Top five midcap performers of 2024: High returns from Cochin Shipyard, Force Motors and other boost investors wealth

Broader Midcap indices raced to all-time highs last week backed by domestic investors. Midcap and smallcap indices have outperformed benchmark indices, NIFTY and SENSEX, despite overvaluation concerns.

The NIFTY Midcap 100 has gained 12.62% so far this year while the NIFTY50 has rallied 3.77% year-to-date.

The BSE Midcap index hit a year high of 43,115.54 in the special trading session on May 18 driven by gains in Cummins India, Balkrishna Industries and Aurobindo Pharma Ltd.

Some of the midcap companies have given multifold returns to investors in 2024 so far.

Here is the list of top five midcap performers in 2024

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Cochin Shipyard (Mcap - ₹40,803 crore, YTD returns – 146%)

Cochin Shipyard Ltd, the largest shipbuilding and maintenance facility in India, has given returns up to 146% so far this year in 2024. A healthy orderbook and inflow of new contracts have aided the recent rally in the stock.

Shares of the company have rallied more than 20% in the past week and over 49% in the last one month.

Earlier this month, the state-owned company announced receiving a large order from a European client, for the design and construction of a Hybrid Service Operation Vessel (Hybrid SOV) with an option for two more such vessels. As per the Cochin Shipyard classification, an order in the range of ₹500 to 1,000 crore is categorised as large order.

The company’s order book stood at ₹22,000 crore as of September 2023.

The Miniratna PSU built the country’s first indigenous aircraft carrier for the Indian Navy, the INS Vikrant. It also trains engineers in marine engineering.

Puravankara Ltd (Mcap - ₹10,200 crore, YTD returns- 141%)

The Bengaluru-based real estate developer has given returns of around 141% in the current year so far. The company achieved its highest annual sales value of ₹5,914 crores in FY24 which was up 90% compared to ₹3,107 crore in FY23.

Its customer collections from the real estate business were at a record ₹3,609 crore in FY24 compared to ₹2,258 crores in FY23, up by 60%. The company also emerged as preferred developer for a ₹2,000 crore project in Mumbai.

The realty firm targets expansion in Delhi NCR market. All these factors have led to a significant rally in the stock.

Force Motors (Mcap- ₹11,730 crore, YTD - 158%)

The Pune-based commercial vehicle and utility vehicle maker has given returns of over 158% in 2024 so far. Strong sales growth in FY 2023-24 has driven the stock prices of the company.

Force Motors reported a 35% growth in revenue for the March quarter. The commercial vehicles producer also announced a ₹20 per share dividend to shareholders, which boosted its shares.

Transformers and Rectifiers (India) Ltd (Mcap - ₹8,900 crore, YTD returns - 166%)

Transformers and Rectifiers (India) Ltd shares have given returns of around 166% in 2024 so far. Strong financial results for the March quarter have aided the rally in the share price.

The company reported a nearly 333% jump in its consolidated net profit to ₹41.62 core in the last quarter compared to ₹9.6 crore in Q4FY23. Consolidated revenue was ₹514 crore in the March quarter compared to ₹439.5 crore in Q4FY23.

The expectations of rise in demand for power transformers amid growing demand for electricity in the country and supply order wins have propelled the stock price.

IFCI (Mcap - ₹16,570 crore, YTD returns- 110%)

The financial sector firm IFCI Ltd has gained around 110% this year so far on strong quarterly results. The company reported a consolidated profit after tax of ₹157.32 crore for the March quarter against a loss of ₹241 crore in the year-ago quarter. The company also turned profitable in FY 2023-24 with a PAT of ₹241.05 crore against a loss of ₹119 crore in the previous financial year.

The government also infused around ₹500 crore into the financial institution bolstering its shares.

To sum up

Midcap shares have turned out to be wealth creators for investors in 2024 despite valuation concerns. In addition to these top performers, BHEL, IREDA and SAIL have also generated handsome returns for investors.

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