Best Mid Cap Stocks Under Rs 500 with RoE of 20%: Investors are constantly on the lookout for highly profitable companies that can continue to grow in the coming years. Thus, mid cap stocks with high return ratios are a good proposition as you can expect ample headroom for growth. In this article, we’ll present […]
The post Best Mid Cap Stocks Under Rs 500 – Top Stocks & Complete List appeared first on Trade Brains.
Best Mid Cap Stocks Under Rs 500 with RoE of 20%: Investors are constantly on the lookout for highly profitable companies that can continue to grow in the coming years. Thus, mid cap stocks with high return ratios are a good proposition as you can expect ample headroom for growth. In this article, we’ll present you a list of such top mid cap stocks under Rs 500 with RoE of 20%.
Best Mid Cap Stocks Under Rs 500
For our study, we’ll look at businesses from various industries: city gas distribution, chemicals, and quick-service restaurants. We’ll learn about their businesses and any recent developments. Later, a table lists more best mid cap stocks under Rs 500 with RoE of 20%.
Best Mid Cap Stocks Under Rs 500 #1 – Indraprastha Gas Ltd.
|CMP||₹494||Market Cap (Cr.)||₹34,600|
|Promoter Holding||45.0%||Book Value||₹116|
|Debt to Equity||0.01||Price to Book Value||4.2|
|Net Profit Margin||18.9%||Operating Profit Margin||24.6%|
Indraprastha Gas Ltd. (IGL) was incorporated in 1998 as a joint venture of GAIL and BPCL. Presently, both the PSUs hold a 22.5% stake each totaling the promoter holding 45%. In addition to this, a 5% stake lies with the Delhi Government.
IGL is engaged in the business of distribution of compressed natural gas (CNG) and piped natural gas (PNG) for automotive, domestic, and commercial uses. Its area of operation includes Delhi NCT and nearby towns as well such as Ajmer, Meerut, etc.
It owns more than 725 CNG gas stations in and around Delhi. The company sells over 43.86 lakh kgs of natural gas every day.
Recently, the gas distributor acquired stakes in Central UP Gas Limited (CUGL) and Maharashtra Natural Gas Limited (MNGL) to diversify its presence and enter CGD markets of Pune, Kanpur, and more.
The management of IGL announced last year that it has earmarked a large investment of Rs 8,000 crore towards the expansion of CNG stations and pipelines.
IGL is a debt-free mid cap stock with a high RoE of 20.9%. The trailing twelve months (TTM) profit after tax of IGL after the December 2022 quarter results stood at Rs 1,673 crore on sales of Rs 12,865 crore.
Best Mid Cap Stocks Under Rs 500 #2 – Gujarat Gas Ltd.
|CMP||₹460||Market Cap (Cr.)||₹31,600|
|Promoter Holding||60.9%||Book Value||₹91|
|Debt to Equity||0.05||Price to Book Value||5.0|
|Net Profit Margin||7.9%||Operating Profit Margin||12.9%|
Owned by Gujarat State Petronet, Gujarat Gas Ltd (GGL). is a city gas distribution company with a prominent presence in the state of Gujarat and neighboring states. It owns more than 27 CGD licenses and has operations in 44+ cities in six states and one Union Territory giving it a diversified footprint.
The Ahmedabad-headquartered company was established in 1980. It saw a change of ownership when British Gas acquired a majority stake in 1997. Later, Gujarat State Petroleum Corporation bought BG Group’s stake marking a reverse privatization.
The Gujarat government company is one of the largest CGD players in the country with a licensed area of 1,75,700 sq. km., 17 lakh residential customers, 13,400 commercial customers, 711 CNG stations, and 4,300 industrial units.
GGL has plans to increase its capital expenditure every year from now. Previously, it used to spend Rs 500 crore every year on average. Going forward, the management is targeting a CAPEX of Rs 1,000 crore.
Despite being in the same industry, GGL boasts off higher RoE of 25.7% than Indraprastha Gas. The company reported a TTM net profit of Rs 1,602 crore on an income of Rs 17,500 crore after the December 2022 results. Its earnings have continuously increased over the last several years.
