Mid-cap stocks offer an attractive balance of growth potential and stability for long-term investors. Sandwiched between large-caps and small-caps, the mid-cap companies.. As we look ahead to 2024, here are 5 promising mid-cap stocks for long-term investors to consider (share price as on 11th July 2024):
1. Indus Towers Ltd.
This is one of the quite promising mid cap stocks. Indus Towers Limited is an India-based telecom infrastructure company. They deploy, own, and manage telecom towers. It offers towers, power, space, tower operations centers, and green technology.
- Sector: Telecom
- Market Cap: Rs. 1,03,095 crore
- P/E Ratio: 17.08
- Dividend Yield: 2.13%
- Share Price: Rs 391.35
2. Tata Communications Ltd.
Tata Communication Ltd. is a global provider of digital ecosystems. It offers digital transformation of enterprises globally. Its Data Services segment includes core and connectivity services, digital platforms, and connected services.
- Sector: Telecommunication
- Market Cap: Rs. 52, 839 crore
- P/E Ratio: 54.56
- Dividend Yield: 0.9%
- Share Price: Rs. 1865.20
3. Federal Bank Ltd
Federal Bank has been growing steadily as a mid-sized private sector bank. It has been working on improving its asset quality and building digital banking capabilities. With a strong presence in South India and growing national operations, Federal Bank brings good long-term growth potential.
- Sector: Private Banks
- Market Cap: Rs. 44,253 crore
- P/E Ratio: 11.41
- Dividend Yield: 0.66%
- Share Price: Rs. 191.5
4. Petronet LNG Ltd
As the country’s largest importer of liquefied natural gas, Petronet LNG is intrinsically crucial to its energy infrastructure. Steady financial performance and an attractive dividend yield are the other positives. With natural gas demand expected to rise in India, Petronet LNG is well-positioned for long-term growth.
- Sector: Oil & Gas Storage & Transportation
- Market Cap: Rs. 49,834 crore
- P/E Ratio: 13.64
- Dividend Yield: 0.90%
- Share Price: Rs. 341.55
5. Aditya Birla Capital Ltd
Aditya Birla Capital is the holding company for the financial services businesses of Aditya Birla Group. Its diversified portfolio comprises life insurance, asset management, lending, and so on, providing exposure to multiple fast-growing segments of the Indian financial sector.
- Sector: Diversified Financials
- Market Cap: Rs. 61,782 crore
- P/E Ratio: 18.52
- Share Price: Rs. 227.96
Investing Strategy for Mid-Cap Stocks
If you want to invest in mid-cap stocks for the long term, engage with businesses that have strong financials, rising profits, and clean balance sheets.
- Look for companies with unique market positions or competitive advantages in their industries.
- Study the past record and the vision of the management team.
- Consider how broader economic and sector trends could impact the growth prospects for the company.
- Growth is great, but don’t overpay for it. Compare their valuation metrics with that of the industry in terms of the P/E ratio.
- This is about ensuring proper diversification across sectors so that effective risk management is ensured.
- Be prepared to hold these investments for several years if their full potential is to be realized.
Conclusion
Mid-cap stocks offer a balance between growth and stability for a long-term portfolio. The five mentioned here include Indus Tower, Tata Communications, Federal Bank, Petronet LNG, and Aditya Birla Capital—all from varied sectors with strong fundamentals and growth prospects. Remember that stock markets are very volatile. Do your research before investing in mid-cap stocks.
