High CAGR Mid Cap Stocks

Best mid-cap stocks with high growth potential include PG Electroplast with an impressive 229.42% 1Y return and 191.26% 5Y CAGR, followed by Transformers and Rectifiers India, which boasts a 423.33% 1Y return and 171.21% 5Y CAGR. Other strong performers include Refex Industries with 421.66% 1Y return and 117.52% 5Y CAGR, and Shilchar Technologies with 227.86% 1Y return and 159.28% 5Y CAGR.

The table below shows the high CAGR mid-cap stocks based on their highest market capitalisation and 1-year return.

Introduction To List of High CAGR Mid Cap Stocks

PG Electroplast Ltd

PG Electroplast Limited is a provider of electronic manufacturing services (EMS) in India for original equipment manufacturers (OEMs) of consumer electronic products. The company is involved in manufacturing consumer durables, which encompass various divisions such as molding, electronics, complete products, paint shop, thermoset, and tooling. 

Within the molding division, the company produces parts for air-conditioners, air coolers, washing machines, refrigerators, ceiling fan parts, automobile components, and sanitary ware products. The electronics division focuses on Printed circuit board assemblies for LED lights, televisions, and set-top boxes. 

• Close Price ( ₹ ): 759.85
• Market Cap ( Cr ): 19842.54
• 1Y Return %: 229.42
• 6M Return %: 177.91
• 1M Return %: 16.72
• 5Y CAGR %: 191.26
• % Away From 52W High: 0.35 

HBL Engineering Ltd

HBL Power Systems Limited is an India-based company involved in the design, development, and production of specialized batteries and electronic solutions. The company also provides services related to its products. Its business segments include Industrial batteries, Defence and Aviation batteries, and Electronics. 

The company operates across three primary verticals: battery, electronics, and defence, with the electronics vertical further divided into railway electronics and electric mobility. Notable products in this vertical include the train collision avoidance system (TCAS) and the train management system (TMS), which focus on safety and efficient track utilization.  

• Close Price ( ₹ ): 626.35
• Market Cap ( Cr ): 17362.11
• 1Y Return %: 55.69
• 6M Return %: 24.35
• 1M Return %: 9.40
• 5Y CAGR %: 109.55
• % Away From 52W High: 15.59
• 5Y Avg Net Profit Margin %: 6.14 

Tata Teleservices (Maharashtra) Ltd

Tata Teleservices (Maharashtra) Limited specializes in delivering connectivity and communication solutions tailored for businesses. Operating under the Tata Tele Business Services (TTBS) brand, the company provides information and communication technologies (ICT) services across India. 

Their offerings include cloud and SaaS solutions such as Microsoft Azure, smart cloud services, Microsoft 365, Google Workspace, Zoom Communications, and the WhatsApp Business Platform; cybersecurity services including email protection and Seqrite endpoint security; marketing solutions like toll-free services, call register services, hosted IVR and OBD, and SMS solutions; and enterprise voice services that feature SIP trunking, international bridging, and Centrex solutions.

• Close Price ( ₹ ): 79.94
• Market Cap ( Cr ): 15727.39
• 1Y Return %: -14.73
• 6M Return %: 6.23
• 1M Return %: 4.91
• 5Y CAGR %: 97.65
• % Away From 52W High: 39.35
• 5Y Avg Net Profit Margin %: -157.29 

Transformers and Rectifiers (India) Ltd

Transformers and Rectifiers (India) Ltd (TRIL) is a leading manufacturer of electrical equipment, specializing in transformers, reactors, and rectifiers. Founded in 1992, the company serves various industries, including power generation, transmission, and distribution, with a strong presence in both domestic and international markets. TRIL is known for its advanced technology and high-quality products, offering customized solutions for utility, industrial, and infrastructure projects. 

• Close Price ( ₹ ): 990.40
• Market Cap ( Cr ): 14707.38
• 1Y Return %: 423.33
• 6M Return %: 34.75
• 1M Return %: 7.95
• 5Y CAGR %: 171.21
• % Away From 52W High: 5.51
• 5Y Avg Net Profit Margin %: 1.70 

Ganesh Housing Corp Ltd

Ganesh Housing Corporation Limited, an India-based real estate development company, specializes in constructing residential, commercial, and infrastructure projects. The company has successfully developed approximately 22 million square feet of land in the city, with a further 35 million square feet under development.

