These 3 mid caps have multiplied profits up to 10x in 5 yrs

Summary: These mid caps have grown their earnings at a staggering pace over the last five years and they score a perfect 5/5 on our Stock Ratings—all while staying reasonably valued. Find these outliers and their growth numbers below. 

If you think only small companies can deliver explosive earnings growth, think again. A handful of quality mid-cap stocks have multiplied their profits multifold in just five years, compounding earnings by as much as 150 per cent annually. What’s even more remarkable is that their valuations haven’t raced ahead yet.

How we filtered these profit accelerators

We ran a three-step screen to spot these elite performers: mid caps that combine blistering profit growth with sensible pricing. We filtered: 

1) Profit growth: Mid caps with annualised earnings per share (EPS) growth of over 50 per cent over the last five years.

2) Valuation discipline: Those trading below their five-year median P/E, ensuring growth hasn’t run ahead of reality.

3) Quality check: From this filtered list, only stocks rated five out of five on our Value Research Stock Ratings, which capture quality, growth, valuation and momentum, were picked.

The result was three mid-cap stocks (after excluding BFSI) whose earnings growth far exceeded even our ambitious 50 per cent filter. These are the mid caps every long-term investor should be watching.

Indegene

Indegene provides tech-based healthcare solutions, helping life sciences companies bring products to market faster. It provides digital, medical, commercial and regulatory services, plus omnichannel marketing solutions, technology platforms and analytics, supporting biopharmaceutical, biotech and medical device companies across India, the US, Europe and other global markets.

NALCO

National Aluminium Company (NALCO) turns raw bauxite into high-value aluminium and alumina products sold worldwide. With its own mines, smelters, refineries and captive wind and solar power, the company combines industrial scale with sustainable energy, while streamlined storage and shipping make global delivery seamless.

BLS International Services

BLS International Services is a preferred partner for many governments globally for visa, passport and consular processes. At 20 per cent market share, it's the second-largest visa service provider globally. From e-visas and biometric identity services to verifications and value-added government solutions, it operates across Asia, Africa, Europe, the Americas and the Middle East, streamlining travel and citizen services on a global scale.

These were the top three picks based on our Stock Ratings. Check our screen to find the remaining 19 names that pass the first two filters of profit growth and valuation.

Want to go beyond screens and find tomorrow’s market leaders?

Quantitative filters like the ones above come in handy in narrowing down the vast investable universe. But the mid caps, picked here using our screen, are just the tip of the iceberg. With Value Research Stock Advisor, you can go a step further and access a curated list of high-quality, growth-oriented and qualitatively researched stock recommendations that can build lasting wealth for you.

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Also read: As mid caps reclaim highs, these 10 stocks are still cheap