In 2017, mid cap and small cap stocks have given multibagger returns compared to large-cap heavyweights. The trend is likely to continue in 2018. Mid Cap and Small Cap stocks likely to remain the first choice for the retail investors in 2018. However, it is very difficult to identify good midcap stocks for the investment. If you are looking for midcap stocks with good upside potential here is a list of Mid Cap stocks for investment in 2018 recommended by leading brokerage houses.
Prior to discussing 18 best mid-cap stocks for investment in 2018, let’s take a look at top mid-cap stocks of 2017. Best Midcap stocks of 2017 include Future retail, India Bull Real Estate, L&T Finance, Jindal Steel, Dewan Housing, TVS Motors and Vakrangee.
CAGR returns given by these stocks is given below.
18 Best Mid Cap Stocks for Investment in 2018 By Leading Brokerage Houses
Best Mid Cap stocks by Edelweiss for 2018
Dilip Buildcon is first best mid-cap stock for investment recommended by Edelweiss & Karvy. Dilip Buildcon is one of the largest road engineering planning and construction contractor. Dilip Buildcon holds large order-book. The financial result of this stock is very good. DBL is likely to get benefit from upcoming housing and infrastructure development.
Second midcap stock recommended by Edelweiss is Everest Industries. Everest Industries is one of the favorite stock of Vijay Kedia. Everest Industries has a big capacity for building material products. EIL is expected to deliver very good sales volume in 2018.
GIC Housing Finance
The third midcap stock is GIC Housing Finance. GIC housing finance is housing finance company. Fundamental of the company is very good. The company is able to maintain net profit margin YOY. A company is also maintaining healthy dividend pay-out YOY.
Kirloskar Brothers is engage in the manufacturing of pumps. It is a very old company. This time company has reported a very good profit in the history. Good orders are expected in the next two years due to oil and gas capex and a pickup in smart buildings. Further, greater demand for small pumps in solar and agriculture activities should provide a push to order flow.
Quick Heal is next mid-cap stock recommended by Edelweiss. Quick Heal is antivirus company. The company is virtually debt free. The company’s financial result is improving. The company is maintaining healthy dividend pay-out YOY.
Best Mid Cap stocks by Karvy for 2018
Apar Industries Ltd
Apar Industries is electrical equipment Sector Company. India’s power sector is set for revival due to UDAY scheme. The energy demand is about to increase it will indirectly help Apar Industries. The company is on the growth trajectory. The company has reduced debt.
Greaves Cotton Ltd
Greaves Cotton Ltd is Indian Engineering Company that manufactures engines and heavy equipment. The company is future ready with the preparation of BS-VI next emission standard. The company is virtually debt free. Greaves Cotton Ltd has good upside potential.
Jain Irrigation Systems Ltd
Jain Irrigation System Ltd is engaged in the business of Hi-tech Agri Input Products (Drip & Sprinkler irrigation), Plastic Piping & Products. The food processing business has grown in terms of profitability. The company has sound domestic as well as exports order book which will ensure double-digit growth in forthcoming years.
K.P.R. Mill Ltd
KPR Mill Ltd. is an apparel manufacturing company engaged in the production of yarn, knitted fabric, and ready-made garments. The government is increasing focus on the textile business. 100% FDI to promote textile industry will be added advantage for K.P.R Mill Ltd.
KRBL is the world’s largest Basmati rice exporting company with domestic and export market. The company follows backward integration through a partnership with farmers which enable a company to have control on quality and quantity of produce. The company is enjoying very good client base outside India. The company has diversified source of earnings.
Mirza International Ltd
Mirza International is the leading Indian supplier of leather footwear. The latest merger of the company with Genesis Footwear will surely help Mirza International. PAT of Mirza International has grown by 18.3% in Q2FY12. The company is expected to perform better in the future.
MPS Ltd is engaged in the business of providing publishing solutions. The company has zero debt on its book and we expect the company to maintain the same during FY18E-19E. The strong balance sheet along with healthy free cash flow are additional advantages for MPS Ltd.
Natco Pharma Ltd
Natco is a specialty generic pharma manufacturer. It is a market leader in India. A strong R&D Capability and the debt-free balance sheet is plus point for this stock. The company has good consistent profit growth of 52.17% over 5 years. The company is expected to perform better in the future.
Tata Sponge Iron Ltd
Tata Sponge Iron deals in sponge iron. TSIL enjoys a leadership position in the industry with sound financial in terms of zero debt and high cash balance. Besides, company’s decision to bid for Iron Ore and Coal Mines and foray into steel making would provide good synergies to business in coming years.
Visaka Industries Ltd
Visaka Industries has two main business building products and synthetic yarn. Visaka enjoys a strong presence in building products and yarn business. It has been expanding its capacities to cater to emerging opportunities. Urbanisation, in particular, would lead to greater demand for housing-related products, while yarn business will receive great push as there is growing preference for the branded garment. The company will be the biggest beneficiary of the policy change by the government in the textile sector.
Best Mid Cap stocks by Nirmal Bang for 2018
S Chand and Company
S Chand and Company is largest publishing and education Services Company. The education industry is an evergreen industry. Presence in the growing industry will support the growth of the company. The company has posted highest growth in last 5 years. As per Nirmal Bang, the company is expected to give a better return in 2018.
Shemaroo Entertainment Ltd
Shemaroo Entertainment Ltd is media and Entertainment Company. The company has good consistent profit growth of 24.03% over 5 years. From past few years, the company is constantly incurring high capex in buying the titles of movies, however, management guided, FY18 closing inventory to be lower than FY17 inventory, which indicates investment phase is getting over. This is a positive sign for the company.
DCB Bank Ltd
DCB Bank Ltd is last mid-cap stock recommended by Nirmal Bang for 2018. Well capitalized and healthy Balance Sheet and stable asset quality are added advantage for DCB bank. PAT of the bank is growing. Healthy growth in Net Interest income will boost the revenue of the bank.
Over to you –
Do you think buying 18 best Mid-cap stocks suggested by stock market experts will likely to give good returns in future?
Top Stocks by Edelweiss
Best Mid Cap Stocks by Nirmal Bang
Top Mid Cap stocks 2018 by Karvy
(The views content and recommendations expressed in this post are of brokerage house own and do not represent those of Moneyexcel.com. Please consult your financial advisor before taking any position in the stocks mentioned)