In terms of commercial endeavors, Maple Trade Centre is an ongoing project, whereas Magnet Corporate Park and GCP Business Center are completed projects. The company’s subsidiaries include Madhukamal Infrastructure Private Limited and Gatil Properties Private Limited.

• Close Price ( ₹ ): 1284.80
• Market Cap ( Cr ): 10713.57
• 1Y Return %: 228.30
• 6M Return %: 57.78
• 1M Return %: 18.77
• 5Y CAGR %: 113.37
• % Away From 52W High: 3.28
• 5Y Avg Net Profit Margin %: -3.45 

Lloyds Engineering Works Ltd

Lloyds Engineering Works Ltd, formerly known as Lloyds Steels Industries Limited, is an Indian company that designs and manufactures heavy equipment, machinery, and systems for various sectors, including hydrocarbons, oil and gas, steel plants, power plants, and nuclear plant boilers. 

The company operates within the Engineering Products and Services segment. Its activities encompass the design, engineering, manufacturing, fabrication, supply, erection, and commissioning of a wide range of equipment for mechanical, hydraulic, structural, process, metallurgical, and chemical plants.  

• Close Price ( ₹ ): 78.68
• Market Cap ( Cr ): 9143.06
• 1Y Return %: 71.48
• 6M Return %: 21.05
• 1M Return %: 5.76
• 5Y CAGR %: 177.17
• % Away From 52W High: 18.71
• 5Y Avg Net Profit Margin %: 7.36 

Refex Industries Ltd

Refex Industries Limited is an Indian company specializing in the manufacturing and refilling of refrigerant gases. The company produces a variety of non-ozone-depleting refrigerant gases known as Hydrofluorocarbons (HFC), which are utilized in air conditioning systems, refrigerators, and other refrigerating equipment. 

Refex Industries Limited also supplies automotive air conditioning gases in disposable cans. The company’s operations encompass various segments including coal trading and ash handling, solar power generation, refrigerant gas manufacturing and refilling, service sales, power trading, and other related areas. The refrigerant gases offered by the company find applications as refrigerants, blowing agents, and aerosol propellants.  

• Close Price ( ₹ ): 563.45
• Market Cap ( Cr ): 7262.18
• 1Y Return %: 421.66
• 6M Return %: 310.23
• 1M Return %: 9.18
• 5Y CAGR %: 117.52
• % Away From 52W High: 6.49 

Piccadily Agro Industries Ltd

Piccadily Agro Industries Limited, headquartered in India, specializes in the manufacturing of sugar and distillery products. The company has two main divisions: Sugar and Distillery. The Sugar segment includes sugar, molasses, power, and bagasse among its products. 

The Distillery segment offers liquor, malt, carbon dioxide gas, and ethanol. In terms of production, the Sugar Mill has generated about 667,800 quintals of sugar and approximately 318,982 quintals of molasses. 

• Close Price ( ₹ ): 761.55
• Market Cap ( Cr ): 7184.41
• 1Y Return %: 234.23
• 6M Return %: 1.02
• 1M Return %: 3.20
• 5Y CAGR %: 155.46
• % Away From 52W High: 19.59
• 5Y Avg Net Profit Margin %: 6.15 

Shilchar Technologies Ltd

Shilchar Technologies Limited, based in India, manufactures and distributes power transformers as well as electronics and telecommunication transformers. The company solely operates in the Transformers & Parts segment. 

Additionally, the company also produces transformers for solar and windmill applications in the renewable energy sector. Shilchar Technologies Limited serves various industries such as private utility companies, renewable energy, cement, sugar, steel, and hydrocarbon, as well as large-scale engineering, procurement, and construction (EPC) contractors, corporate clients, and power plant developers.