It is also a debt-free stock with a high promoter holding of 60.9%.
Best Mid Cap Stocks Under Rs 500 #3- Jubilant FoodWorks Ltd.
|CMP||₹448||Market Cap (Cr.)||₹29,500|
|Promoter Holding||41.9%||Book Value||₹31|
|Debt to Equity||1.12||Price to Book Value||14.3|
|Net Profit Margin||9.8%||Operating Profit Margin||25.2%|
Jubilant Foodworks Ltd. (JFL) is the renowned master franchiser of Domino’s Pizza outlets in India, Sri Lanka, Bangladesh, and Nepal. It has exclusive rights to develop and operate pizza stores in the country and is the largest franchise of Domino’s outside the US.
The company was founded close to three decades ago in 1995 by Shyam Sunder Bhartia and Hari Bhartia. Since then, it has grown to become the largest quick-service restaurant chain in India.
It operates over 1,900 outlets across different brands. It has a presence in more than 387 cities in the country. Along with Domino’s Pizza, Jubilant also has exclusive rights to own and operate Dunkin and Popeyes stores in India. Furthermore, in recent years, JFL has also launched two in-house brands: Ekdum and Hong’s Kitchen.
The net profit and sales of Jubilant Foodworks have consistently grown since FY17 because of volume growth and margin expansion both. The trailing twelve months (TTM) profit after tax was recorded at Rs 420 crore on an income of Rs 5,064 crore. It is a profitable business with a high RoE of 25.5%.
Furthermore, the management notified in January this year that it has planned a CAPEX of Rs 900 crore over the next 12 to 18 months. It will be deployed towards upgrading the digital infrastructure, Domino’s and Popeyes outlets, and developing back-end units that service outlets.
Best Mid Cap Stocks Under Rs 500 #4 – Sona BLW Precision Forgings Ltd.
|CMP||₹459||Market Cap (Cr.)||₹26,900|
|Promoter Holding||33.0%||Book Value||₹35|
|Debt to Equity||0.12||Price to Book Value||13.0|
|Net Profit Margin||17.7%||Operating Profit Margin||25.8%|
Sona BLW Precision Forgings was started almost three decades ago in 1995. Fast forward to the present date, it is a leading auto ancillary company in India with an international presence. Over the years, it has grown organically and inorganically to become of the most preferred automotive components supplier.
Sona BLW had a brand revamp in 2019 when it acquired Comstar Automotive Technologies. Thereafter, a new image ‘Sona Comstar’ was crafted to leverage the brand synergies.
Talking about the business of the company, it is engaged in the design, production, and sale of critical automotive components including differential gears, differential assemblies, BSG systems, EV traction motors, conventional & micro-hybrid starter motors, and motor control units.
In FY22, overseas sales accounted for a majority of 78% of the total income of Sona Comstar making it a well-diversified company. What’s more? EV components sales made up 25% of the revenue positioning Sona Comstar well to ride the EV boom.
The automotive components manufacturer employs over 3,500 individuals across its nine production and assembly sites located in India, the USA, Mexico, and China. It has three R&D centers and eight warehouses.
Sona BLW is a high RoE stock supported by its strong profit margins. Promoters hold a 33% stake in the business that has reported consistent growth (barring FY20) in profits and sales both since FY277. Its TTM net profit stood at Rs 447 crore on sales of Rs 2,264 crore after the December 2023 quarter results.
Best Mid Cap Stocks Under Rs 500 #5- Sumitomo Chemical India Ltd.
|CMP||₹412||Market Cap (Cr.)||₹20,600|
|Promoter Holding||75.0%||Book Value||₹44|
|Debt to Equity||0.01||Price to Book Value||9.3|
|Net Profit Margin||14.2%||Operating Profit Margin||19.7%|
Sumitomo Chemical India Ltd. (SCIL) is a subsidiary of Sumitomo Chemical Company, a Japanese global leader in the chemicals industry. The parent holds the maximum allowed 75% shareholding in the company.
