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Growth stocks are the stocks of those companies that demonstrate a high potential for development. When investors purchase these shares, it can lead to massive wealth accumulation for them. They usually provide better returns than the prevailing rate of inflation. When these stocks have a market capitalization of anywhere between ₹ 5,000 crores to ₹ 20,000 crores, they are called midcap growth stocks. 

Here are four midcap growth stocks to add to your watchlist: 

Central Depository Services (India) Ltd 

Central Depository Services Limited (CDSL) is a Market Infrastructure Institution (MII). It is a part of the capital market structure, providing services to all market participants. It facilitates the holding of securities in the dematerialised form and is an enabler for securities transactions. It has a market capitalization of ₹ 14,846 crores. 

The company is almost debt free with a debt-to-equity ratio of 0.00. Its profit has grown at 29.4 per cent CAGR and its median sales growth for the last 10 years is 16.5 per cent. It has a dividend yield of 1.06 per cent. It has a return on equity of 31.6 per cent. 

Tanla Platforms Limited 

Tanla Platforms is a cloud communications provider that enables businesses to communicate with their customers and intended recipients. It is a global application to person (A2P) service provider. The company has a market capitalization of 11,324 crores. 

The company’s shares climbed 5 per cent higher after its board approved a ₹ 170 crore share buyback. It has delivered a good net profit growth of 67.5 per cent CAGR over the last five years. Its median sales growth for the last ten years is at 34.2 per cent. It is almost debt free with a debt-to-equity ratio of 0.04. Further, it has a good return on equity (ROE) track record at an average of 27.7 per cent for three years. It has a dividend yield of 0.84 per cent. 

Alkyl Amines Chemicals Limited 

Alkyl Amines is a leading manufacturer of aliphatic amines, amine derivatives and speciality amines. It is a mid-cap company with a market capitalization of ₹ 15,559 crores. 

The company has reduced its debt and has a debt-to-equity ratio of 0.02, indicating that it is almost debt free. It has delivered good profit growth of 34.8 per cent CAGR over the last 5 years and its median sales growth is 21.9 per cent for the last 10 years. It has a dividend yield of 0.33 per cent and a good return on equity (ROE) track record for 3 Years at 35.4 per cent. 

RHI Magnesita India Ltd

RHI Magnesita India Ltd is in the business of manufacturing and marketing special refractory products, systems and services to the steel industry in India and globally. It has a market capitalization of ₹ 10,158 crores. 

The company is almost debt free with a debt-to-equity ratio of 0.06. It has delivered good profit growth of 31.2 per cent CAGR over the last 5 years and its sales grew at a CAGR of 18.62 per cent over the last 10 years. It has a dividend yield of 0.40 per cent and a good return on equity (ROE) track record for 3 Years at 24.5 per cent. 

Written by Simran Bafna

Disclaimer

The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.