# 10 Midcap Stocks to Watch | Solid Q2 Numbers and Bullish Outlook | CA Rachana Ranade **Channel:** CA Rachana Phadke Ranade **Source:** https://www.youtube.com/watch?v=g08A9l3XJ4w **Transcript page:** https://www.withtranscript.ai/video/g08A9l3XJ4w ## Chapters - 0:00 — Introduction to Mid Cap Q2 Stocks - 0:42 — Sponsored AI Training by OutSkill - 1:45 — Screening Criteria for Top Mid Caps - 3:13 — Capital Markets Stocks: 361 and Anand Rathi - 6:26 — IT Stocks Analysis: Coforge and Persistent Systems - 10:42 — Additional Stocks: Exclusions and Bonuses - 13:23 — REC Stock Deep Dive Analysis - 15:21 — Conclusion and Disclaimer with Closing Remarks ## Transcript **[0:00]:** Hey folks. CA Rachana Ranade here and I welcome you all to our first video post. Diwari. Oh. My team has immediately lit up the screen and I hope you had a lot of dhamaka as well. But you know there were some mid cap stocks which created the real dhamaka in stock market by declaring amazing Q2 results. Now if you are wondering why mid cap stocks it means you have not watched this video. So do watch this video as well wherein I have told you how mid cap stock stocks are silently outperforming Nifty50 stocks. In today's video I'm going to show you a magical screen through which I have filtered out stocks from the mid cap space which have come up with mind blowing Q2 numbers. So if you want to know these stocks, keep on watching the video till the end. **[0:42]:** Before we move on, if you can dedicate just one weekend to upgrade your skills, I highly recommend this two day free AI training by OutSkill who is the partner for today's video and also world's first AI focused education platform which is backed by top AI investors and founders. It's a live 16 hour program happening this Saturday and Sunday from 10am to 7pm and though it's valued at 10,000 rupees, you'll get it absolutely free. Because you are a part of our community, you learn something like prompt engineering, no code, data analysis and a lot more. Over 1 lakh professionals from 40 plus countries including those in Tech, Sales, Marketing, HR business have already joined this workshop. I'm getting my entire team to attend this and you should too. Slots are filling fast so just click the link in the description book. Yours now. And don't forget to join the WhatsApp group for more updates. **[1:40]:** Also don't forget to join the session on 10am this Saturday. **[1:45]:** Now let's understand what magic filter I have used to filter out these top 10 mid cap stocks. When I'm saying top 10 it's purely and purely based on Q2 FY26 numbers, right? First thing I've said that the YOY quarterly sales growth has to be more than 15%. Their YOY quarterly profit growth has to be more than 20%. The net profit has to be profit. Basically it should not be a loss making company. So amazing sales growth but no profit growth. That cannot be the scenario. So it has to be more than 1. Very important point that I have mentioned here is EPS growth. Because what I have understood after listening to so many people who have given a lot of interviews this Diwali everyone was Focusing on earnings growth. So that is the reason why I have taken this as a separate parameter that EPS growth or EPS or earnings growth quarterly YOY basis again is more than 25%. **[2:37]:** But just in case, if you're like Rachna, this ratio doesn't exist in Screener as a ready made screen. So if you want to know how did I create this ratio, just just comment EPS and I'll be more than happy to make a separate short on how I created this ratio. And if you are not sure that how will you be notified when I upload this short? It's very simple. You just have to subscribe to the channel and hit the bell icon. Right? Apart from that there are two more parameters that I've used that market capitalization should be more than 15,000 crores and it should be less than 120,000 crores. That's how we will use these filters to identify top 10 mid cap stocks. **[3:13]:** Now that you know all these filters, let's get started with a theme that I discussed during my Mahura trading live stream. And the theme is capital markets. Now in this theme we are going to talk about two stocks which are focusing on wealth management. The very first one is 361. How much has been the revenue growth and the PAT growth. By the way, whatever stocks I'm going to discuss in today's video, all growth numbers are Q2 numbers on a YOY basis. Okay? Revenue has grown at 24.4% and PAT has grown at 28.5%. But if you look at the EPS growth that is only 16.8%. Now how is this case that net profit is up by 28.5% but EPS growth is only 16.8%. Now for that when I went into a little bit detail I understood that the company has integrated or has acquired basically B and K securities. **[4:02]:** Now in this acquisition, whatever was the consideration given that was a mix of cash plus actual securities or shares of 361. For this what they did was fresh shares were issued to BNK Securities. Now with this what will happen? Number of shares will increase and if number of shares increase their EPS or earning per share is going to go down because of which their EPS growth was on a lower side. Okay? But because of the integration of BNK securities, what the management has given in the sales and margin guidance is that they say that revenue is expected to continuously keep on growing, growing and that too strongly supported by the net inflows. And also they have said that margins are expected to continue or expected to improve due to reduced volatility from this business integration. All in all, if you have understood these numbers