Amfi stock classification: Multibagger midcaps NHPC, BHEL, 5 others likely to turn largecaps

Seven midcap stocks, including Hero Motocorp, Zydus Lifesciences, and JSW Energy, are expected to be promoted to the largecap category in the upcoming Amfi Semi-Annual Categorisation for H2CY2024, according to a note from IIFL Securities. The cut-off date for this semi-annual categorization is June 30, 2024.

On the other hand, existing largecaps such as ICICI Prudential Life Insurance Company and Polycab India are likely to be demoted to midcaps, as per the same note.

These seven midcap stocks have seen significant growth over the past year, with four of them becoming multibaggers. BHEL stands out with 247% returns, while others like Hero Moto and Bosch have also shown strong double-digit returns.

Meanwhile, some current largecaps have underperformed, with SBI Card and Berger Paints showing negative returns during the same period.

In addition to the expected changes in the largecap and midcap categories, IIFL Securities predicts new entries into the midcap space, including Bharti Hexacom and Go Digit General Insurance.

Furthermore, there are 15 stocks identified to transition from smallcaps to midcaps, with names like Housing & Urban Devp. Corpn and Bharat Dynamics making the list.

Conversely, 17 stocks are expected to move from midcaps to smallcaps, including companies like Vedant Fashions and Zee Entertainment Enterprises.

Additionally, there are 26 new entrants expected to join the smallcap club, bringing diversity to this segment of the market.

DailyBubble sees these potential changes in market cap classifications as a reflection of the dynamic nature of the stock market and encourages investors to stay informed and adaptable to capitalize on emerging opportunities.