• Close Price ( ₹ ): 8289.75
• Market Cap ( Cr ): 6322.43
• 1Y Return %: 227.86
• 6M Return %: 56.59
• 1M Return %: 14.91
• 5Y CAGR %: 159.28
• % Away From 52W High: 5.71
• 5Y Avg Net Profit Margin %: 10.33 

Aditya Vision Ltd

Aditya Vision Limited is an Indian company that operates a chain of retail stores specializing in various consumer electronics. The company’s main focus is on selling a wide range of electronic products such as consumer electronics, home appliances, mobility devices, and IT products. 

With a product catalog of over 10,000 items, including digital gadgets like mobile phones, laptops, and tablets, as well as entertainment solutions like televisions, soundbars, and cameras, Aditya Vision Limited offers a diverse selection from both national and international brands. They also provide home appliances such as air conditioners, refrigerators, and washing machines, as well as small kitchen appliances like chimneys, air fryers, and dishwashers.   

• Close Price ( ₹ ): 475.55
• Market Cap ( Cr ): 6117.28
• 1Y Return %: 41.45
• 6M Return %: 51.58
• 1M Return %: 2.03
• 5Y CAGR %: 184.09
• % Away From 52W High: 20.90
• 5Y Avg Net Profit Margin %: 3.52 

What Are Mid Cap Stocks?

Mid-cap stocks refer to companies with a market capitalization between ₹5,000 crore and ₹20,000 crore. These stocks typically offer a balance of growth potential and stability, making them attractive to investors seeking moderate risk and returns. Mid-cap companies often experience faster growth than large-cap companies but with relatively higher volatility compared to small-cap stocks.

Features Of Best High CAGR Mid Cap Stocks

The key features of the best high CAGR mid-cap stocks are the characteristics that indicate strong growth potential, stability, and a good market position. High Compound Annual Growth Rate (CAGR) is one of the most significant metrics for identifying top-performing mid-cap stocks.

1. Strong Revenue Growth
   High CAGR mid-cap stocks generally show impressive revenue growth, indicating a solid business model and strong customer demand. This growth is often fueled by expanding market reach or increasing product offerings, contributing to their sustained upward trajectory.
2. Profitability Improvement
   A consistent improvement in profitability is a key sign of a healthy mid-cap company. These stocks usually demonstrate high net profit margins, with management effectively controlling costs while scaling operations, ensuring increasing earnings over time.
3. Market Leadership
   Successful high CAGR mid-cap stocks often emerge as leaders in their respective sectors. Their competitive edge, through unique offerings or strategic positioning, allows them to outperform competitors, making them attractive to long-term investors.
4. Strong Management Team
   A capable and experienced management team is vital for driving growth. These leaders understand market dynamics and are focused on long-term profitability. A strong leadership team enables the company to navigate challenges effectively and seize opportunities.
5. Expansion Plans
   Best high CAGR mid-cap stocks are typically in a phase of rapid expansion, whether through geographic diversification, new product lines, or strategic acquisitions. This positions them for future growth and supports long-term value creation, benefiting investors.

List of High CAGR Mid Cap Stocks Based on 6 Month Return

The table below shows the list of high cagr mid-cap stocks based on a 6-month return.

Top High CAGR Mid Cap Stocks India Based on 5 Year Net Profit Margin

The table below shows the top high cagr mid-cap stocks in India based on 5-year net profit margin.

Best High CAGR Mid Cap Stocks Based on 1M Return

The table below shows the best high cagr mid-cap stocks based on a 1-month return.

Historical Performance of High CAGR Mid Cap Stocks

The table below shows the historical performance of high cagr mid-cap stocks.

Factors To Consider When Investing In High CAGR Mid Cap Stocks

The factors to consider when investing in high CAGR mid-cap stocks are crucial for assessing the potential returns and risks involved. A high CAGR indicates strong growth, but it also requires a deeper analysis of underlying market conditions, company performance, and broader economic trends.

