Whenever the stock market recovers it throws up some great companies which move from the Midcap to the largecap segment . Long term investors benefit from such stocks only if they had invested in them before the stock market takes a fancy  to them.

Here are some great midcap investing ideas. These companies have a great  future ahead of them and when ever the stock markets go  into a bull phase they  will lead the Midcap pack.

Tulip

Tulip Telecom provides solutions in the space of corporate data connectivity and network integration. It caters to both government and corporate sector and has a strong client base across both the segments.

Tulip has undertaken capital expenditure to strengthen its presence in the VPN (virtual private network) space. It is laying fiber optic network to provide high bandwidth last mile connectivity to its enterprise customers in 10 major cities. This along with government’s thrust on rural connectivity is expected to keep Tulip’s growth momentum going.

Sintex

Sintex Industries is a leading manufacturer of plastic products which includes pre-fabricated building materials, monolithic structures and custom moulded products. It has already acquired seven companies in a short span of 2 years and is currently looking out for more. Its pre-fabricated building materials and monolithic construction material are finding great demand in low cost housing projects and rural schools or healthcare shelters.

Read more about Sintex>>>

STF

Shriram Transport Finance is by far the most insulated companies in the banking and financial space. Growing at even higher rates is Shriram Transport Finance, which posted a CAGR of 47% in its assets under management in same period.

The company provides finance for the purchase of used commercial vehicles. This makes it insulated, as unlike new commercial vehicle segment, which is highly cyclical, the demand for this kind of financing depends upon exchange of existing commercial vehicle and not capacity expansion.

Shree Cements

Shree Cements is one of the fastest growing cement companies of India. Its net profit has jumped by over 20 times in last four years. Its plants are at one location, which helps in reducing overheads and makes it one of most efficient cement producers in the country.

The company now plans to invest Rs 1,000 crore in capacity expansion in a year’s time. The stock has almost doubled since the start of current rally but historically speaking, it is trading at very low valuations. Moreover, at current valuations, it trades at huge discount from the valuations of larger players.

Opto Circuits

Opto Circuits is engaged in manufacture and export of invasive and noninvasive medical equipment like sensors, pulse oximeters, monitoring systems and stents among others. The company is a major supplier of sensors to large original equipment manufacturers. The company has used the inorganic route, especially overseas acquisitions, to grow at a rapid pace in the past few years enabling it to expand its product portfolio as well as enter new geographies.

With its niche products, reach in foreign markets and aggressive growth, the company presents a promising growth story. Then come stocks that are more prone to the ups and downs of economy. However, ‘more’ does not imply that they are like crude oil, which came down from $147/bbl to $32/bbl in five months. It just indicates that the slowdown in economy is expected to have some bearing on their performance.

LIC Housing Finance

LIC Housing Finance are by far the most insulated companies in the banking and financial space. If there is one mortgage company to reckon with in India after the behemoth HDFC, it is LIC Housing