SCIL is engaged in the manufacturing, import, and marketing of a wide variety of products: crop protection, rodent control, pesticides, grain fumigation, environmental health, and more.
The company is run by a strong workforce of over 1,750 employees. It has 5 manufacturing facilities and a large network of 16,000 direct distributors handling 700+ SKUs across 200+ brands.
The management of the chemical stock has put an additional CAPEX of Rs 120 crore on the top of usual CAPEX of Rs 70-75 crore. It plans to monetize 5 more products and has a few more in the pipeline.
The stock of SCIL currently trades at a price-to-earnings ratio of 41 and a price-to-book value ratio of 9.3. It is a debt-free stock with a high RoE of 25.1%
List of All Mid Cap Stocks Under Rs 500
The table below presents the names of all mid cap stocks under Rs 500
|Sl No||Company||Industry||MCap(Cr)||Current Price (Rs)||PE Ratio TTM|
|1||Indian Overseas Bank||Bank – Public||₹47,293.84||₹25.08||27.74|
|2||Max Healthcare Institute Ltd.||Hospital & Healthcare Services||₹47,010.52||₹484.10||48.15|
|3||CG Power and Industrial Solutions Ltd.||Electric Equipment||₹46,630.96||₹305.10||71.86|
|4||Yes Bank Ltd.||Bank – Private||₹45,835.54||₹15.94||62.29|
|5||NHPC Ltd.||Power Generation, Distribution||₹45,805.36||₹45.60||11.92|
|6||Indian Railway Finance Corporation Ltd.||Finance Term Lending||₹45,530.67||₹34.84||7.00|
|7||Power Finance Corporation Ltd.||Finance Term Lending||₹44,551.37||₹168.75||3.09|
|8||JSW Energy Ltd.||Power Generation, Distribution||₹42,778.01||₹260.10||20.67|
|9||Ashok Leyland Ltd.||Automobiles-Trucks,Lcv||₹42,412.36||₹144.45||67.48|
|10||IDFC First Bank Ltd.||Bank – Private||₹41,885.95||₹63.28||16.86|
|11||Indian Bank||Bank – Public||₹41,323.74||₹332.00||8.14|
|12||Aditya Birla Capital Ltd.||Finance – NBFC||₹41,231.36||₹170.50||8.89|
|13||Indus Towers Ltd.||Telecommunication – Service Provider||₹40,868.72||₹151.70||20.04|
|14||Bandhan Bank Ltd.||Bank – Private||₹37,001.34||₹229.70||11.25|
|15||FSN E-Commerce Ventures Ltd.||e-Commerce||₹36,981.97||₹129.65||0.00|
|16||Hindustan Petroleum Corporation Ltd.||Refineries||₹36,016.94||₹253.90||0.00|
|17||Mahindra & Mahindra Financial Services Ltd.||Finance – NBFC||₹35,428.82||₹286.75||17.10|
|18||Bank Of India||Bank – Public||₹35,426.09||₹86.33||11.37|
|19||REC Ltd.||Finance Term Lending||₹34,863.89||₹132.40||3.35|
|20||Steel Authority Of India Ltd.||Steel & Iron Products||₹34,159.44||₹82.80||9.78|
|21||UCO Bank||Bank – Public||₹34,098.39||₹28.52||18.67|
|22||Petronet LNG Ltd.||Industrial Gases & Fuels||₹33,907.50||₹226.05||10.20|
|23||Indraprastha Gas Ltd.||Industrial Gases & Fuels||₹33,817.04||₹484.25||20.26|
|24||Vodafone Idea Ltd.||Telecommunication – Service Provider||₹33,686.34||₹6.92||0.00|
|25||NMDC Ltd.||Mining & Minerals||₹31,767.77||₹108.40||6.18|
|26||Gujarat Gas Ltd.||Gas Transmission, Marketing||₹31,755.44||₹461.30||19.82|
|27||Jubilant FoodWorks Ltd.||Consumer Food||₹30,682.80||₹465.00||72.81|
