Introduction
The IT industry in India is booming. The export earnings of the IT industry were $199 billion for FY24. Infosys, TCS, and Wipro have made India the leading IT exporter country and this has given the IT big shots the status of world-class IT companies.
However, according to Nasscom, incremental revenues have fallen from $19 billion in FY23 to $9.3 billion in FY24. Technology deals are down globally, cutting IT spending by 6 percent in 2023. Now they are focused on higher growth segments of the cloud, AI, big data and analytics, engineering services, etc. Now, we can talk about the best midcap IT stocks that can benefit from such opportunities as India plans to become a $5 trillion economy by 2026.
Also Read: Top Renewable Energy Stocks to Invest in India for 2024
Midcap IT stocks in India 2024
Midcap IT companies are better placed to leverage new technologies such as cloud computing, AI, and digital transformation, making the investment option risky but with high returns.
These stocks are expected to perform better in 2024 because the demand for technology solutions is high globally. Identifying the best midcap IT stocks is a real value-addition for your investment portfolio.
NOTE: The stocks mentioned below are listed and arranged on the basis of market capitalization. The financial fundamentals are as of 14 November 2024. The table below shows financial performance for the half-year period ending on September 30, 2024.
| Company Name | Market Cap | Revenue | PAT | 52 Week High | 52 Week Low |
| Affle (India) | ₹ 22,068 Cr. | ₹176.10 crores | ₹27.273 crores | 1,715 | ₹ 998 |
| Firstsource Solutions | ₹4,179 Cr. | ₹1,932.61 cr | ₹138.21 | ₹ 391 | ₹ 160 |
| Tejas Networks | ₹ 21,559 Cr. | ₹2,810.14 cr | ₹266.18 crore | ₹ 1,495 | ₹ 651 |
| Zensar Technologies | ₹ 15,925 Cr. | ₹556.20 crore | ₹116.20 crore | ₹840 | ₹489 |
| Birlasoft | ₹ 15,364 Cr. | ₹1368.2 crores | ₹127.51 | ₹ 862 | ₹ 536 |
| Intellect Design Arena | ₹ 9,918 Cr. | ₹334.16 Cr. | ₹2.44 Cr. | ₹ 1,199 | ₹671 |
- Affle (India)
Affle (India) Limited is a technology company that deals with mobile advertising. It assists companies in targeting consumers through ads on mobile devices and offers tools for improved consumer relations. Affle’s platforms assist brands in establishing and understanding their target market via advertising and digital solutions.
It benefits both web-based and traditional businesses through the provision of efficient methods of reaching mobile users and stimulating their engagement and buying.
- Firstsource Solutions
Firstsource Solutions specializes in business process outsourcing and customer relationship services. Some of its service providers are the banking, healthcare, and media sectors.
Technology enables Firstsource Solutions to provide better customer services and better organizational outcomes.
- Tejas Networks
Tejas Networks is a company that deals with the design and production of technologies. These technologies are used in the communication networks to support internet and phone networks. Its products help to enhance voice, video, and data connections.
Tejas has a wide range of customer bases, including government and defense departments. Therefore, the products and services delivered by Tejas are reliable.
- Zensar Technologies
Zensar Technologies has several IT solutions that help organizations to manage their operations with little risk. It is mainly concerned with software development and improvement, cloud services management, and improvement of security measures.
Zensar serves various sectors from retail to insurance industries. The company also helps them in managing their online presence.
- Birlasoft
Birlasoft Limited is an IT solution provider company that provides business solutions. It provides business solutions like analysis, computing, and robotics to improve operations. Birlasoft specializes in offering services related to customer relations, supply chain, and product life cycle. The company deals with various industries from automobile to banking. Birlasoft helps them embrace new technologies for better performance and development.
Also Read: How to Expand Your Portfolio with International Investments
- Intellect Design Arena
Intellect Design Arena is an IT solution and service company. It operates in the banking and financial services domain. It provides services related to Artificial Intelligence to enhance the banking process and experience.
Intellect offers products that are relevant to a wide range of banking processes and enable banking companies to provide seamless and efficient customer experiences.
Interesting Read: Equity vs Preference Shares: What You Need to Know
Conclusion
This blog provides an idea about the dynamic IT sector of India and provides a list of midcap stocks that may gain from such trends as AI, cloud, and digital.
However, these stocks can have high risks that investors should consider.
FAQs
- Which stocks are going to rise in 2024?
In 2024, the stocks of companies offering renewable energy, AI, and infrastructure solutions are forecast to rise. This happens because of technology development and sustainable development activities. Affle and Firstsource are among these stocks who offer digitisation and automation that are important to the technological advancement of the global economy.
Additionally, segments like the consumer discretionary and financial services categories will experience growth because of the growing need for new products and deeper finance.
- Which is the best mid-cap technology stock in India?
According to your risk appetite, we can determine the best mid cap technology stocks in India. But, if we take an overall view, one of the strong players in technology and works in the defense and government sector is Tejas Networks. This company is an interesting contender among the top midcap IT stocks. Affle (India) is another strong contender in this space with their innovative mobile advertising solutions. We have both companies in our strong picks in India’s dynamic IT landscape, and they are well placed to leverage growth in AI, cloud computing and digital transformation.
- Which is the richest IT company in India?
India’s economy is still driven by the IT market in 2024. While TATA Consultancy Services is the richest and a giant in the industry, midcap IT companies are creating a niche in high growth areas like AI, cloud computing and digital transformation. Midcap IT is an exciting space, even as global IT spending is being cut, because companies like Tejas Networks and Affle (India) are using these technologies to drive innovation and grow their market reach.
- Which IT sector is booming?
The IT sector continues to experience robust growth, particularly in areas like cloud computing, artificial intelligence (AI), cybersecurity, and data analytics. As businesses increasingly rely on digital transformation, cloud services have become essential, driving the demand for scalable storage solutions and computing power.
Additionally, cybersecurity remains a high priority as cyber threats grow more sophisticated. With rising concerns about data privacy and security, companies are investing heavily in advanced cybersecurity solutions, fueling job growth in this area.
- Is it good to invest in mid-cap?
If you’re looking to get both the lower risk and the higher profit rate, then having mid-cap stocks in your portfolio is quite beneficial. Small-cap stocks tend to be more volatile than mid-cap stocks and have less growth potential than large-cap stocks. The ones usually are at the expansion stage and are ideal for long-term investment. They should therefore research the company and the industry it operates in before investing.
