IIFL pointed out that in a Bull run, quality midcaps can outperform large caps substantially and that investors should increase weightage to midcaps in their long term portfolio. For making most of the ensuing Bull run, IIFL handpicked thirteen interesting mid cap stocks having potential to double in two years. All stocks rank high in terms of earnings growth potential, balance sheet strength, future cash flows, management bandwidth and valuation appeal.
In the set of 13 stocks, there is one Pharma, three auto ancillary, one agriculture, three capital goods, four financials and one cement stock.
| Stock | Price on 30.06.2014 | Price on 05.03.2015 | Gains (%) |
| Alembic Pharma | 269 | 430 | 59 |
| Bharat Forge | 608 | 1292 | 112 |
| Dhanuka Agritech | 397 | 642 | 61 |
| Finolex Cables | 176 | 279 | 58 |
| Greaves Cotton | 115 | 145 | 26 |
| Indiabulls Housing Fin | 383 | 632 | 60 |
| JK Lakshmi Cement | 210 | 374 | 78 |
| Jyoti Structures | 59 | 32 | (45) |
| Kirloskar Oil Engines | 238 | 288 | 15 |
| LG Balakrishnan | 439* | 530 | 20 |
| Magma Fincorp | 98 | 100 | – |
| PTC India Fin Services | 32 | 62 | 93 |
| SREI Infra Finance | 48 | 50 | – |
| Total | 537 | ||
| Average gains | 41% | ||
Two stocks have put up a stellar performance with gains in excess of 90%. Five stocks have gains in excess of 50%. One stock has a deep cut. Two stocks are flat. The rest have put up a reasonable show. The average gains from the 13 stocks is 41%. If you annualize the gains, it works out to 62%, which is quite commendable.
A detailed explanation of the merits and risk factors of each stock is given in the report.
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