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When investors are creating a portfolio of mid-cap stocks, one of the easiest ways to include high-quality companies is to simply look at the bottom line, i.e. their net profit. Generally, the higher the market cap, the higher the net profit, but that is not always the case.
In case you are looking for strong midcaps that have clocked the highest net income in FY23, here’s a list of the top 2.
Canara Bank Limited
Canara Bank Ltd (NS:) is a public-sector bank with a market capitalization of INR 66,188, making it the 101st largest listed stock. Going one notch lower in the rank will categorize it as a large cap. In FY23, the bank made a profit of INR 11,254.74 crore which was a good 83.7% higher than the previous year, making it currently the highest-profit-making company in the mid-cap space.
It is surprising to note, that despite a 50.7% rally in the last 12 months, the stock is trading at a very low TTM P.E ratio of 5.41. The sector’s average is more than 3 times higher, at 17.71.
REC Limited
REC Ltd (NS:) is primarily in the lending space that specifically caters to the entire power sector in India but it has now started to diversify its loan book towards infrastructure projects. The company has a market capitalization of INR 64,487 crore and is one of the favorite stocks for dividend seekers with a current yield of 5.14%.
The company posted a total net profit of INR 11,166.98 crore in FY23, which is the second-highest in the mid-cap space. The stock turned out to be a goldmine for investors as it has delivered a staggering return of 142.9% in the last 12 months.
Disclosure: I hold REC shares in my portfolio.
In case you want to connect with me, reach out on Twitter. My handle is – aayushxkhanna
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