The Indian stock market has been doing exceptionally well lately, particularly the BSE Midcap index, which saw a remarkable 40% surge in 2023. Factors like stable local numbers, easing inflation in the US, and increased foreign investment helped achieve this success.
As we move into 2024, several midcap companies have the potential to become large caps. These companies have solid fundamentals and healthy growth prospects and operate in attractive sectors.
Here are five midcap stocks that could become Large Caps:
IDFC First Bank:
IDFC First Bank, born out of the merger of IDFC Bank and Capital First Bank in 2018, is shifting its focus towards the high-margin retail sector. Registering a 29.6% income growth and expanding into digital, trade forex, wealth management, and credit cards, its stock soared 45% in just a year. The company is scaling up its business operations, and it could continue to do well in 2024 as it benefits from the growing retail banking market in India.
The second-largest Indian pharmaceutical company and a leading generic drug manufacturer. 9 advanced labs and 1,500 scientists consistently produce new drugs. In the last quarter alone, they submitted 10, received approval for 15, and introduced 19. It is well-positioned to benefit from the growing demand for generic drugs in the US and other developed markets. Aurobindo Pharma’s stock price has been volatile recently, but it could be due for a breakout in 2024.
A leading power plant equipment manufacturer in India. The company has a strong order book and is well-positioned to benefit from the government’s focus on renewable energy. With a global footprint in 88 countries across six continents, it reported a net profit of ₹470 crore in the financial year 2023, as against a net loss of ₹2,600 crore three years ago. BHEL’s stock price started to climb in 2023 and could continue to do well in 2024.
Max Healthcare Institute
One of India’s largest healthcare providers, with a strong presence in the Delhi and Mumbai regions, it is benefiting from the growing demand for healthcare services in India. A diversified approach to healthcare with specialties like cardiology, neurology, orthopedics, and oncology has driven this company’s revenue growth of 21.8% over the past five years. Max Healthcare’s stock price rose in 2023 and could continue outperforming in 2024.
A leading manufacturer of explosives and initiating systems. Solar Industries’ order book is overflowing, fueling a 22.9% revenue surge and a 24% net profit increase annually. With 40 global plants, including Nagpur’s largest explosives packaging facility, they’re blasting through the competition. The company’s aggressive expansion plans and impressive order book are well-positioned to fuel revenue growth in the medium term.
These are just a few midcap stocks that could become Large Caps in 2024. It is essential to do your own research before making any investment decisions.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.