Q1 results: Mid-cap stocks see upward revision in 12-month price targets

The consensus 12-month price targets for several mid-cap companies have increased following better-than-expected first quarter earnings. Nearly 174 stocks on the BSE 500 index have seen an upgrade in their target price during the last three month. Around 65 stocks have seen an increase of more than 10 per cent. This upgrade in the mid-cap stocks comes as a relief since the segment has witnessed an intense selling pressure between February and June this year.

Market participants say the upgrades are mainly in those stocks which have surprised the Street with their June quarter earnings. Earnings surprise has also helped broader markets catch-up with the rally in the benchmark indices. The BSE Midcap index, which was down 13.5 per cent in the first six months of 2018, has recovered nearly 4.5 per cent since then.

Consumption stocks lead the charts in terms of stocks that have seen steepest target price upgrades. Companies such as V-Mart Retail, Jubilant Foodworks and Nestle India have all seen upgrades to a tune of 20 per cent or more. On the other hand, state-owned banks have seen the steepest fall in their target prices, with PNB, Andhra Bank, Oriental Bank of Commerce leading the declines.