According to Edelweiss Alternative Research, which has made possible changes in the AMFI marketcap classification, multibagger stocks like Indian Energy Exchange (IEX), National Aluminum Company (Nalco), Happiest Minds Technologies and Gujarat Fluorochemicals are among the stocks that can outperform smallcaps. Huh. in midcap category AMFI Review,
Prestige Estates Projects, KIOCL, and Central Bank of India may also be upgraded to the official list per brokerage and research firm Edelweiss’s preliminary prediction, which will be released by AMFI in January 2022. The updated list, which will be announced by AMFI, will be valid from the beginning of February till the end of July 2022.
Shares of NALCO having integrated and diversified operations in Mining, Metals and Power has given multibagger returns The stock is up over 125% in year-over-year terms so far this year.
Multibagger stock IEX, the leading electricity exchange in India, has gained over 270% during the said period. Shares of chemical maker Gujarat Fluoro and IT company Happiest Minds have skyrocketed over 260% and 280% respectively in 2021 (YTD).
As per market regulator Securities and Exchange Board of India (SEBI), listed stocks should be classified strictly into baskets with well-defined classification of largecap, midcap and smallcap stocks. This is to ensure uniformity with respect to the investment universe for equity mutual fund schemes.
Further, SEBI has also stipulated that AMFI shall list the shares in this regard. Accordingly, AMFI in consultation with SEBI and stock exchanges prepares the list of shares with classification on the basis of market capitalization as provided by BSE, NSE and MSEI.
Meanwhile, according to Edelweiss, midcap stocks like RBL Bank, Eiffel (India), Amara Raja Batteries, Indigo Paints, Vaibhav Global, Apollo Tyres, Suven Pharma, Zydus Wellness, Castrol India are likely to be downgraded to smallcap category. ,
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