The equity market has been under pressure for some time now. Geopolitical tension has been a crucial factor behind the muted performance. Having said that, stretched valuations is one of the other key reasons affecting the market in India, especially in the mid and smallcap segments.
If we look at the midcap segment, during the past year, the Nifty Midcap 150 index grew only by 1.05%.
Having said that, there are a few stocks that defied this negative sentiment around broader markets and offered solid returns as high as 100% and above.
So, in this article, we will be exploring four such midcap stocks and try to figure out what these companies did differently.
#1 Laurus Labs Limited: Leading HiPotent API Manufacturer
Laurus Labs Ltd., a pharmaceutical and biotechnology company mainly engaged in manufacturing high-potency APIs, oncology drugs, anti-retrovirals, cardiovascular, and other therapeutics.
The company is one of the largest pharma businesses in the country when it comes to manufacturing high potent (HiPotent) APIs and also a leading global supplier for antiretroviral APIs.
Apart from APIs, the company also offers other generics such as oral solid formulations, Proton-Pump Inhibitors (PPIs), and other drugs and pharma products.
However, that’s not all for Laurus Labs, as there’s a lot more to it.
Laurus Synthesis, a custom synthesis division of the business, acts as a Contract Development and Manufacturing Organisation (CDMO) offering drug development and manufacturing services to multiple pharma companies across the globe, for crop science, animal health, biotech firms, and for specialty ingredients manufacturers as well.
Laurus Bio, the biotechnology arm of the company (subsidiary), offers services such as strain engineering and clone engineering to the clients.
This midcap pharma company has delivered a return of 110% over one year, defying all the odds in this volatile market.
Quality Growth Over Years
One of the reasons behind this could be Laurus Labs’ quality growth over the past years. The company is amongst the very few Indian companies that have delivered a 25% CAGR in revenues and above 30% CAGR in profits over the last 15 years.
Furthermore, Laurus Labs is one of the biggest wealth creators in the pharma and healthcare space in the country.
Aggressive Expansion Plans
Another reason could be Laurus Labs’ aggressive expansion plans. Currently, the company has an API manufacturing capacity of around 8,200 Kilolitre (KL), with two other sites in Vizag under construction.
The company has already committed ₹3,000 crore of capex for the ongoing projects, with a further capex commitment of around $600 million (~ ₹5,700 crore). Between FY25 and FY26, capex of the company grew 62% as well.
148% Profit Growth
Total revenue grew by 23% YoY to ₹6,813 crore in FY26 from ₹5,554 crore in FY25. Out of the total, revenue from the CDMO segment grew 36% YoY, while revenue from the generics segment grew 18% YoY.
Net profit for FY26 jumped by a whopping 148% YoY from ₹358 crore in FY25 to ₹889 crore.
The return on capital employed (ROCE) of the company stood at 17.7%, higher than the industry median of 15.2%.
Dividend yield of the company stood at 0.14%, while the industry median is 0.09%.
Already trading at a premium?
The stock is trading at a price-earnings (PE) of 85.8x, which is way higher than the industry median of 31.7x. Even the price earnings to growth (PEG) ratio is 21.5x, higher than the industry median of 0.9x, indicating the stock is relatively expensive.
1-Year Share Price Chart of Laurus Labs Ltd.
#2 GE Vernova T&D India Limited: Lightning India’s Nooks and Corners
GE Vernova T&D India Ltd. has been engaged in the power transmission and distribution business for more than a century now.
The company manufactures different products that are required in power transmission, such as transformers, circuit breakers, switchgears, and others.
GE Vernova delivered a return of 106% over one year, not only defying Nifty Midcap 150’s return for that period but also defying returns of its own peers, as the industry median is just 3.8%.
Growing Market Opportunities
The price of GE Vernova might have been rallying upward due to the significant opportunities present in the power transmission market.
As the global energy demand is projected to grow by 1.4 times by 2030, power transmission and grid developments become extremely crucial.
Another factor that is driving growth is rising grid complexity, which calls for the grid automation solutions that GE Vernova offers.
Orderbook Outlook
The growth prospects of the company are reflected in its growing orderbook as it stood at ₹14,800 crore at the end of FY26. Order intake for FY26 also rose by a significant 37% YoY during the fiscal year.
A ₹10 Billion Capex Commitment
GE Vernova is investing in robust expansion plans. The company has already planned a capex of around ₹1,000 crore up to December 2028, in a phased manner.
This capex is projected to increase the transformer and reactor manufacturing capacity by around 50% in the Vadodara facility.
The company is expecting a 25% increase in Air Insulated Switchgears (AIS) capacity and new lines for bushings and Automatic Circuit Recloser (ACR) at its Hosur facility. Another 25% increase in AIS and gas-insulated switchgears (GIS) manufacturing capacity at the Padappai facility.
Another new plant is also under construction for AIS disconnectors, GIS components, and other assemblies at Vallam.
Profits Jumped Over 100% During FY26
Sales for FY26 stood at ₹6,206 crore, up by 44.6% YoY from ₹4,292 crore of sales during FY25. Net profit went up from ₹608 crore in FY25 to ₹1,233 crore, logging a 102.8% YoY growth.
