Improving macroeconomic fundamentals, consistent FPI inflows, a healthy performance by India Inc. in Q4 so far, a pause in rate hikes by the Reserve Bank of India, falling crude oil prices, and easing inflationary pressures have collectively supported Indian stock markets to trade near record highs.
The Indian benchmark indices, the Nifty 50 and S&P BSE Sensex, have recorded year-to-date gains of 2.71% and 3.28%, respectively. Both indices are currently 1.5% away from their all-time highs registered in December last year.
Mid-cap stocks in particular have displayed exceptional performance, surpassing their larger counterparts, with the BSE Midcap index experiencing a 6.28% rally in the current year so far. Moreover, the index marked a new all-time high of 26,944 during Monday's trading session.
In this article, we will look at some of the mid-cap stocks that rewarded their shareholders with handsome returns.
Varun Beverages, one of the largest franchisee of PepsiCo in the world (outside USA), topped the list with a return of 132% over the last one-year period. During this period, the company's shares have grown from ₹726.40 apiece to ₹1,691. This stunning surge also resulted in a whopping 677% gain over the past five years.
Following its outstanding performance in the March quarter, the stock has been consistently achieving new record highs, demonstrating strong upward momentum in recent days. On May 26, the stock marked a new life-time high of ₹1,747.
CG Power and Industrial Solutions stood as the second top gainer in the list. The company's shares, which were trading at ₹170 apiece a year ago, have seen a remarkable upward trend, surging by an impressive 126%, to reach the current level of ₹383.75.
For the March-ending quarter, the company's consolidated net profit surged by 281.75% YoY to ₹426.22 crore. This Murugappa Group stock gained by an astounding 6814% over the last three-year period.
IDFC First Bank emerged as the third top gainer in the BSE Midcap index. In the last one year, the stock has climbed from ₹35.60 apiece to ₹70.15, generating a return of over 97%.
The bank posted a huge surge in its standalone net profit to ₹803 crore for the quarter ended March 2023, ending FY23 with a record net profit of ₹2,437 crore, an increase of over 1580% over FY22's net profit of ₹145 crore.
| Scrip Name | Gain in last one year |
| Varun Beverages | 132% |
| CG Power and Industrial Solutions | 126% |
| IDFC First Bank | 97% |
| Union Bank of India | 96% |
| TVS Motor Company | 80% |
| Tube Investments of India | 80% |
| Cummins India | 72% |
| ABB India | 69% |
| Indian Hotels Company | 69% |
| Hindustan Aeronautics | 68% |
| Mahindra & Mahindra Financial Services | 67% |
| Aditya Birla Capital | 66% |
| Bharat Heavy Electricals | 62.25% |
| Cholamandalam Investment & Finance Company | 61% |
| Bank of India | 60% |
| Power Finance Corporation | 60% |
| IDBI Bank | 58.5% |
| Indian Railway Finance Corporation | 58% |
| Supreme Industries | 57% |
| Dalmia Bharat | 57% |
| General Insurance Corporation | 56.5% |
| Canara Bank | 55% |
| REC Ltd | 51% |
| Glenmark Pharmaceuticals | 49.5% |
| Source: Trendlyne |
Another top gainer that stole the limelight in the BSE Midcap index was Union Bank of India. From ₹35.85 in May last year, the stock has zoomed 169% to hit a new 52-week high of ₹96.4. Since then, the stock has corrected sharply, but it is still up by 96% in the last one year.
ABB India was another star performer in the mid-cap space. The company develops and sells products and system solutions to utilities, industries, channel partners, and original equipment manufacturers in India and internationally.
The company's shares have skyrocketed from ₹2,384 apiece to trade at the current position of ₹4,031, rewarding their stakeholders with a gain of 69%. Long-term investors enjoyed a multi-bagger return as the stock produced a staggering 455% gain in just 3 years.
Investors in Tube Investments of India enjoyed a return of 80% as the stock price went from Rs. 1,591 to ₹2,865 in a year. Further, investors who held the stock for the long term saw significant gains, as the stock generated a return of almost 821% over the past three years and 1192% in the last five years.
The stock has demonstrated a consistent track record of delivering positive annual returns over the past five years. In CY18, CY19, and CY20, it yielded a return of 32%, 35.19%, and 66.29%, respectively. The trend continued with remarkable returns of 119% in CY21 and 58.17% in CY22.
Other stocks, including TVS Motor Company, Cummins India, Indian Hotels Company, Hindustan Aeronautics, Mahindra & Mahindra Financial Services, Aditya Birla Capital, Bank of India, Power Finance Corporation, IDBI Bank, IRFC, Supreme Industries, Dalmia Bharat, General Insurance Corporation, Canara Bank, REC Ltd., and Glenmark Pharmaceuticals, have also rallied between 49.5% and 80% over the last one year.
Note: This article is provided for informational purposes only and should not be considered as financial advice.
