The mid-cap rally that has been going on for over 3 months now has turned a lot of portfolios into green. The Nifty Midcap 100 index, jumped from 29,324 on 28 March 2023 to an all-time high of 35,980, marked yesterday, delivering a massive gain of over 22.6% in a little less than 100 days.
In case you think you have missed the rally and all stocks have become expensive to go long on, here are 2 mid-cap counters that are still trading at dirt-cheap valuations, with a P/E ratio of less than 4.
Piramal Enterprises Limited
Piramal Enterprises Ltd (NS:PIRA) is a diversified financial business with a market capitalization of INR 22,379 crores. The company recently got demerged and its pharma arm which as separately listed, after which we had seen a consistent decline in the share price. On the ex-demerger day, the stock opened at INR 1,055.05 on 30 August 2022 and soon fell to a 52-week low of INR 630.45 on 28 March 2023.
This 40% decline seems to be the end of the bear run as the stock sharply turned to the north from there, and is currently up 51.6% from the lows to the CMP of INR 956.3. But this rally might be the beginning of the uptrend and looking at its valuation, it is currently the cheapest mid-cap stock on the NSE with an unbelievable P/E ratio of 2.28.
Oil India Limited
Oil India Ltd (NS:OILI) is an oil and gas exploration and production company with a market capitalization of INR 26,551 crores. In FY23, the company hit an all-time high revenue and net profit of INR 36,821.02 crores and 8,728.59 crores, respectively. In fact, both these figures are increasing at a 5-year CAGR of 24.1% and 26.1%, respectively, which is no less than impressive.
Being a government-owned entity, the dividend yield of this stock is also decent, at 2.25% but more importantly, it is consistent as the company never skipped paying dividends in over a decade. In the last 12 months, the stock has delivered a lucrative 21.4% return, despite which it is trading at a P/E ratio of only 3.04, making it the second-cheapest counter in the mid-cap space.
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