Currently, the ROCE of the company is at 76.4%, way above the industry median of 23.7%.
The dividend yield of the company is at 0.11%, while the industry median is just 0.02%.
But is the stock expensive?
The stock is trading at a PE of 98.6x, which is way higher than the industry median of 35x, indicating the stock might be relatively more expensive than its peers. However, the PEG ratio is just 0.2x, lower than the industry median of 0.6x, indicating that if adjusted for growth, the stock might be relatively undervalued.
1-Year Share Price Chart GE Vernova
#3 Vodafone Idea Limited: Is Turnaround at the Corner?
Vodafone Idea Ltd., a telecom operator, saw its share price rally over 104% in the past year.
Expanding Revenue Base
The average revenue per user (ARPU) of the company has also been expanding consistently, which might be another sign of the turnaround.
During Q4FY26, ARPU stood at ₹190 compared to ₹175 in the corresponding quarter in FY25, rising 8.3% YoY.
However, this is not the first quarter when ARPU expanded; rather, it is the 19th consecutive quarter of growth in ARPU.
A ₹45,000 crore Capex Plan
Vodafone Idea has come up with a bold capex plan for the next three years. The company has committed to invest around ₹45,000 crore in the next three years for tower expansions, 5G coverage, etc.
In the previous six quarters, the company has already invested around ₹16,000 crore in adding over 30,000 unique broadband towers and around 1,26,000 broadband layers.
On the other hand,4G capacity has been expanded by over 27% during FY26, which improved 4G population coverage to more than 86% of pan India.
From Losses to Profits
During FY26, sales of the company increased to ₹44,873 crore from ₹43,571 crore in FY25, rising by 2.9% YoY.
Even though the sales increased nominally, the company turned profitable after almost a decade. During FY25, the company incurred losses of around ₹27,383 crore, while during FY26, Vodafone Idea generated a profit of ₹34,552 crore, driven substantially by a one-time exceptional accounting adjustment.
Having said that, the ROCE of the company is currently negative 1.6%, compared to the industry median of 16.6%.
Is Vodafone Idea trading cheap?
The stock has an enterprise value to sales (EV/Sales) ratio of 7.6x, while the industry median is 8.5x, indicating the stock might be relatively cheaper than its peers.
1-Year Share Price Chart of Vodafone Idea Ltd.
#4 National Aluminium Company Limited (NALCO): Leading Global Bauxite and Alumina Producer
NALCO Ltd., a Navaratna CPSE, is one of the largest integrated Bauxite-Alumina-Aluminium-Power-Coal Complex in India. The company produces around 7.5 million tonnes per annum (MTPA) of Bauxite, 2.1 MTPA of Alumina hydrate, special hydrates, calcined Alumina, 4 MTPA of coal, and other energy products and minerals.
In the past year, the company’s share price has grown by 102%, again defying the overall midcap segment’s performance and even in contrast to its own peers, as the industry median stood at 17.1%.
A Year of Highest Production & Sales
During FY26, NALCO’s production reached its all-time high. Bauxite production increased to 7.7 MTPA, rising from 7.26 MTPA in FY25. Alumina hydrate production grew from 2.1 MTPA to 2.3 MTPA during the period.
Net power generation of the company surged from 6,641-meter unit (MU) to 6,953 MU.
Coming to sales quantity, NALCO sold alumina hydrate around 1.5 MTPA during the fiscal year, up from 1.1 MTPA in FY25.
Aluminium export rose from 0.06 lakh tonnes to 0.13 lakh tonnes during FY26.
Major Expansion Projects Underway
NALCO is expanding its Bauxite mining capacity by around 3.5 MTPA during FY27. It has explored Pottangi Bauxite Mines with an overall reserve of around 111 million tonnes.
The company is building its 5th Stream Alumina Refinery, which is expected to increase the Alumina production capacity by another 1 MTPA. This project is anticipated to be commissioned in June 2026.
NALCO is also expanding its power generation business with another captive power plant with an expected capacity of around 1,080 megawatts. This is expected to be commissioned during June 2031.
Steady Business Growth
Sales grew from ₹16,788 crore in FY25 to ₹17,843 crore in FY26, logging a 6.29% YoY growth.
Net profit for the period also grew by 10% from ₹5,268 crore to Rs.5,797 crore.
Coming to the returns, NALCO has an impressive ROCE of almost 40%, while the industry median is just 13.7%.
As Navaratna CPSE, NALCO also pays regular dividends, and its current dividend yield is 2.74%, significantly higher than the industry median of 0.13%.
Is the stock undervalued?
The stock is trading at a PE of 12.2x, lower than the industry median of 16.3x. The PEG ratio stands at 0.2x, which is also lower than the industry median of 0.5x, indicating that the stock might be relatively undervalued if adjusted for growth.
1-Year Share Price Chart of NALCO Ltd.
Final thoughts
Even amidst a muted broader market, these select midcap stocks have delivered returns of over 100% during the past year. Having said that, since the market is highly volatile, whether these stocks would continue to generate off-the-chart returns only time could tell. So, for now, you can add these stocks to your watchlist and track their performance.
We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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