What Is Mid To Mega: Mid And Small Caps Are The Large Caps Of The Future
- Based on Mr. Raamdeo Agrawal's 20th Annual Wealth Creation Study, Mid to Mega stands for a company's stock crossing over from the Mid to the Mega category (i.e. top 100).
- This marks a significant crossover for any company, both in terms of achieving critical mass and scale in its operations, and recognition of the same by the stock markets.
3 Types of profitable crossovers for wealth creation:
- Mini to Mega (Very Low Probability)
- Mini to Mid (Low Probability)
- Mid to Mega (Low to Medium Probability)
The most profitable-cum-plausible crossover
- Industry leader (growth, size or market share leader)
- Industry Tailwinds (Bedrock of India's corporate sector)
- Value migration beneficiaries (Difficult to dislodge)
Probability that a mid will become mega in 5 years is as high as ~14% compared to less than 1% probability of a mini to mega/mid transition
Source: Mid to Mega Wealth Creation study.
The above data is used to explain the concept and is for illustration purpose only further it shall not in any way to be construed as investment advice. The data mentioned herein are for general and comparison purpose only and not a complete disclosure of every material fact, and should not used for development or implementation of an investment strategy.
The Journey So Far: Tailwinds
• Mid and Small Cap Rally
- Mid and small-cap companies, which are often more sensitive to domestic economic conditions, have performed well over CY23. From Sep 2022, the fund has started outperforming the benchmark.
- This was on the backdrop of mid and small-cap stocks, which benefited from the positive market sentiment and risk appetite among investors.
• Sectoral Rotation
- The fund manager actively changed allocation of the portfolio towards sectors based on the house themes.
- The companies in such sectors as consumer discretionary, financials, and healthcare, witnessed investor interest as market participants sought exposure to sectors expected to benefit from improving economic conditions.
• Low Turnover
- Since its inception, the fund manager has maintained a lower churn ratio in the portfolio which implies higher conviction in the investee companies.
- 8 out of the top 10 multi-baggers still form a part of the portfolio.
- This investment process in managing the portfolio helps to compound the growth in the portfolio.
Source: MOAMC Internal Research Data as on April, 2024
Disclaimer: above is an investment strategy theme of the manager and it should not be used for development or implementation of any investment strategy. Further it should not be construed as investment advice to any party.
Performance Update - PMS
- Mid to Mega Strategy
- S&P BSE 500 TRI
- BSE 500 TRI Index
- Mid to Mega Strategy
Mid to Mega Strategy Inception Date: 24th Dec 2019; Data as on 31-May-25.
Data Source: MOAMC Internal Research; Source: Capitalline and Internal Analysis.
Returns up to 1 year are absolute & over 1 year are Compounded Annualized. TWRR at strategy level. Not verified by SEBI.
Portfolio update – PMS
Mid to Mega Strategy
Urbanization 24.3
- Kalyan Jewellers 6.2
- Puravankara 1.0
- Trent 7.0
- Aditya Birla Real Estate 2.2
- TVS Motor 7.4
Financialization 14.0
- Angel One 3.4
- AU Small Finance 4.4
- BSE 4.1
- Piramal Enterprises 2.1
Make in India - Capital Goods & Engineering 13.1
- Hitachi Energy 3.1
- Polycab India 6.4
- Apar Industries 3.6
Make in India - Renewable Energy 10.1
- Suzlon Energy 6.9
- Waaree Energies 3.2
MC-Bands MTM PMS
- >= 1Lakh Cr 15%
- >= 50K Crs 40%
- >= 25K Crs 5%
- >= 10K Crs 23%
- >= 5K Crs 6%
- < 5K Crs 2%
- Unlisted
- Long Only Equity Total 91.9%
Market Cap Breakup %
- Large Cap 21.7%
- Mid Cap 36.5%
- Small Cap 33.5%
- Others 0.0%
- Long Only Equity Total 91.9%
Make in India – Electronic Goods Manufacturing 8.5
- PG Electroplast 6.1
- Amber Enterprises 2.4
- Tech & Tech Services 7.5
- eMudhra 2.3
- Zaggle Prepaid 2.3
- Persistent Systems 3.0
- Healthcare Ecosystem 5.3
- Global Health 5.3
- Telecom 3.7
- Bharti Airtel PP
Make in India - Infrastructure Ancillaries 3.1
- Power Mech Projects 3.1
Make in India - Defense 2.5
- Garden Reach Shipbuilders 2.5
For the full strategy presentation, please contact us.