Amfi stock classification: Multibagger midcaps NHPC, BHEL, 5 others likely to turn largecaps

Seven midcap stocks Hero Motocorp, Zydus Lifesciences, JSW Energy, NHPC, Bharat Heavy Electricals (BHEL), Bosch and Samvardhana Motherson International — are likely to make the cut into the largecap category in the upcoming Amfi Semi-Annual Categorisation for H2CY2024, IIFL Securities said in a note. The semi-annual cut-off date is June 30, 2024.

Meanwhile, existing largecaps ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance Company, Polycab India, SRF, Marico, SBI Cards & Payment Services and Berger Paints are likely to get demoted to midcaps, this note said.

These seven midcap stocks, which are expected to see a market cap classification upgrade, have witnessed a strong rally in the last one year with four of them turning multibaggers. BHEL tops the chart with 247% returns. Meanwhile, Hero Moto, Samvardhana and Bosh have also yielded high double-digit returns up to 96%.


As for the likely exits, all but Polycab India and ICICI Lombard have been laggards, underperforming the Nifty, which has delivered 25% returns over a 1-year period. SBI Card and Berger Paints have been the worst performers with negative returns of 23% and 11% during this period.


IIFL Securities also expects two new entries into the midcap space -- one is Bharti Hexacom and the other is Go Digit General Insurance.

IIFL Securities has also identified 15 stocks which will likely transition to midcaps from smallcaps. The likely additions are Housing & Urban Devp. Corpn (HUDCO), I R B Infrastructure Developers, Mangalore Refinery & Petrochemicals (MRPL), Bharat Dynamics, Global Health (Medanta), BSE, NLC India, Hitachi Energy India, Tata Investment Corporation, National Aluminium Company (NALCO), Hindustan Copper, Cochin Shipyard, ITI, Motilal Oswal Financial Services (MOFSL) and Godrej Industries.

On the other hand, 17 stocks are expected to move to the smallcap category from the current midcap category viz. Narayana Hrudayalaya, Sun T V Network, Bayer Cropscience, Vedant Fashions, Grindwell Norton, Timken India, Sundram Fasteners, Hatsun Agro Product, Kansai Nerolac Paints, S K F India, Creditaccess Grameen, Relaxo Footwears, Ramco Cements, Devyani International, Piramal Enterprises, IIFL Finance and Zee Entertainment Enterprises (Zee).

IIFL also estimates 26 new entrants in the smallcap club which include Kronox Lab Sciences, Jyoti C N C Automation, Mukka Proteins, Gopal Snacks, Juniper Hotels and Indegene among others.

Also Read: Suzlon Energy, PB Fintech, NHPC among 19 midcap additions by mutual funds in May

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)