1. Company Fundamentals
   Before investing, thoroughly analyze the company’s financial health, revenue growth, profitability, and debt levels. Strong fundamentals suggest the business is well-positioned to continue growing and generating value for shareholders in the long term.
2. Industry and Sector Growth
   The growth potential of the industry or sector in which the company operates can significantly impact its future performance. Invest in sectors that are expected to grow rapidly or exhibit strong demand, driving profitability and stock performance.
3. Management Quality
   A capable and experienced management team is essential for navigating challenges and capitalizing on opportunities. Evaluate leadership decisions, strategy execution, and their track record in driving the company’s growth trajectory.
4. Market Volatility
   Mid-cap stocks can be more volatile than large-cap stocks, especially in uncertain market conditions. Assess the stock’s price fluctuations and understand the risks involved, including economic downturns or industry-specific disruptions that could negatively impact performance.
5. Valuation
   Ensure the stock is fairly valued relative to its growth potential. An overvalued stock, despite strong historical growth, may have limited upside. Compare key valuation metrics like the price-to-earnings (P/E) ratio against industry peers to determine attractiveness.

How To Invest In High CAGR Mid Cap Stocks?

Investing in high CAGR mid-cap stocks involves a systematic approach that includes thorough research, identifying the right stocks, and selecting a reliable brokerage platform. Start by evaluating the company’s potential for sustained growth, then proceed with careful planning for portfolio diversification.

1. Research and Analyze Stock Potential
   Begin by identifying companies with a strong historical growth rate and solid future prospects. Assess their financial health, market position, and industry outlook to gauge if they can maintain or surpass their high CAGR.
2. Use Technical and Fundamental Analysis
   Use both technical analysis to understand stock price trends and fundamental analysis to evaluate the company’s performance metrics. This combined approach helps identify undervalued stocks with strong growth prospects and supports well-informed investment decisions.
3. Select a Reliable Stock Broker
   Choose a trustworthy and user-friendly brokerage platform, like Alice Blue, that offers tools for research, trading, and portfolio management. Alice Blue provides competitive fees, real-time data, and a range of investment options suitable for both beginners and experienced traders.
4. Diversify Your Portfolio
   While mid-cap stocks offer high growth potential, they can also be volatile. Diversifying your investments across various sectors and asset classes helps balance risk and ensures more stable long-term returns.
5. Monitor and Adjust Investments Regularly
   After making the initial investment, keep track of stock performance and market trends. Regular monitoring allows you to adjust your holdings based on company growth, market changes, or any emerging risks, helping protect your investments.

Impact of Government Policies on Mid Cap Stocks

Government policies play a significant role in shaping the landscape of mid-cap stocks. These policies can influence market dynamics by impacting taxation, regulation, and government spending. For instance, favorable tax incentives or increased infrastructure spending can boost investor confidence and lead to growth in mid-cap companies. Conversely, restrictive regulations can hinder their expansion prospects.  

Additionally, political stability and government initiatives aimed at supporting small and medium enterprises can create a conducive environment for mid-cap stocks. Investors closely monitor policy changes, as they can directly affect profitability and investment strategies in this segment of the market.

How High CAGR Mid Cap Stocks Perform in Economic Downturns?

These stocks typically exhibit significant growth potential, attracting investors seeking substantial returns. However, in challenging economic environments, they can be vulnerable to volatility, leading to fluctuations in their value.  During recessions, mid-cap stocks may face pressures such as reduced consumer spending and tighter credit conditions. 

While some companies may struggle, those with strong fundamentals and adaptability can manage to maintain their growth trajectory. Investors should carefully analyze individual stocks to identify resilient performers during turbulent times.

Advantages Of High CAGR Mid Cap Stocks?

The primary advantage of high CAGR mid-cap stocks is their potential for significant growth, which often exceeds that of larger, more established companies. These stocks typically offer higher returns due to their rapid expansion in emerging markets and industries.

