Shares of mid-sized companies continued their upward march with the Bombay Stock Exchange’s S&P BSE Midcap index crossing the 10,000 mark after a gap of more than six years. The S&P BSE Midcap index hit a high 10,019 during intra-day trade today.
The index had breached this mark for the first time ever on January 2, 2008 and is just 227 points shy of its record high of 10,246 touched in intra–day trade on January 8, 2008.
Out of 193 actively traded stocks from the midcap index, 80 stocks have more than doubled. However, 73 stocks are still trading below their 2008 level. There are total 238 companies in the mid-cap index, of which 45 got listed after January 2008.
“Though we cannot generalise this for the entire lot, but a lot of the mid – cap companies do have good prospects. Also consider the fact that mid – cap companies are still quoting at an attractive valuation as compared to some of the companies among the large-caps. So certainly there is headroom available,” said Deven Choksey, managing director and chief executive officer, K R Choksey Shares and Securities.
Among individual stocks, Symphony, PI Industries, Ajanta Pharma, TTK Presitage, Kajaria Ceramics, Astral Poly Technik, Page Industries, Kaveri Seed Company, Hatsun Agro Products, Vakrangee, Responsive Industries and Gruh Finance have seen over ten–fold rise in their market value from January 2008 levels.
Stock strategy
The index had breached this mark for the first time ever on January 2, 2008 and is just 227 points shy of its record high of 10,246 touched in intra–day trade on January 8, 2008.
Out of 193 actively traded stocks from the midcap index, 80 stocks have more than doubled. However, 73 stocks are still trading below their 2008 level. There are total 238 companies in the mid-cap index, of which 45 got listed after January 2008.
“Though we cannot generalise this for the entire lot, but a lot of the mid – cap companies do have good prospects. Also consider the fact that mid – cap companies are still quoting at an attractive valuation as compared to some of the companies among the large-caps. So certainly there is headroom available,” said Deven Choksey, managing director and chief executive officer, K R Choksey Shares and Securities.
Among individual stocks, Symphony, PI Industries, Ajanta Pharma, TTK Presitage, Kajaria Ceramics, Astral Poly Technik, Page Industries, Kaveri Seed Company, Hatsun Agro Products, Vakrangee, Responsive Industries and Gruh Finance have seen over ten–fold rise in their market value from January 2008 levels.
Stock strategy
Despite the run up, analysts recommend that investors should stay invested in this segment and there is more steam left in this rally. However, one needs to be selective, they suggest.
“Alembic Pharma, Bharat Forge, Dhanuka Agritech, Finolex Cables, Greaves Cotton, Indiabulls Housing Finance, JK Lakshmi Cement, Jyoti Structures, Kirloskar Oil Engines, LG Balakrishnan, Magma Fincorp, PTC India Financial Services and SREI Infrastructure Finance are some mid–cap stocks that have potential to double in two years,” points out Amar Ambani, head of research of India Infoline Group in a recent report.
Meanwhile, MMTC, Unitech, Suzlon Energy, Indiabulls Real Estate, Jaiprakash Power Ventures, Network18 Media and Investment, HDIL, TV18 Broadcast, Aban Offshore, Hindustan Copper, Jet Airways, Reliance Capital, Videocon Industries and GMR Infrastructure are among the notable stocks that are still available 75 – 96% below their 2008 price.
“Alembic Pharma, Bharat Forge, Dhanuka Agritech, Finolex Cables, Greaves Cotton, Indiabulls Housing Finance, JK Lakshmi Cement, Jyoti Structures, Kirloskar Oil Engines, LG Balakrishnan, Magma Fincorp, PTC India Financial Services and SREI Infrastructure Finance are some mid–cap stocks that have potential to double in two years,” points out Amar Ambani, head of research of India Infoline Group in a recent report.
Meanwhile, MMTC, Unitech, Suzlon Energy, Indiabulls Real Estate, Jaiprakash Power Ventures, Network18 Media and Investment, HDIL, TV18 Broadcast, Aban Offshore, Hindustan Copper, Jet Airways, Reliance Capital, Videocon Industries and GMR Infrastructure are among the notable stocks that are still available 75 – 96% below their 2008 price.
| Stock | Jan 2, 2008 | Sep 12, 2014 | % chg |
| GAINERS | |||
| Westlife Development | 0.05 | 345.00 | 689900.00 |
| Sulabh Engineers | 1.00 | 240.60 | 23960.00 |
| Symphony | 7.78 | 1475.00 | 18858.87 |
| PI Industries | 6.12 | 483.35 | 7797.88 |
| Ajanta Pharma | 39.53 | 1737.00 | 4294.13 |
| TTK Prestige | 200.40 | 4469.10 | 2130.09 |
| Kajaria Ceramics | 36.20 | 654.00 | 1706.63 |
| Astral Poly Technik | 46.12 | 823.00 | 1684.48 |
| Page Industries | 480.10 | 7842.45 | 1533.50 |
| Kaveri Seed Co | 64.42 | 1012.35 | 1471.48 |
| LOSERS | |||
| MMTC | 1784.13 | 75.50 | -95.77 |
| Unitech | 538.20 | 22.90 | -95.75 |
| Suzlon Energy | 391.33 | 23.35 | -94.03 |
| Indiabulls Real Estate | 661.05 | 66.80 | -89.89 |
| JP Power Ventures | 136.10 | 13.95 | -89.75 |
| Network 18 Media | 503.04 | 50.95 | -89.87 |
| HDIL | 901.41 | 94.90 | -89.47 |
| TV18 Broadcast | 201.98 | 29.40 | -85.44 |
| Aban Offshore | 5073.80 | 751.50 | -85.19 |
| Hindustan Copper | 569.30 | 91.45 | -83.94 |
| Adjusted price on BSE | |||
| At 1435 hours | |||