for 361 now let's move on with the next stock which is Anandrati Wealth Limited. **[4:55]:** Now for this company revenue is up 23.1% and net profit is up 30.9%. What about the guidance for the entire year financial year 26 revenue guidance that has been given is 19.9%. And for profit they have given net profit, they have given a guidance of 24.58% for the whole year. Now one more important parameter in wealth management is client retention. And if you know this, for this company, client attrition, how many clients are leaving them? Client attrition remained as low as 0.18% of AUM in first half of FY26. Obviously attrition lower the better, right? If you were to understand one more parameter, Assets under management for this company increased 22%. And the amazing part is that equity mutual fund net flows went up by 101% on a yoy basis. Always understand, equity mutual funds tend to generate more fees for such companies. So higher equity mutual fund growth is good, number one. **[5:58]:** Number two, for the overall markets, more and more equity mutual fund growth is equal to more and more money is coming into capital markets. So even if FIs are selling domestic institutional investors will be more empowered with more money and to fight these FIIs on an economic basis. So I hope you have understood about these two stocks from the capital market theme. Next two stocks are from a contrarian theme and the theme is Information technology or it. **[6:26]:** So two stocks that we are going to discuss out of that. The very first one is Coforge Ltd. I think I am talking about this stock for the very first time on our channel. But look at the numbers. Revenue up 31%. YoY profit up by 86% on a YoY basis. They have received fresh orders in this quarter worth 4317 crore rupees. Now if you look at the Q2 revenue that itself is just a shade less than 4000 crore rupees. And the fresh order number is slightly higher than 4000 crore rupees. So you can imagine such amazing fresh order inflows this company is already having. They have also given one more parameter which is executable order book next 12 months. So out of the total order books, out of the total order book, how much will they be actually able to execute? See higher the execution more will be the revenue recognition. **[7:15]:** Right? Right. This executable order book has also gone up by 26.7% on a year on year basis. One amazing point is that their attrition is low at 11.4% low as compared to the industry standard for them. Right. If I'm talking about few other deal wins because more and more deal wins they get higher order book. Higher order book is equal to higher revenue for this company. Large deal wins are increasing and in H1 that is the first half of the year they've already signed 10 large deals compared to 14 in the previous full year. So again just to re emphasize on this point, last full year they had 14 large deal wins. This year, first half only they have 10. So again a good point. And if I'm talking about geographical wise split, five large deals only in Q2. So first half is 10 large deals out of it. **[8:04]:** Five large deals are in Q2, three in North America and two in Asia Pacific. Now if I'm talking about the expectations of H2FY26 management says that they are expecting continued growth and momentum which has started from H1. And also they have very clearly mentioned that they are capturing opportunities in the healthcare segment in geographies like Asia Pacific, Middle east which are already showing good momentum or a strong momentum. Now that you have understood about a very first stock in this IT space, mid cap IT space which was coforged, let's move on to the second stock which is which is Persistent Systems Limited. Now here the revenue was up 23.6% YoY extending its run to 22 sequential quarters of growth, 22 back to back quarters of top line growth. Actually it's really staying true to its name. Persistent, right? Not a sponsored video. I'm just saying this. **[8:58]:** They'll say okay PAT is up by 45.1% on a YY basis. PAT margin also stands at 13.2% for this quarter. One more important point here is EBIT margin increased to 16.3% and that represents a 2.3 percentage growth in the EBIT margin. Now if I were to understand geographic split where their revenues grew, North America grew by 15.4% YoY Europe grew by 37.9%, India by 19%, rest of the world by 19.8%. Now why did I specifically mention about this point? Because everyone knows about American situation right now but very clearly they have mentioned that overall growth is not only coming from one part of the world, it is a nice geographical split as well. Talking about a segment now that I told you for coforge it was healthcare. Here they are saying BFSI led the growth with 30% YoY growth followed by software, high tech emerging industries at 15.5% and then healthcare and life science at 6.6%. **[10:02]:** Talking about sales and margin guidance that persistent has given, they have said that they have in fact done annual increments for their employees effective 1st of October 2025 because of which their margins can get an impact a hit by 180 basis points. But they said they'll, they'll do some other cost control measures because of which the final hit will be somewhere around 80, 80, 200 basis points. Okay, but still management says over the next few years, so they're saying till 2027 they expect that the EBIT margins may improve by 200 to 300 basis points. Now this was about the IT stocks mid cap IT stocks. **[10:42]:** But I'm sure you might be really wondering what could be the other themes and other stocks in