Mid- and small-cap stocks can have the potential to deliver significant growth, offering investors opportunities to tap into emerging companies with innovative business models and untapped market potential. These stocks, typically characterised by their agility and flexibility, can offer higher returns compared to their large-cap companies. In this article, check how midcap and smallcap stocks performed in 2024, based on 1-yr returns and also know the performance of benchmark indices Nifty Midcap 100 and Nifty Smallcap 100.
| Name | Market Cap (₹ in crore) | PE Ratio | 1Y Return (%) |
| Oracle Financial Services Software Ltd | 1,06,302.93 | 47.90 | 190.66 |
| Housing and Urban Development Corporation Ltd | 50,900.31 | 24.05 | 177.47 |
| Dixon Technologies (India) Ltd | 1,05,209.04 | 286.09 | 175.06 |
| PB Fintech Ltd | 99,817.67 | 1490.26 | 168.54 |
| Kaynes Technology India Ltd | 40,679.48 | 221.94 | 167.28 |
| Indian Renewable Energy Development Agency Ltd | 59,439.92 | 47.47 | 165.21 |
| Rail Vikas Nigam Ltd | 95,619.02 | 60.74 | 157.13 |
| National Aluminium Co Ltd | 45,954.36 | 23.11 | 154.62 |
| Cochin Shipyard Ltd | 42,971.61 | 54.86 | 154.57 |
| Kalyan Jewellers India Ltd | 78,275.63 | 131.04 | 138.46 |
Note: The midcap and smallcap stocks listed here are as of December 12, 2024. The stocks are picked from Nifty Midcap 100 and Nifty Smallcap 100 indices and sorted as per the 1-year returns. The returns are from December 12, 2023, to December 13, 2024.
Oracle Financial Services Software Ltd offers financial software, consulting, IT infrastructure management, custom application development, and outsourced business processing services to the financial services industry.
For the quarter ended September 30, 2024, the company’s revenue stood at ₹1,674 crore, reflecting a 16% growth compared to the same quarter in FY 2024. Operating income saw a notable increase of 36%, reaching ₹724 crore, while net income surged by 38%, totalling ₹578 crore. The products business contributed ₹1,518 crore in revenue, marking a 17% rise, while the services business generated ₹156 crore, up 7%.
Key Metrics:
Housing & Urban Development Corporation Ltd is mainly involved in the business of financing housing and urban development activities in India. For the quarter ended September 30, 2024, the company’s revenue from operations stood at ₹2,517.72 crore, compared to ₹1,864.80 crore in the same quarter in FY 2024. Profit after tax saw an increase reaching ₹688.62 crore, from ₹451.69 crore in Q2 FY 2024.
In November 2024, HUDCO signed an MoU with NBCC for developing a 10-acre land parcel in NOIDA into an institutional complex with world-class amenities. The project will include office space, studio apartments, conference areas, and retail facilities. Additionally, in December 2024, HUDCO partnered with the Delhi Development Authority (DDA) to organise capacity-building programs and provide consultancy services for various DDA projects, including residential, commercial, and institutional developments.
Key Metrics:
Dixon Technologies (India) Limited is an Electronic Manufacturing Services (EMS) company with operations in the electronic products vertical, which include lighting, consumer electronics, closed-circuit television cameras (CCTVs), mobile phones and home appliances. For the quarter ended September 30, 2024, the company’s revenue from operations stood at ₹11,528 crore, showcasing 133% growth from the same quarter in FY 2024. Profit after tax saw a YoY increase of 265% reaching ₹412 crore.
Looking at the significant developments at the company, In October 2024, Dixon signed an MOU with Cellecor to manufacture washing machines and related components for the company. Then, in November 2024, Dixon’s wholly owned subsidiary, Padget Electronics Private Limited, along with Compal, announced the commencement of mass production of Google Pixel smartphones for Compal’s designated client, Google Information Services India Private Limited.
Key Metrics:
PB Fintech Ltd, widely recognised as Policybazaar, is one of the leading online platforms in India for insurance and lending products. Through its flagship brands, Policybazaar and Paisabazaar, the company offers easy access to insurance, credit, and various other financial products.
For Q2 FY25, the company reported an operating revenue of ₹1,167 crore, reflecting a 44% year-on-year growth. While credit revenue declined by 8% YoY, it showed a 9% quarter-on-quarter improvement, indicating a positive shift in business performance. Additionally, the profit after tax (PAT) saw an increase of ₹72 crore, reaching a profit of ₹51 crore.
Key Metrics:
Kaynes Technology is a well-known end-to-end and IoT solutions-enabled integrated electronics manufacturing company.
For Q2FY25, the company reported a revenue of ₹5,721 million, marking a 59% increase compared to ₹3,608 million in Q2FY24. Profit after tax (PAT) also saw a significant increase of 86%, growing from ₹323 million to ₹602 million.
In December 2024, the company announced that its wholly owned subsidiary, Kaynes Holding Pte. Ltd. (Kaynes Singapore), has acquired a controlling stake of 54% in Sensonic GmbH, Austria (Sensonic Austria), a company registered under Austrian law, through the subscription of shares.
Key Metrics:
As of September 30, 2024, the Nifty Midcap 100 Index accounts for ~13% of the free float market capitalisation of the stocks listed on the NSE.
As of November 29, 2024, the Nifty Midcap 100 Index has achieved a total return of 32.12% over the past year. Its quarterly return (QTD) stood at -6.19%. Since its inception (July 18, 2005), the index has delivered a total return of 21.84%. The sector distribution is as follows: Financial Services at 23.05%, Capital Goods at 13.56%, Information Technology at 8.89%, Healthcare at 8.48%, Automobile and Auto Components at 6.99%, and Chemicals at 5.33%.
The Nifty Smallcap 100 Index represents about 5% of the free float market capitalization of the stocks listed on NSE as on September 30, 2024.
As of November 29, 2024, the Nifty Smallcap 100 Total Returns Index has reported a 1-year return of 32.59%. For the QTD period, the returns stand at -2.65%. Since its inception (July 18, 2005), the index has delivered a total return of 16.39%. The sector weights in the Nifty Smallcap 100 Index are led by Financial Services at 24.00%, followed by Capital Goods at 10.57%. Healthcare stands at 9.97%, Information Technology at 7.02%, Consumer Durables at 6.75%, and Construction at 6.31%. These weights reflect the relative size and contribution of each sector within the index.
Apart from these particular stocks listed above, there are several other companies that contributed to the sector. Before picking any stock understand their business model, financial performance and future outlook.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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