600-3000 crore, it expects GNPA to climb down to less than 3% and credit cost to remain benign at less than 20 bps, translating into a healthy ROA of 2.7% and ROE of 17% over FY23-26E. The stock has surged 163% in the last 1 year and 118% in 2023 YTD.

Samvardhana Motherson International: SAMIL is a specialised full-system solutions provider and a strong tier-one automotive supplier, which caters to a range of customers in the automotive and other industries globally. As part of Vision 2025, it has set a goal of ‘3CX10’. 'It means no Customer, Component, or Country should contribute more than 10% to total revenue,' stated Elara. The stock has risen 21% in the last 1 year and 36% in 2023 YTD.

NHPC: NHPC is the largest hydropower development organisation in India, with capabilities to undertake activities from conceptualisation to commissioning of projects. Robust growth on account of a healthy project pipeline is expected in the near term. Regulated equity stood at ₹12,900 crore as on FY23, with cumulative regulated equity likely to reach ₹22,600 crore by FY26E, post-commissioning ongoing projects, noted Elara Capital. The stock has jumped 44% in the last 1 year and 35% in 2023 YTD.

Lupin: According to Elara, Lupin is a diversified generics pharmaceuticals firm with the US and India as key markets. The turnaround in profitability is aided by upcycles in the US market and key low-competition product launches there. It has a strong US pipeline and its chronic therapeutics are focused on high-quality and India-branded franchises, it added. The stock has surged 69% in the last 1 year and 53% in 2023 YTD.

Bharat Forge: Bharat Forge is a global leader in metal forming, and serves automotive, power, oil & gas, construction, mining, locomotive, marine, and aerospace sectors, driven by engineering excellence, world-class manufacturing, and R&D expertise with a presence in the US, the EU and domestic markets, stated Elara. The stock has gained over 40% in the last 1 year and 27% in 2023 YTD.

Aurobindo Pharma: ARBP is a regulated market generics pharmaceuticals firm, which is focused on the US and the EU markets. It will likely benefit from the upcycle in the US generics market. The new Pen-G plant under the PLI scheme and biosimilars foray are additional growth drivers, said Elara. The stock has advanced over 58% in the last 1 year and 98% in 2023 YTD.

Dalmia Bharat: Dalmia Bharat is India’s fourth-largest cement firm with current capacity of 43.7mn tonne; it is strongly positioned in the Northeast, East and South India. Management continues to focus on capacity addition, which augurs well for growth. Also, the lag impact of softness in fuel prices, strong premiumisation thrust, diverse product portfolio and rising share of low-cost renewable power are set to drive margin, explained the brokerage. The stock has added 40% in the last 1 year and 27% in 2023 YTD.

UNO Minda: Uno Minda is a global manufacturer of proprietary automotive solutions and systems, supplying Tier-1 solutions to OEM, with a strong electric vehicle-specific products portfolio with a presence in India, Asia, South as well as North America and the EU, said Elara. The stock is up just around 7% in the last 1 year and 20% in 2023 YTD.

JK Cement: JK Cement is a well-known firm with a strong presence in grey & white cement, wall putty, paints and others. The key market, North India, is likely to see limited capacity addition. It has better volume prospects, given access to incremental capacity, gradual completion of ongoing capex and better demand. The decline in fuel prices, expected annual savings of ₹50-60 crore from the newly added 22MW waste heat recovery system (WHRS) and further stabilisation of recently added Central India operations bode well for performance, noted Elara. The stock has gained over 16% in the last 1 year and 14% in 2023 YTD.

Zee Entertainment Enterprises: ZEE is a media conglomerate with interests in television, print, internet, film, and businesses related to mobile content, operating in 45 channels worldwide. The ZEE-Sony merger could bolster growth vs industry average, efficiently bundling the best channels, thereby enjoying an edge over competition and driving several advantages on the cost front. On the digital front, consolidation of over-the-top (OTT) apps may augur well as content variety will increase, mentioned the brokerage. The stock is up over 5% in the last 1 year and 16% in 2023 YTD.