The midcap rally in the recent past has been no less than a stellar one. The recovery in the broader markets has mostly been enjoyed by the small and mid-cap spaces. However, in case you are confused as to which shares have a higher probability to deliver decent gains further down the road, here are two midcap counters that garnered the highest DII interest in Q4 FY23.
Sona BLW Precision Forgings Limited
Sona BLW Precision Forgings (NS:SONB) is an auto parts manufacturer with a market capitalization of INR 31,006 crores. The company clocked a record revenue of INR 2,687.18 crores in FY23 while net income jumped to the highest-ever figure of INR 395.29 crores. It is interesting to see that the company has been growing its revenue at an impressive 5-year CAGR of 33.7%.
This company remained the favorite of DIIs in Q4 FY23, as they ramped up their stake by 6.75% to 31.28%. In fact, FIIs also jumped on the train and more than doubled their stake, from 11.27% in December 2022 to 24.69% in March 2023. On the weekly chart, the stock has good support around INR 480 which can be a good level for accumulation.
Coforge Limited
The next one on the list is from the IT space. Coforge (NS:COFO) provides services such as cloud computing, application development and maintenance, managed services etc., and has a market capitalization of INR 27,907 crores. FY23 was a stellar year for the company as it posted its highest-ever annual revenue of INR 8,076.5 crores and a profit of INR 693.8 crores.
DIIs have increased their stake by 5.46% to 32.2% in the March 2023 quarter, from 26.74% in the previous quarter. The stock is a bit more expensive than its peers such as TCS (NS:TCS) and Infosys (NS:INFY), however, a level of INR 3,200 can be looked for in case investors are willing to invest in this growth-oriented IT firm.
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