Motilal Oswal Group Chairman Ramdev Agarwal has identified such midcap stocks and given a formula to invest in them, which can become mega cap stocks in the future and can give super returns to the investors.
Investment Tips: There are many mid cap stocks that trade in the stock market, which have the potential to become a mega cap in a short time. Such stocks can travel to mega cap stocks in just five years. Such shares are giving annual returns of up to 40 per cent. Motilal Oswal Group Chairman Ramdev Agarwal has identified such midcap stocks and given a formula to invest in them, which can become mega cap stocks in the future and can give super returns to the investors. The top 100 stocks according to market capitalization are called mega cap shares. After this 200 shares are called mid cap shares and the rest are called mini or small cap shares.
25 to 40 percent growth is necessary to be included in mega cap
Ramdev Aggarwal says that in the journey of the stocks included in the top 300 stocks to reach the top 100 stocks, investors can get tremendous profits. Every 5 years 13 to 15 companies change from mid to mega cap. Mid-cap companies also have to achieve 15 per cent growth every year if they want to maintain their ranking. It’s extremely difficult. If a mid-cap company is included in the category of mega-cap companies, then it will have to grow at a rate of more than 25 to 40 percent.
This is the way to identify companies becoming mega cap
Ramdev Aggarwal had conducted a study of 2930 companies of Motiwal Oswal Group (from 2016 to March 2021). This included 100 Mega Shares, 200 Mid Caps and 2630 Mini Shares. Out of 2630 mini companies, only 32 companies became mega caps and gave 45 per cent returns. But his strike rate was only 2 per cent. There was a lot of risk in it. During this period, out of 200 mid-cap companies, 13 became mega-cap companies. These companies gave 38 per cent returns and their strike rate was 6.5 per cent. There was less risk in it. Ramdev Aggarwal has asked to focus on mid-size companies instead of small cap companies which can give good profits with strike rate of 6 to 7 per cent.
