ABB India, Ramco Cements, Lupin, and Astral were among the best midcap performances in May

ABB India

The Indian equity market has experienced a strong rally since April, with the benchmark Nifty approaching its all-time high. This growth has been driven by factors such as foreign institutional investors (FII) continuing to invest in Indian equities, resilient domestic macros, and improving corporate performance.

In May, FIIs pumped in ₹27,856.48 crore into Indian equities, showcasing their confidence in the domestic market while global peers face challenges. Although the Nifty gained 2.6% during the month, the Nifty Midcap 100 index outperformed with a surge of 6.5%. The midcap segment has been experiencing improved sentiment, and market analysts anticipate this relative outperformance to continue in the future.

Astral Ltd: Astral Ltd, a manufacturer of PVC pipes and plastic products, was the top performer in the midcap segment, with its shares jumping 25.83% during the month. The company has demonstrated robust performance across various segments, including pipe and fitting business and paints and adhesives. It recorded a 45.5% rise in Q4FY23 net profit and has a positive outlook for volume and margins in FY24-25.

The Ramco Cements: Shares of The Ramco Cements surged 22.81% in May. It is the fifth largest cement company in India and has consistently gained market share. The company registered a 35% YoY volume growth in FY23 and aims for a 20% volume growth in FY24. Resilient demand in the cement sector, driven by a normal monsoon and government infrastructure push, supports its positive outlook.

ABB India: ABB India, a heavy electrical equipment maker, saw its share price rise by 20.71% in May. The company reported strong financials, with its adjusted net profit surpassing consensus estimates. It witnessed a 22.5% YoY revenue growth and a 36.4% increase in order inflows. ABB India has a positive market sentiment and has gained 70% in the past year.

Lupin: Lupin, a pharmaceutical major, delivered a 13.39% return in May. As the third-largest generic player in the US, the company reported a consolidated net profit of ₹246.7 crore in Q4FY23, compared to a net loss in the same period of the previous year. Lupin witnessed strong growth in revenue, EBITDA, and API business. Its future price performance depends on resolving regulatory challenges, key launches in the US, and cost optimization.

Honeywell Automation: Honeywell Automation, an industrial goods company, experienced a 12.53% rise in its stock price during May. The company showcased healthy performance in the March quarter, with significant improvement in margins and net profit. It expects an uptick in execution and growth in the global market, benefiting from factors like slowing inflation, easing chip shortage, and supply-chain issues.

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