Chasing multibaggers: 5 stocks that jumped from microcap to midcap in AMFI’s rejig

Twice a year, Association of Mutual Funds in India (AMFI), the mutual fund industry’s self-regulatory body, publishes the updated list of large-cap, mid-cap and small-cap stocks, in keeping with capital market regulator SEBI’s (Securities and Exchange Board of India) definition. The latest list was published on January 4.
• Large-cap stocks: Top 100 companies, in terms of full market capitalisation
• Mid-cap stocks: 101st to 250th stock
• Small-cap stocks: From 251th stock onwards

Seven stocks graduated from microcaps to midcaps over a period of four years -- from December 2019 to December 2023 -- as per a Moneycontrol Personal Finance analysis. Since the AMFI doesn't provide any definition of microcap stocks, we considered stocks ranked above 500 to be microcap stocks. For the study, we compared the list of December 2019 and December 2023.
Of these seven stocks, mutual funds have invested in five. Fund managers identified these stocks to be in the early stage of their growth cycle. They delivered multi-bagger returns to the schemes that held them during the last four years.

CG Power and Industrial Solutions
AMFI’s rank as of December 2019: 689
AMFI’s rank as of December 2023: 103
Average M-CAP as of December 2019 (AMFI data): Rs 975 crore
Average M-CAP as of December 2023 (AMFI data): Rs 63,871 crore
Sector: Heavy Electrical Equipment

Also see: Momentum continues in value funds: Here are their top newly added stocks

The Fertilizers and Chemicals Travancore
AMFI’s rank as of December 2019: 606
AMFI’s rank as of December 2023: 165
Average M-CAP as of December 2019 (AMFI data): Rs 1,332 crore
Average M-CAP as of December 2023 (AMFI data): Rs 38,594 crore
Sector: Fertilizers

Suzlon Energy
AMFI’s rank as of December 2019: 543
AMFI’s rank as of December 2023: 168
Average M-CAP as of December 2019 (AMFI data): Rs 1,700 crore
Average M-CAP as of December 2023 (AMFI data): Rs 37,519 crore
Sector: Heavy Electrical Equipment

Also see: Mutual fund industry assets top Rs 50 trillion landmark: what helped achieve this number?

Poonawalla Fincorp
AMFI’s rank as of December 2019: 538
AMFI’s rank as of December 2023: 205
Average M-CAP as of December 2019 (AMFI data): Rs 1,720 crore
Average M-CAP as of December 2023 (AMFI data): Rs 30,129 crore
Sector: Non-Banking Financial Company

Jindal Stainless
AMFI’s rank as of December 2019: 551
AMFI’s rank as of December 2023: 167
Average M-CAP as of December 2019 (AMFI data): Rs 1,641 crore
Average M-CAP as of December 2023 (AMFI data): Rs 37,727 crore
Sector: Iron & Steel

Also see: 10 midcap stocks that rewarded MF investors in 2023