Amfi stock classification: Multibaggers BHEL, NHPC, 5 more stocks to likely turn largecaps
In the upcoming Amfi Semi-Annual Categorisation for the second half of 2024, seven stocks, including Hero MotoCorp and BHEL, are poised to move to the large-cap category from mid-cap. Stellar rallies have propelled their returns over the past year.
Seven stocks including two-wheeler major and state-run Bharat Heavy Electricals () and could move to the largecap category from midcap in the upcoming Semi-Annual Categorisation for second half of 2024 when the official list is released in July. The other stocks which could make a cut are , , and , said .BHEL, Bosch and Cummins India are borderline stocks, the note said.
Their likely promotion to the largecap category comes on the heels of a stellar rally where BHEL (256%), JSW Energy (134%), Cummins (127%) and NHPC (123%) have delivered multibagger returns in last one year while Hero MotoCorp, Zydus and Bosch have given returns between 94% and 62% in this period.
Meanwhile, an equal number of stocks are likely to be demoted from largecap category to midcap viz. , , , ICICI Lombard, Polycab India, ICICI Prudential Life Insurance. ICICI Lombard, Polycab India and ICICI Pru Life are on the borderline and may face similar fate.
The likely climbdown in these stocks is on the relative underperformance in these stocks. Berger Paints (-4%), SBI Card (-19%) and SRF (-11%) have seen their prices erode over the last 12 months. Though Polycab India (89%) and ICICI Lombard (49%) have managed to outperform Nifty (21%) but it may not be enough for these stocks to hold on to their status if Nuvama's estimates are to come true.
Moreover, 18 stocks are expected to move to the midcap category from the current smallcap category with newly-listed Bharti Hexacom also likely to make the cut. Smallcaps which may graduate to midcap include HUDCO, IRB Infra Developers, MRPL, Global Health (Medanta), BSE, Bharat Dynamics, Hitachi Energy, NLC India, Tata Investment Corporation, Hindustan Copper, National Aluminium Company, ITI, Motilal Oswal Financial Services (MOFSL), Apar Industries, Cochin Shipyard, Godrej Industries and Blue Star.
Cochin Shipyard, Godrej Industries and Blue Star are borderline counters.
On the contrary, 18 could find themselves slipping into the smallcap space. These are Zee Entertainment Enterprises, IIFL Finance, Devyani International, Piramal Enterprises, The Ramco Cement, Relaxo Footwear, SKF India, CreditAccess Grameen, Kansai Nerolac, Hatsun Agro, Sundaram Fasteners, Grindwell Norton, Timken India, Vedant Fashions, Bayer Crop Sciences, Sun TV Network Narayana Hrudayalaya and Glenmark Pharma. Bayer Crop, Sun TV, Narayana and Glenmark are on the borderline.
The cut-off period spans between January 1 and June 30, 2024.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Source: Stocks-Markets-Economic Times
