Even though the BSE Midcap index has fallen over 7.6 percent in the last one year (as compared to a 7 percent rise in Sensex), the index has gained over 200 percent in 10 years.

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Among the 80 stocks in the BSE Midcap index, 64 have given positive returns in the last 10 years, while only 16 stocks fell in that period. 11 of those 64 stocks have risen above 2,000 percent in 10 years.

These include Ajanta Pharma, Page Industries, Natco Pharma, Whirlpool, Gruh Finance, Balkrishna Industries, Havells India, Cholamandalam Invest, and Berger Paints.

Ajanta Pharma rose over 9,100 percent in 10 years, from Rs 9.75 in 2009 to Rs 906 per share currently. A Rs 1 lakh investment in the stock in 2009 would have turned to Rs 91.5 lakh in 2019. In the beginning of the year, the board of directors of Ajanta Pharma approved a proposal to buy back company’s shares worth Rs 100 crore. The company plans to buy back a maximum of 7,69,230 shares (representing 0.87 percent) of its total paid-up equity share capital at Rs 1,300 a share.

Page Industries rose from Rs 580 in 2009 to Rs 20,390 in 2019, up over 3,400 percent as of date. The stock gave a return of about 66 times from the IPO price of Rs 300 in 2007. The stock registered its 52-week high of Rs 36,335 on August 28, 2018.

Natco Pharma gained over 3200 percent, from Rs 15.50 in 2009 to Rs 525 in 2019. The stock hit a 52-week high of Rs 849 in September 2018.

Whirlpool, GRUH Finance, BalKrishna Industries, Havells India, and Cholamandalam Invest gained between 2,050-3,100 percent.

Going ahead, analysts expect the monetary easing and expected fiscally expansionary policies with a benign global backdrop (low rates, low oil prices) to drive a recovery over the next 12 months. According to them, individual stocks are beginning to offer reasonable risk-reward and investors must look at value stocks which are growing at a reasonable price.

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