Chasing multibaggers: 5 stocks that jumped from microcap to midcap in AMFI’s rejig
Seven stocks that were microcaps have been reclassified as midcap stocks over the last four years, as per AMFIs’ January 2024 classification rejig. Fund managers identified five of them to be in the early stage of their growth cycle and invested in them
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
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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.
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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
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
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
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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
