Introduction
Midcap and Small cap stocks – The new market revision has set out a purchasing freedom for financial backers. While many investors focus on identifying fundamentally strong stocks that have corrected significantly, there is another strategy worth considering. This strategy involves looking for stocks that have shown resilience during the sell-off and are exhibiting strong recovery. These stocks tend to grow even more when the market recovers. In this blog, we will discuss a list of fundamentally strong midcap and small cap stocks that have shown strength during the market correction and are worth considering for investment.
The Strength and Recovery Stocks
Here are some stocks ( Midcap and Small cap stocks ) that have demonstrated strong recovery and are showing resilience during the market correction:
Indo Count
Indo Count is the world’s largest bed linen company, with around 70% of its business coming from the US. Despite a recent correction, Indo Count has shown tremendous strength with its share price currently trading just below 10% from its peak. The company’s market cap is around 6,500 CR, and it is trading at a P/E ratio of 19.
Scams
Scams is a company with a 65-70% market share in the RTA sector. It has corrected only 7% during the recent market correction, indicating its strength and resilience. With a market cap of around 15,000 CR and a P/E ratio of 46, Scams is a stock worth considering.
CDSL
CDSL is a leader in the Dem sector of India, with nearly 70% market share. The stock has already doubled in the last year and has corrected 16% during the recent fall. With a market cap of around 18,000 CR and a P/E ratio of 51, CDSL is showing great strength and recovery potential.
Sansar Engineering
Sansar Engineering is an auto exil company that manufactures components for various sectors. It has diversified into the EV segment and aerospace sector, which will drive its growth in the future. The stock has shown resilience with only an 11% fall during the recent correction. With a market cap of around 5,200 CR and a P/E ratio of 30, Sansar Engineering is worth considering.
Inox India
Inox India is a recently listed company that manufactures cryogenic equipment. Despite the market correction, it has only fallen around 12%, indicating its strength. Inox India commands a market cap of around 10,000 CR and is trading at a P/E ratio of 57.
Nama Wealth
Nama Wealth operates in the wealth management sector and is experiencing growth due to the rising affluent Indian population. Despite the correction, it has only fallen 8%. Nama Wealth commands a market cap of around 15,000 CR and a P/E ratio of 28, which is reasonable compared to its peers.
CMS Info System
CMS Info System is the largest cash management company in India, with a significant role in currency circulation and technology solutions. The stock has not corrected during the recent market fall and commands a market cap of 6,200 CR. It is trading at a P/E ratio of 18.
Samy Hotel
Samy Hotel is a recently listed IPO and the third-largest hotel chain in India. Despite the correction, it has fallen only 10%, indicating its resilience. Samy Hotel commands a market cap of around 4,600 CR with a P/E ratio of 24.
Naran Rudala
Naran Rudala is a reasonably valued hospital company with a correction of around 14%. With a market cap of 25,500 CR and a P/E ratio of 32, it is worth considering for investment.
Max India
Max India operates in the senior care sector and plans to launch significant residential areas for senior care. The stock has shown strength during the correction and is worth considering. Max India has a market cap of around 9,000 CR.
Watek WABC
Watek WABC is involved in the management of drinking water, wastewater treatment, and industrial water treatment. It has corrected only 13% during the recent fall and commands a market cap of 4,300 CR, trading at a P/E ratio of 14.4.
Sona BW
Sona BW is a top company in the EV auto exil space and has shown great strength during the correction. It is down only 10% from its peak. With the Indian government cutting import duties on EV cars, Sona BW can be a big beneficiary. The stock is trading at a P/E ratio of 75.
Stocks to Consider for Investment
Apart from the stocks mentioned above, there are other stocks worth considering in the market correction. These stocks have corrected significantly and are attractive for investment:
Goa’s Export
Goa’s Export is a textile exporter with a correction of around 28%. With a market cap of 4,500 CR and a P/E ratio of 33, it is worth considering for investment.
Craftsman Automation
Craftsman Automation is a precision equipment manufacturer with a correction of around 27%. With a market cap of 8,500 CR and a P/E ratio of 26, it is an attractive stock for investment.
Equitas Small Finance
Equitas Small Finance is a preferred pick in the small finance sector with a correction of around 19%. With a market cap of 10,700 CR and a P/E ratio of 13.7, it is a value buy.
Army Organics
Army Organics is a specialty chemical company with a correction of around 23%. With a market cap of 4,000 CR and a P/E ratio of 55, it is a great opportunity to consider in the portfolio.
Mrs. Bector
Mrs. Bector is a manufacturer of biscuit and bakery products with a correction of around 25%. With a market cap of 6,000 CR and a P/E ratio of 45, it is expected to benefit from the consumption theme in India.
Angel One
Angel One is a complete financial firm with a correction of around 32%. With a market cap of 22,000 CR and a P/E ratio of 21, it is poised to benefit from the growing investment market in India.
Sula Wine
Sula Wine is the largest producer of wine in India with a correction of around 25%. With a market cap of 4,400 CR and a P/E ratio of 45, it is a stock worth considering.
Conclusion
The market correction has created an opportunity to invest in fundamentally strong midcap and small cap stocks. By considering stocks that have shown strength and resilience during the correction, investors can potentially benefit from their growth potential. It is important to conduct thorough research and analysis before investing in any stock, as market conditions can change. Remember to invest systematically and not rush into making investment decisions.
Disclaimer: The information is only for information purpose only. It is always recommended to consult with certified financial experts before making any investment decisions. Follow busymoneyfreak.com .