5 Midcap Stocks that are likely to Outperform the Market Post-Pandemic


4 min read
5 Midcap Stocks that are likely to Outperform the Market Post-Pandemic


When investors observed Golden Cross and Bullish Divergence (MACD & RSI) simultaneously for the first time after 24 Feb 2020 in the NIFTY Midcap Index then they started taking long positions as the index seems to be coming out of the oversold territory. Result: The index rallied 22% within 14 trading sessions.

Source: https://upstox.com/open-demat-account/?f=HANP

The best part was, many of the Fundamentally strong Midcap stocks still didn’t participate in the rally and are likely to outperform the market post-pandemic because of two reasons. Either investors would start doing bottom fishing as valuations are pretty cheap or they would average their holding to drag down their buying price.

Based on certain factors I have listed down 5 fundamentally strong Midcap Stocks that are likely to Outperform the Market Post-Pandemic :


1. Endurance Technologies Ltd (585 Rs.)

About the company: Endurance Technologies Ltd. engages in the manufacture of two-wheeler and three-wheeler automotive components. It offers aluminum die castings, suspension, transmission and brake systems products. The company was founded in November 1985 and is headquartered in Aurangabad, India.

Risk Profile: HIGH

Fundamental Analysis at a glance:

Market Cap: 8,136 Cr | Stock P/E: 13.40|ROCE: 24.55 % | ROE: 21.25 % | Free cash flow 5years: 1,036 Cr. | Debt to equity: 0.16 | Interest Coverage: 39.15 | Inventory turnover ratio: 14.53 | Promoter holding: 75.00 % | Pledged percentage: 0.00 % | Compounded Sales Growth of last 5 years: 12.26% | Compounded Profit Growth of last 5 years: 19.96%


2. Marico Ltd. (307 Rs.)

About the company: Marico Ltd. engages in the provision of beauty and wellness space products and services. It operates through India and International geographical segments. The India segment comprises of domestic consumer goods. The brand portfolio of the firm consists of Livon, Parachute Advanced, Set Wet, Saffola, and others. The company was founded on April 2, 1990 and is headquartered in Mumbai, India.

Risk Profile: MID

Fundamental Analysis at a glance:

Market Cap: 39,874 Cr | Stock P/E: 32.10 | ROCE: 40.80 % | ROE: 39.67% | Free cash flow 5years: 3,151 Cr. | Debt to equity: 0.10 | Interest Coverage: 32.42 | Inventory turnover ratio: 5.02| Promoter holding: 59.60 % | Pledged percentage: 0.00 % | Compounded Sales Growth of last 10 years: 11.95% | Compounded Profit Growth of last 10 years: 18.74%

Note: A few days back HSBC Upgraded its rating on Marico to ‘Buy’ and cut price target to Rs 370 from Rs 400.


3. L&T Finance Holdings Ltd (61.10 Rs.)

About the company: L&T Finance Holdings Ltd. engages in the provision of financial products and services across retail, corporate, housing, and infrastructure finance sectors. It operates through the following segments: Rural Business, Housing Business, Wholesale Business, Defocused Business, and Others. The Rural Business segment comprises farm equipment finance, two wheeler finance, and micro loans. The Housing Business segment includes home loans, loan against property, and real estate finance. The Wholesale Business segment covers infrastructure finance and structured corporate loans. The Defocused Business segment consists commercial vehicle finance, construction equipment finance, SME term loans, and leases. The Others segment deals in the asset and wealth management. The company was founded on May 1, 2008 and is headquartered in Mumbai, India.

Risk Profile: HIGH

Fundamental Analysis at a glance:

Market Cap: 11,889 Cr. | Stock P/E: 6.38 | Promoter holding: 63.72 % | Pledged percentage: 0.00 % | Compounded Sales Growth of last 10 years: 281% | Compounded Profit Growth of last 5 years: 103% | ROE: 17.96 % | Loan book: 99,121 Cr | Avg Asset Ander Management (AAUM): 99,108 Cr. | Serving 1.1 crore customers (Get more details from Annual Report)


4. Hexaware Technologies Ltd (271 Rs.)

About the company: Hexaware Technologies Ltd. is a holding company, which engages in the IT, BPO, and consulting businesses. It operates through the following segments: Travel and Transportation; Banking and Financial Services; Healthcare and Insurance; Professional services; and Manufacturing & Consumer. Its services include application transformation management; business intelligence and analytics; digital assurance; enterprise solutions; customer experience transformation; business process services; digital customer; and infrastructure management services. The company was founded by Atul Kantilal Nishar and Alka Atul Nishar in 1990 and is headquartered in Mumbai, India.

Risk Profile: HIGH

Fundamental Analysis at a glance:

Market Cap: 7,867 Cr. | Stock P/E: 12.01 | ROCE: 33.16 % | ROE: 26.53% | Free cash flow 5years: 1,729 Cr. | Debt to equity: 0.05 | Interest Coverage: 108.44 | Promoter holding: 62.44 % | Pledged percentage: 0.00 % | Compounded Sales Growth of last 10 years: 14.97% | Compounded Profit Growth of last 10 years: 25.68% | Dividend Payout Ratio: 43.32 %


5. K E C International Ltd (186 Rs.)

About the company: KEC International Ltd. engages in the provision of infrastructure engineering, procurement, and construction services. Its business units include power transmission and distribution, cables, railways, renewables, civil, and smart infrastructure. The company was founded in 1945 and is headquartered in Mumbai, India.

Risk Profile: HIGH

Fundamental Analysis at a glance:

Market Cap: 4,702 Cr | Stock P/E: 8.23 | ROCE: 28.63 % | ROE: 22.36% | Free cash flow 5years: 2,655 Cr. | Debt to equity: 0.22 | Interest Coverage: 3.51| Promoter holding: 51.59 % | Pledged percentage: 0.00 % | Compounded Sales Growth of last 10 years: 12.35% | Compounded Profit Growth of last 5 years: 15.55% | Dividend Payout Ratio: 14% | Dividend Yield: 10.71 %

Note: These recommendations and analysis are for knowledge purpose only, if you are considering it for investment then kindly do your own research or consult with your investment advisor.


In the short term, the market may experience intense headwinds as Corona cases are increasing exponentially and the condition is still awful. If you are considering buying any of these stocks then buy it for the long term as, after every recession, the market never disappointed the investors in the long run.

Happy Investing!

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Akshay Seth
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