3 Midcaps with HIGHEST MF Holding!

As midcaps are going all guns blazing since April 2023, investors have made decent money in this space in a short span of time. In fact, the Nifty Midcap 100 index rallied over 14%, from 29 March 2023 to 29 May 2023.

In case you are wondering which midcaps are favorites of mutual funds, here’s a list of the top 3.

Federal Bank Limited

Federal Bank Ltd. (NS: FED ) is a mid-cap private-sector lender, with a market capitalization of INR 26,518 crores. The bank closed FY23 with its highest-ever revenue of INR 20,248.01 crores, a good 22.7% YoY jump. The net income figure jumped 58.9% YoY to INR 3,130.66 crores, translating into net profit margins of 15.46%, the highest since FY15, at least.

As per the March 2023 shareholding pattern, mutual funds hold a very high stake of 33.59% in the company, up from 32.4% in the previous quarter, making it the favorite of mutual funds in the midcap space. Despite growing earnings, it is trading at a P/E ratio of just 8.47.

Max Financial Services Limited

Max Financial Services Ltd (NS: MAXI ) is in the insurance business, having a market capitalization of INR 23,605 crores. The stock is down 11% in the last 12 months and is currently recovering from its 52-week lows. In FY23, the company clocked revenue of INR 31,431.06 crores and net profit of INR 378.48 crores.

It is the second-favorite midcap of mutual funds and they hold a 29.78% stake in the company, as of the March 2023 quarter, up from 28.05% in the same period last year. In fact, FIIs also hold a gigantic stake of 47.47% in the company.

Zee Entertainment Enterprises Limited

Zee Entertainment Enterprises Ltd. (NS: ZEE ) is a well-known broadcasting and entertainment company with a market capitalization of INR 18,326 crores. Its FY23 performance wasn’t a good one, with revenue falling 1.6% to INR 8,170.93 crores and profit tanking by a mammoth 95% to INR 47.79 crores. In fact, its net profit has been falling at a yearly rate of 15.3% for the last 5 years.

Poor performance has made the stock quite expensive, with its P/E ratio shooting up to 383.5. Despite a bad year, mutual funds have consistently increased their stake in every quarter of FY23, from 15.44% in March 2022 to 27.88% in March 2023, making it their third favorite in the mid-cap space.

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