The mid-cap segment appears to be attempting a revival, presenting investors with selective opportunities—but only those willing to accept elevated risk and adopt a slightly longer-term horizon. The underlying argument is that while tariff-related politics may cause disruption, more enduring macro-economic reforms are offering structural tailwinds for Indian mid-caps.
The article highlights seven mid-cap companies drawn from different sectors, each assessed as having upside potential of up to around 45%, assuming favourable operating conditions and execution.
Investors should note that mid-caps tend to be more volatile compared with large-caps, but also carry higher reward potential if the underlying business fundamentals and reform tailwinds align.
Key considerations when picking such stocks include evaluating business model strength, management quality, sector outlook and valuation discipline. The risk of investing in this segment can be mitigated to some extent by robust screening and focusing on companies that are placed to benefit from structural growth themes.
In short, while the mid-cap space remains more risky, it may offer attractive returns for investors with a somewhat longer investment horizon and a willingness to tolerate swings in sentiment.
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