this filter. And they are. Have a look at this. Loris Lab, Sobha, Vari Energy, Scoforge, Dixon Technologies, Polycap Persistent, Ireda, Anandrati and Oberoi Realty. Okay, now you might be like Rachna. We have really gone through this list very carefully and one name is missing which is 361. Why was this included in today's video? If you remember I've told you all the filters, all the parameters based on which I've taken out this list. Okay, but for this company, 361 all other parameters were being met by but for EPS growth. And if you remember, the reason was BNK securities integration because of which the number of shares increased and EPS growth decreased. That was the only reason why I've included that stock in today's video. Now what about other stocks? **[11:32]:** See if I actually do a detailed analysis for all other stocks as well like I did for the first four, this video will go around 30 minutes. Okay? It'll be a way long video. So instead of that I'm telling you quick reasons as to why I thought of excluding this from today's video. But if you feel out of this list I need to make a video on some specific stock, one or two. Please write down the names in the comment section below. I would be more than happy to do a separate video on one or two out of these as well. Okay, now talking about Laurus Labs, fantastic results by the way. All these stocks, fantastic results. Common statement for all. But for Laurus Labs the thing is that their export revenue is almost 70% and out of that how much is from USA that has not been clearly given. **[12:11]:** So I thought as of now, I'll wait till the tariff clarity is better, right? Second one, if I'm talking about Sobha or be it Oberoi Realty, I don't know why I personally have not tracked realty sector very closely. And that is the reason why I thought of opting out from Sobha and Obera Realty. In today's video number three, if I'm talking about Wari Energies or one more which is Ireda. I've talked about my love for renewable theme for such a long time and I continue my love for this renewable theme. I've talked about it so much so today I'm skipping this theme. Next, if I'm talking about Dixon Technologies or polycab India again I've made so many. I mean I've discussed about these stocks in my live streams, in my YouTube videos. So again just you need to know is that they have again continued giving good results. **[12:54]:** So this is the list. But what about few stocks which might have missed this by just a whisker? For example, we took the earnings growth cutoff at 25%, right? What if a company has 24 point something earnings growth? Yes, there are two stocks which do come up in this list. In that case, just as a bonus, one is HDAC MC and one is KEI Industries. Okay, so these two are at an earnings growth of 24.21% and 24.14% respectively. Otherwise all parameters are being met. **[13:23]:** So now that you know about all these 10 stocks plus two stocks as a bonus also still if you feel that and if you want me to talk about one more stock which I've talked about so many times and you all keep on asking me about that stock, we will discuss that. And the name of that stock is REC. Okay now for REC, interest income is up 8% YoY. Net interest income 9.3% YoY. PAT growth up by 10.5% YoY. One more important point is yield on loan asset that remains stable at 10.06%. Now you might be like okay, still income is increasing, pat is increasing. Why is the stock not increasing if you are like that? Main reason is that the loan book growth has not been as per the management guidance. Currently as at 30th September 2025, their loan book grew at 7% YoY. **[14:18]:** It is at 5.82 lakh crore right now. Okay, now management had given a guidance that their loan book will stand at 10 lakh crore by 2030. And if that number were to be achieved, their loan book should have ideally grown at 16% whereas their loan book is growing only at 7%. This is the biggest pain point for REC. In fact if you look at asset see there is no problem with margin, there is no problem with asset quality. In fact asset quality is so good that net credit impaired assets are at just 0.24% down from 0.88% down. Their provision coverage ratio is at 77.06% which is like best in class. So problem is not with the interest margin or with the provisioning or with the asset quality. The biggest problem is that they are not able to grow their loan book at the pace at which management had initially given the guidance. **[15:14]:** So it will be really interesting to watch what specific measures management is taking to increase their loan book. **[15:21]:** So I hope with this you were able to understand about these mid cap stars. None of these which are discussed today are recommendations, but definitely I've told about the numbers, the Q2 numbers and if you want me to make such videos for even large cap stocks and small cap stocks, do let me know in the comment section. We'll be more than happy to do that as well. I hope you found a lot of value in today's video. If you did, please don't forget to smash the like button. Please don't forget to subscribe to our channel. Do share this video with a lot of your friends. I'll see you in the next one. Till then, take care. Jai Hind and Bye bye. **[15:55]:** You might have come across such advertisements on various social media platforms. Please note all of these are fraudsters promising unbelievable returns through stock tips. I don't provide any calls or advisory services. I provide only educational content through my social media handles and through my website rachanaranade.com and rachanaranade.in.