|28||General Insurance Corporation of India||Insurance||₹30,623.05||₹174.55||5.01|
|29||Rail Vikas Nigam Ltd.||Engineering – Construction||₹29,576.01||₹141.85||20.55|
|30||Biocon Ltd.||Pharmaceuticals & Drugs||₹29,150.57||₹242.80||75.11|
|31||Bharat Heavy Electricals Ltd.||Engineering – Industrial Equipments||₹28,107.22||₹80.72||36.09|
|32||GMR Airports Infrastructure Ltd.||Engineering – Construction||₹27,572.20||₹45.72||228.20|
|33||Oil India Ltd.||Oil Exploration||₹27,451.72||₹252.60||3.01|
|34||The Federal Bank Ltd.||Bank – Private||₹27,052.42||₹127.80||8.55|
|35||Delhivery Ltd.||Courier Services||₹25,922.40||₹357.60||0.00|
|36||Poonawalla Fincorp Ltd.||Finance – NBFC||₹24,988.86||₹325.35||36.54|
|37||Central Bank Of India||Bank – Public||₹24,636.51||₹28.38||14.68|
|38||Jindal Stainless Ltd.||Steel & Iron Products||₹23,957.83||₹290.70||15.64|
|39||Motherson Sumi Wiring India Ltd.||Steel & Iron Products||₹23,710.40||₹53.63||60.03|
|40||L&T Finance Holdings Ltd.||Finance – NBFC||₹23,500.19||₹94.76||14.48|
|41||Apollo Tyres Ltd.||Tyres & Allied||₹23,416.17||₹369.25||29.66|
|42||Punjab & Sind Bank||Bank – Public||₹22,495.47||₹33.19||17.13|
|43||Devyani International Ltd.||Consumer Food||₹21,342.47||₹176.90||75.98|
|44||Kansai Nerolac Paints Ltd.||Paints||₹21,268.47||₹395.40||52.67|
|45||The Fertilisers And Chemicals Travancore Ltd.||Fertilizers||₹20,913.37||₹323.20||34.12|
|46||Bank Of Maharashtra||Bank – Public||₹20,507.82||₹30.47||7.87|
|47||Sumitomo Chemical India Ltd.||Pesticides & Agrochemicals||₹20,477.45||₹412.00||40.74|
|48||Aditya Birla Fashion and Retail Ltd.||Retailing||₹20,322.84||₹214.20||104.47|
|49||Fortis Healthcare Ltd.||Hospital & Healthcare Services||₹20,093.21||₹265.55||38.25|
|50||LIC Housing Finance Ltd.||Finance – Housing||₹20,069.05||₹364.85||7.13|
|51||Prestige Estates Projects Ltd.||Construction – Real Estate||₹19,616.17||₹487.40||13.83|
|52||The New India Assurance Company Ltd.||Insurance||₹19,586.48||₹118.85||53.01|
|53||Zee Entertainment Enterprises Ltd.||TV Broadcasting & Software Production||₹18,499.60||₹192.60||43.45|
|54||IIFL Finance Ltd.||Finance – Investment||₹17,640.56||₹463.70||11.76|
|55||Laurus Labs Ltd.||Pharmaceuticals & Drugs||₹16,989.05||₹315.40||21.50|
|56||IRB Infrastructure Developers Ltd.||Engineering – Construction||₹16,957.51||₹28.08||22.19|
|57||Sun TV Network Ltd.||TV Broadcasting & Software Production||₹16,955.49||₹428.70||9.73|
We learned about some of the best mid cap stocks under Rs 500 with RoE of 20% and above. A constant theme was most of the companies have put CAPEX plans in place and are eying growth in the coming quarters. Thus, high RoE coupled with good growth is like a double-edged sword for the investors.
In your opinion, what other important metrics should we keep in mind while picking high RoE stocks? How about you let us know in the comments below?
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The post Best Mid Cap Stocks Under Rs 500 – Top Stocks & Complete List appeared first on Trade Brains.