1. Higher Growth Potential
   Mid-cap stocks tend to offer higher growth rates compared to large-cap stocks because they are in a stage of expansion. As these companies scale, their earnings and stock prices can grow significantly, providing higher long-term returns.
2. Attractive Investment Opportunities
   These stocks often operate in emerging sectors with untapped potential, presenting investors with unique opportunities. By entering at an early stage, investors can benefit from the future growth of industries like technology, renewable energy, and healthcare.
3. Market Inefficiencies
   Mid-cap stocks may not yet be fully covered by analysts, leading to inefficiencies in their valuation. Savvy investors can take advantage of these gaps in research, finding undervalued stocks with strong growth potential that the market has yet to recognize.
4. Diversification for Risk Reduction
   Adding high CAGR mid-cap stocks to a portfolio offers diversification. These stocks generally have different risk factors compared to large-cap stocks, and their growth dynamics can help balance and reduce overall portfolio risk, especially in market downturns.
5. Potential for Acquisition or Expansion
   Mid-cap companies are more likely to be acquired or to enter new markets, providing a catalyst for growth. These acquisitions can lead to higher revenues, improved market position, and stock price appreciation, benefiting investors significantly.

Risks Of High CAGR Mid Cap Stocks?

The main risk of high CAGR mid-cap stocks lies in their volatility and susceptibility to market fluctuations. While these stocks have high growth potential, they can also experience sharp declines, making them riskier investments than large-cap stocks.

1. Higher Volatility
   Mid-cap stocks can be more volatile compared to large-cap stocks due to their smaller size and limited market presence. This volatility can lead to significant price swings, especially during economic downturns or market corrections, exposing investors to heightened risk.
2. Liquidity Concerns
   Mid-cap stocks often have lower trading volumes compared to larger stocks, making them less liquid. This can make it difficult to enter or exit positions quickly without affecting the stock price, especially during periods of market stress.
3. Economic Sensitivity
   High CAGR mid-cap stocks are often more sensitive to changes in the economic environment. Economic slowdowns, rising interest rates, or political instability can disproportionately affect smaller companies, leading to sharp declines in their stock value.
4. Limited Financial Resources
   Unlike larger companies, mid-cap stocks may have fewer financial resources to weather market challenges. These companies might struggle to secure funding during tough economic periods, which can limit their ability to continue growing or innovate.
5. Execution Risks
   As mid-cap companies are in growth phases, their business strategies may not always be executed effectively. Management challenges, misaligned strategies, or operational difficulties can derail their growth trajectory, leading to financial underperformance and stock price declines.

Mid Cap Stocks GDP Contribution

Mid-cap stocks play a vital role in a country’s GDP contribution, often driving economic growth through innovation, job creation, and regional development. These companies are typically in a phase of rapid expansion, operating in emerging industries that contribute to GDP growth, such as technology, healthcare, and infrastructure. While not as large as blue-chip firms, mid-cap stocks help diversify the economy by fostering competition and innovation. 

Their growth potential can lead to increased productivity, exports, and market competitiveness, thus indirectly bolstering national economic performance and contributing to the overall economic development and GDP growth.

Who Should Invest in the High CAGR Mid Cap Stocks?

High CAGR mid-cap stocks are suited for investors with a higher risk tolerance and a long-term investment horizon. These stocks can provide substantial returns, but they come with volatility and uncertainty, making them ideal for those looking to capitalize on growth while managing risk.

1. Risk-Tolerant Investors
   Investors who are comfortable with market fluctuations and are willing to accept short-term volatility for long-term gains should consider high CAGR mid-cap stocks. These stocks have the potential for strong returns but require patience and resilience to market swings.
2. Long-Term Investors
   High CAGR mid-cap stocks are best suited for long-term investors who can hold through periods of volatility. The growth potential of these stocks often becomes more apparent over time, making them a good fit for a multi-year investment strategy.
3. Growth-Oriented Investors
   Investors seeking capital appreciation rather than dividend income will benefit from investing in high CAGR mid-cap stocks. These companies typically reinvest profits into growth initiatives, offering substantial long-term returns but with limited immediate income.
4. Diversified Portfolio Seekers
   Investors looking to diversify their portfolios with a mix of risk and growth potential can include high CAGR mid-cap stocks. By adding these stocks to a broader portfolio of low-risk investments, they can enhance overall returns while managing exposure to risk. 

List of High CAGR Mid Cap Stocks – FAQs

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.