Amfi stock classification: Multibaggers BHEL, NHPC, 5 more stocks to likely turn largecaps
Hero MotoCorp and state-run Bharat Heavy Electricals (BHEL) and NHPC could move to the largecap category from midcap in the upcoming Amfi Semi-Annual Categorisation for second half of 2024 when the official list is released in July. The other stocks which could make a cut are Zydus Lifesciences, JSW Energy, Bosch and Cummins India, said Nuvama.
BHEL, Bosch and Cummins India are borderline stocks, the note said.
Their likely promotion to the largecap category comes on the heels of a stellar rally where BHEL (256%), JSW Energy (134%), Cummins (127%) and NHPC (123%) have delivered multibagger returns in last one year while Hero MotoCorp, Zydus and Bosch have given returns between 94% and 62% in this period.
Meanwhile, an equal number of stocks are likely to be demoted from largecap category to midcap viz. Berger Paints, SBI Cards and Payment Services, SRF, ICICI Lombard, Polycab India, ICICI Prudential Life Insurance. ICICI Lombard, Polycab India and ICICI Pru Life are on the borderline and may face similar fate.
The likely climbdown in these stocks is on the relative underperformance in these stocks. Berger Paints (-4%), SBI Card (-19%) and SRF (-11%) have seen their prices erode over the last 12 months. Though Polycab India (89%) and ICICI Lombard (49%) have managed to outperform Nifty (21%) but it may not be enough for these stocks to hold on to their status if Nuvama's estimates are to come true.
Moreover, 18 stocks are expected to move to the midcap category from the current smallcap category with
