Stocks to Buy: Indian Hotels, Godrej Properties, Sobha among 9 mid cap picks by Motilal Oswal Financial Services.

Stocks to Buy: Indian Hotels Company, Godrej Properties, Global Health, PNB Housing, Kirloskar Oil Engines, Cello World, Sobha, Lemon Tree Hotel, and JK Cement are among the top 9 midcap picks by Motilal Oswal Financial Services .

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FY24 witnessed a broad-based growth, with gains seen in all sectors and indices. As the gains remained broadly in the positive zone the same is likely to have been led by significant  gains by Nifty Midcap 100 (up 60% YoY) and the Nifty Smallcap 100 ( up 70% YoY) outperforming the Nifty-50 gains by margins of 31% and 41%, respectively, suggested Motilal Oswal Data. The Compound annual growth for the Nifty-50, Nifty Midcap 100, and Nifty Smallcap 100 stands at 14%, 21%, and 18% over a five-year period.

The surge in the broader markets was fueled by the rebound of the underperforming sectors over a past decade, including Real Estate, Capital Goods, Public Sector Undertaking , Industrials, Defense, etc., even if these sectors did not make up a significant portion of the large-cap indices. The small- and mid-cap indices reached all-time highs as a result. Real estate indices with 133% gains, Public Sector Banks ( up89%), Capital Goods ( up 77%), Auto ( up 75%), Energy ( up 71%), Healthcare ( up 58%), Metals ( up 50%), Technology ( up 22%), FMCG (up 18%), and Private Bank (up 14%) were the top sectoral gainers in FY24.

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In 9MFY24, the Nifty-50 registered a profits rise of 26%. High-frequency data (auto monthly statistics, GST collections, power consumption, PMI data, etc.) suggests that the momentum in earnings will continue in the future. Automobiles, Real Estate, Capital Goods, Infrastructure, Industrials, Utilities, Hotels, and PSUs are among the sectors that have performed poorly in terms of earnings during the previous several years, but they have all recovered well in FY24. Increasing government spending and expanding order books are driving growth in industries including capital goods, utilities, defense, and railroads.

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