This few well -known score identifies 3 mid -cap supplies for growth
Copyright © HT Digital Streams Limit all rights reserved. EquityMaster 4 min Read 15 Oct 2025, 02:06 PM IST created by Professor Joseph Piotoski, the Piotroski score provides a simple but effective way to determine the financial health of a business. (AI-generated image for representative purposes) Summary discovers three mid-cap stocks with strong financial health, backed by a little known metric indicating the growth potential. If you move from the market-from large caps to small Caps and micro-caps rise both risks and potential returns of course. But what if you want a middle road: Growing without excessive risk? Middle Cap shares often strike the balance and provide a mixture of stability and upside potential. The challenge is to find the right mid -cap in a crowded market. One tool that can help investors separate the wheat from the chaff is the Piotoski score. What is the Piotroski count? This score, created by Professor Joseph Piotoski, provides a simple but effective way to determine the financial health of a business. It evaluates nine factors to see if a business improves or faces: Profitability: Does the business earn strong returns? Cash Flow: Does it generate sufficient operational cash? Debt management: Is long -term debt reduced? Liquidity: Does assets grow in the short term relative to liabilities? Issuing shares: Did the company avoid diluting shareholders? Operating efficiency: Improve margins and asset use? Keeping that in mind, here are three mid-cap with high piotroski counts that earn a place on your waiting list. National Aluminum Co. National Aluminum Co. (Nalco), a schedule A Navratna CPSE under the ministry of mines with a 51.28%stake, work on mining, metals and power, which manages India’s largest integrated Bauxite alumina aluminum power complex. The company achieved a piotroski score of 9, reflecting the strong financial health. Over the past five years, Nalco has produced impressive growth. The turnover almost doubled from £ 89,558m in FY21 to £ 167.876m in FY25, representing a 14.75%CAgr. The net profit grew even faster, rising from £ 12.994m to £ 52,679m, a 107.7%CAgr. The company maintained a debt -free balance sheet while achieving an average roe of five years of 18% and ROCE of 23.5%. Looking ahead, Nalco plans a capital expenditure of £ 300bn over the next four to five years to expand mining, refinement, melt and power ability. This includes doubling the melting production, increasing alumina refinement, the examination of lithium in Argentina by Kabil and diversification to value-adding products. Sustainability initiatives and strategic partnerships aim to increase production efficiency and global competitiveness. KPIT Technologies KPIT Technologies, an India-based software development and integration business, focuses on the automotive and mobility sector, which provides solutions to autonomous driving, ADAs, conventional and electrical power and cabin systems. The company also achieved a piotroski score of 9, which emphasizes strong financial health and operational efficiency. Financially, KPIT was on a strong growth course. Revenue rose from £ 20,357m in FY21 to £ 58,423m in FY25, a 22.1%CAGR, while the net profit rose from £ 1,471m to £ 8,396m, which was a 41.6%CAgr. Over the same period, the company achieved an average roe of five years of 23.1% and ROCE of 31.8%, while maintaining a debt -free balance sheet. The company has also strengthened its global presence through acquisitions, including Oxi SRL Italy for US $ 6 million and earlier Caresoft subsidiaries in the US, UK and Mexico for US $ 51 million. With a consistent profitability, a strong balance sheet and high financial health, KPIT is a Midcap share to look into India’s fast-growing car-technical sector. Multi Commodity Exchange of India Multi Commodity Exchange of India (MCX) is the largest exchange of commodity derivatives in India and is sixth with contract volume worldwide. It provides an online trading platform regulated by SEBI, which covers bullying, industrial metals, energy and agricultural commodities. The company also has a piotroski score of 9, which reflects strong operations and financial health. MCX has seen strong financial performance over the past five years. Revenue climbed from £ 3,906m in FY21 to £ 11,127m in FY25, a 22.8%CAGR, while the net profit rose from £ 2,252m to £ 5,600m, representing a 18.8%CAgr. The company has a debt -free balance sheet and achieved an average roe of five years of 10.1% and ROCE of 12.5%. Regulatory reforms can provide further upside down. Media reports indicate that SEBI can enable banks, pension funds and FPIs to participate in commodity trading, increase liquidity and attract foreign investment. As India’s leading commodity exchange, MCX is well positioned to take advantage of rising trading volumes and new product opportunities. AWL Agri Business, IPCA Labs, and Ge Vernova T&D, also other Midcap shares, and Ge Vernova T&D also contain under Midcap businesses with a piotoski score of 9. Closing midcap shares often reach the right balance between growth and stability. Companies with a high piotroski score are out of the lookout for their strong financial health, operational efficiency and clean balance sheets. However, investors should also consider the valuation, the prospects of the industry and the visibility of earnings. The careful assessment of the fundamentals, corporate governance and valuation of shares remains essential before making an investment decision. Happy investment. Disclaimer: This article is for information purposes only. It is not a recommendation for stock and should not be treated as such. This article is syndicated from equitymaster.com, captures all business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Markets Premium #midcaps #stock Markets Read Next Story