Mid cap or medium sized companies are young companies and have significant growth potential. These companies generally outperform large caps when the markets are in bull run. However, they are riskier when the markets turn bearish. The intensity of fall of mid cap stocks during market corrections are higher than those of large caps and therefore, the risk of losing money is comparatively higher. Let us look at the top 5 best performing stocks of the BSE mid cap index that have given highest returns this year.
Vakranjee: A multi-purpose e-commerce company that provides real-time services across Banking & ATM, Insurance, E-Governance, E-Commerce and Logistics. It also engaged in Government-to-Citizen Services, Business-to-Consumer Services in the rural, semi-urban and urban markets. The company has an extensive delivery network and franchisee model of Vakrangee Kendras in more than 16 states in India and has a network of more than 35,000 Vakrangee Kendras. In FY17, on a consolidated basis, the company's revenue & operating profit increased by 25.3% and 15.1% respectively. Looking at the cost side, the operating expenses, employee cost and selling & marketing expenses jumped significantly by 136.2%, 73.7% and 88.3% respectively. Substantial reduction in depreciation costs by over -55.3% along with reduction in interest costs (-11.05%) helped company generate bottom line growth of 34.4%. Looking at the latest quarterly numbers for Sep 2017, Vakranjee's revenue jumped by 61.7% compared to Sep'16 quarter. Significant increase in other income by more than 200% and reduction in interest costs by nearly 80% helped EPS that grew by over 50% in Sep'17 quarter. In 2017, between 2 Jan 2017, the first trading day of the year & 11 Dec 2017, the stock delivered over 177% returns and outperformed BSE Midcap Index by over 4 times that delivered 41% returns.
Tata Global Beverages: A natural beverage company with presence in over 40 countries. It focuses on branded natural beverages- tea, coffee and water and has evolved from a predominantly domestic Indian tea farming entity to a marketing and brand-focussed global organisation. The brands include Tata Tea, Tetley, Jemca, Vitax, Eight O'Clock Coffee, Himalayan, Grand Coffee and Joekels. The company generates over 60% consolidated revenues from markets outside India. It has strategic alliances with Starbucks & PepsiCo in India, Green Mountain Coffee Roasters in US and Tassimo in Canada. In FY17, on a consolidated basis, the company's revenue & operating profit increased by 2.1% & 18.7% respectively. Helped by negligible increase in total expenditure (0.1%) and reduction in interest costs by over 21%, the company made profit of Rs 463.3 crores after suffering loss of Rs -30.25 crores in FY16. Looking at the latest quarterly numbers for Sep 2017, the revenue and operating profits grew by 4.3% & 12.1% respectively compared to Sep'16 quarter. Substantial reduction in interest costs by over 58% improved company's net profit margins that stood at 7.3% in Sep'17 quarter compared to 6.7% in Sep'16 quarter. In 2017, between 2 Jan 2017 & 11 Dec 2017, the stock delivered over 141% returns and outperformed BSE Midcap Index by over 3.4 times.
Jindal Steel & Power: A business conglomerate with significant presence in core infrastructure sectors including steel, power, mining and infrastructure. It operates across Chhattisgarh, Odisha and Jharkhand. Jindal Steel is a part of the diversified O. P. Jindal Group, and its presence spans across Asia, Africa and Australia. The company's product portfolio caters to the markets across the steel value chain. As part of the community services, Jindal Steel focuses on women empowerment, skill development, health and nutrition, sanitation, education and social infrastructure creation. In FY17, on a consolidated basis, the company registered revenue growth of 14.6% and expenditure growth of 9.8%. It suffered a net loss of Rs -2670.6 crores in FY17 compared to the net loss of Rs -3086.25 crores in FY16. In Sep'17 quarter, the company registered revenue growth of 21.97% compared to Sep'16 quarter. Operating profit grew by 61.9% helped by over 102% growth in other income. The company narrowed down its loss in Sep'17 quarter. It suffered a net loss of Rs -499.8 crores in Sep'17 compared to net loss of Rs -747.3 crores in Sep'16 quarter. In 2017, the stock delivered over 134% returns and outperformed BSE Midcap Index by over 3 times.
Dalmia Bharat: The Company operates as a cement manufacturing company and its segments include own manufactured cement, refractory and management services. It manufactures cement for use in lining of oil wells, airport strips and railway sleepers. The Company owns a 5.5-megawatt capacity solar power plant at Medinipur, West Bengal. It also owns thermal power plants, co-generation plants and wind farms. Dalmia Bharat has manufacturing facilities in 11 locations with an installed capacity of 25 million tons per annum. In FY17, on a consolidated basis the revenue & operating profit grew by 15.5% and 20.8% respectively. The employee cost and selling expenses grew by 20.5% and 18.2% respectively. The bottom line registered a growth rate of 63.2%. In the Sep'17 quarter, the consolidated sales revenue declined by 5.4% compared to Sep'16 quarter. Helped by increase in other income, falling depreciation & interest costs and decrease in tax outgo, the company registered a healthy bottom line growth of 165.9%. This year, the company delivered 120.2% returns and outperformed BSE Midcap index by nearly 3 times.
Endurance Technologies: The company is an automotive component manufacturer and has 18 plants in India and 8 plants in Europe. The product portfolio comprises of raw and machined aluminium castings, suspension products, transmission products, braking systems and after market services. In Europe, Endurance predominantly caters to four-wheeler OEMs, focusing on engine, transmission and suspension/ body components. The company has registered a 5 year CAGR of 9.9% and 17.9% in income and net profits respectively at the end of FY17. The total assets grew by 7% whereas the total debt fell by 16.5% between FY16 and FY17. Its cash reserves witnessed a health growth of 31.4%. Looking at the consolidated Sep'17 quarterly numbers, the revenue grew by 3.75%. Helped by other income, the operating profit margins improved from 13.2% in Sep'16 quarter to 14.53% in Sep'17 quarter. It registered a bottom line growth of 11.6%. This year, the stock delivered 111% returns and outperformed BSE Midcap index by 2.7 times.