Midcap stocks have been a favorite among seasoned investors due to their excellent position in the stock market, where they may utilize the best of both ends, i.e., risk mitigation and significant rewards. They also help to diversify the holdings of investors. Most of the time, a company’s transition out of the small-cap tier attests to its increasing profitability and productivity up until it enters the large-cap deck. Both dividends and value appreciation, two components of returns, rise as a result of the process. Here are some of the best midcap stocks to buy in 2022.
Best Midcap Stocks To Buy In India
- Crompton Greaves – The demerged consumer division of Crompton Greaves (CG), Crompton Greaves Consumer Electricals (CGCEL), is the undeniable market leader in the fans category and a powerful branded competitor in the light consumer electrical market. The firm has a solid track record, with a return on equity of 32.78% over the previous three years. It also pays out a respectable dividend yield of 26.7%. It also aims to restore market value by introducing premium, cutting-edge items like the “Antibacterial Bulb.” In the consumer electrical market, it has a strong distribution network with more than 2,000 distributors and 100,000+ contact points. Growth is still being driven by the company’s investments in rural businesses.
- Escorts – Escorts is one of the top tractor producers in the nation because of its solid dealer network, favorable financing arrangements, frequent model debuts and refreshes, and focused marketing initiatives. The enterprise can operate more than 120,000 tractors each year at full capacity. The company’s partnership with Kubota Japan will help it expand its product line and open up new business opportunities.
- Relaxo Footwears – With its promoters having worked in the footwear industry for more than 30 years, Relaxo Footwears is one of the biggest participants in India’s non-leather footwear sector. The business has effectively expanded into new product categories, regions, and client groups throughout this time. It can create 7.5 Lac pairs per day at its eight production locations. Due to the company’s extensive pan-Indian network of distributors and retail outlets that distribute Relaxo products through more than 50,000 points of sales (POS), there is a high level of geographic and consumer variety. Over the last five years, the firm has produced impressive revenue and profit growth of 11.8% and 40.3%, respectively, while maintaining high return ratios.
- Polycab India – With a market share of approximately the organized wires and cables markets, Polycab India (PIL) is one of the top businesses in the Indian cable and wire sector. The company’s founders have been in the business for more than 40 years. PIL’s broad distribution network of over 4000 authorized dealers helps it maintain its market position. Its market share in West and South India accounts for a sizeable portion of its overall revenue share, which is over 70%. IL has a healthy interest coverage ratio of 34.8 and is net debt-free. PIL’s revenues and profits have increased dramatically over the previous five years at a CAGR of 17.3% and 31.3%, respectively.
- Deepak Nitrite (DNL) – Next only to China, the Indian specialty chemical sector has had one of the highest rates of development in the world, averaging 13% annual growth over the past five years to reach $25 billion. It serves a variety of sectors, including colorants, petrochemicals, agrochemicals, rubber, pharma, paper, etc. It is one of the top worldwide players in a number of specialized chemical products, such as Xylidines, Cumidines, Oximes, and Color Intermediates.