Akash is a CA and stock market expert. He invested our money in mid-cap stocks due to their growth potential and solid technical data. A good investor knows that risk is an essential part of the stock market, but by assessing risk based on your investment, you can earn a substantial return.

How can Akash grow our investment in MadCap?

Akash says: "Mid-cap companies typically have a market capitalisation ranging from ₹8,000 crore to ₹26,000 crore. I invested in one mid-cap stock that helped me grow my money with minimal risk, and that stock is:"

Infollion Research Services Ltd

I invested ₹1,00,000 in Infollion Research Services Ltd in January 2023. At that time, the stock price was ₹209.99. After 2 years, in January 2025, the price of the stock is ₹412.95

• Initial Investment:
  • I invested ₹100,000 in January 2023.
  • Stock price in January 2023 = ₹209.99 per share.
     
• Number of Shares You Bought:
  • Shares = Total Investment / Price per Share
  • 100,000 ÷ 209.99 = 476 shares (rounded down).
     
• Stock Price in Jan 2025:
  • New price = ₹412.95 per share.
     
• Current Value of Investment:
  • Current Value = Shares × New Price
  • 476 × 412.95 = ₹196,564.20
     
• Profit Made:
  • Profit = Current Value - Initial Investment
  • 196,564.20 - 100,000 = ₹96,564.20
     
• Return on Investment (ROI):
  • ROI = (Profit / Initial Investment) × 100
  • (96,564.20 ÷ 100,000) × 100 = 96.56%

Final Answer:

• My ₹100,000 became ₹196,564 (almost double) in 2 years.
• You earned a profit of ₹96,564 (96.56% return).

This is how investment in Mid-Cap shares can double your money step by step in the long term. Investment is always good when you calculate your risk.

What are Mid-Cap Stocks, and why invest in Mid-Cap Stocks?

Mid-cap stocks are shares of medium-sized companies, larger than small startups but smaller than giants like TCS or Reliance. Their market value typically ranges from ₹8,000 crore to ₹26,000 crore.

What are Mid-Cap Stocks?

• Market Cap Range: Market cap range: Mid-cap companies typically have a market value ranging from ₹8,000 crore to ₹26,000 crore.
• Growth Phase: These companies are expanding fast, opening new branches, launching new products, and increasing profits.
• Balance of Risk & Reward:
  • Less risky than small-caps (which can crash easily).
  • Higher growth potential than large caps (which grow slowly).
• Less Known: Big investors sometimes ignore them, so prices may stay low, giving smart investors a chance to buy early.

Why Invest in Mid-Cap Stocks?

1. Faster Growth: They grow quicker than big companies.
2. Less Risk Than Small Stocks: More stable than small-caps.
3. Hidden Gems: Many turn into large-cap stocks in 5-10 years.

Akash’s Story: How Mid-Caps Made Him Money in 3 Years

Akash is a CA who invests in stocks. In 2021, he put ₹1 lakh in 3 mid-cap stocks
 

What Happened?

• He invested ₹33,000 in each stock.
• After 3 years:
  • Tata Elxsi - ₹88,000
  • Persistent - ₹1,12,000
  • KPIT Tech - ₹82,500
• Total = ₹2,82,500 (Almost 3x Money!)

Reasons To Invest in Mid-Cap Stocks
 

1. Faster Growth Than Big Companies
   • Mid-caps grow quicker than giants like Reliance or TCS because they are still expanding.
   • Example: A ₹10,000 investment in a good mid-cap can become ₹25,000-₹30,000 in 3-5 years.
      
2. Less Risky Than Small Stocks
   • Small stocks can crash fast, but mid-caps are more stable because they are established businesses.
   • Example: Small stocks may drop 50% in a bad market, but mid-caps usually drop only 20-30%.
      
3. Hidden Future Giants
   • Many big companies today (like Tata Elxsi, and Persistent) were once mid-caps.
   • If you find them early, you can make 5x-10x money in 7-10 years.
      
4. Cheaper Than Large-Caps
   • Big stocks like HDFC Bank are expensive (₹1,500+ per share).
   • Mid-caps are cheaper (₹200-₹1,000), so you can buy more shares with less money.
      
5. Less Competition from Big Investors
   • Mutual funds and foreign investors focus more on large caps.
   • This means you can find undervalued mid-caps before others notice.
      
6. Good for Long-Term Wealth
   • If you invest ₹5,000/month in mid-caps for 10 years, it can grow to ₹15-₹20 lakhs (compared to ₹8-₹10 lakhs in large-caps).

Key Factors Affecting the Mid-Cap Stocks
 

Remember:
Mid-caps dance to these tunes! Watch these factors to make smart decisions. They can give great returns but need more attention than big company stocks.

Best Mid-Cap Stock in India

These Mid-Cap stocks are selected based on their previous data and performance, which helps you invest and clears your thoughts about them. In this table, you read about the Mid-Cap Stocks' names, market caps, P/E ratios, dividend yields enhancing your knowledge of the stock market.
 

Factors to Consider Before Investing in Mid-Cap Stocks in India

Mid-cap stocks (companies ranked 101-250 in India) can grow fast but are riskier than large-cap stocks. Here’s what Akash, a CA, should check the factors before investing:

1. Company’s Financial Health (Akash’s Strength as a CA!)

• Akash, being a CA, can easily check the company’s:
  • Profit growth (last 5 years)
  • Debt level (less debt = safer)
  • Cash flow (the company should have enough cash)
• Example: If a mid-cap company like Tata Elxsi has rising profits & low debt, it’s a good sign.

2. Business Model (What Does the Company Do?)

• Akash should pick companies with simple & strong businesses.
• Example: A company like Polycab (wires & cables) has steady demand.

3. Management (Trustworthy Leaders?)

• Check if promoters (owners) are honest & experienced.
• Example: A company like Page Industries (Jockey brand) has strong management.

4. Sector Growth (Is the Industry Growing?)

• Mid-caps in growing sectors (like EVs, Pharma, IT) do better.
• Example: KPIT Technologies (auto software) is growing due to EV demand.

5. Valuation (Not Too Expensive?)

• Akash should avoid overpriced stocks (compare the P/E ratio with peers).
• Example: If a stock’s P/E is 50 but the industry average is 30, it’s costly.

6. Liquidity (Can Akash Sell Easily?)

• Some mid-cap stocks have low trading volumes, making selling difficult.
• Example: Stocks like Craftsman Automation trade actively (easy to buy/sell).

7. Risk Tolerance (Can Akash Handle Ups & Downs?)

• Mid-caps can fall 30-50% in bad times.
• Akash should only invest money he won’t need for 5+ years.

Why Mid-Caps Are Good for Akash (CA Advantage!)

• Akash, as a CA, can analyse financial reports better than others.
• He can spot good mid-cap stocks early before they become expensive.
• Example: If Akash had invested ₹1 lakh in Trent (Westside) in 2018, it would be ₹10 lakh+ today!

Final Advice for Akash:

• Invest only 10-20% of his portfolio in mid-caps.
• Pick 3-5 strong mid-cap stocks (not just one).
• Hold for long term (5+ years) for best returns.
   

Challenges & Risk in Mid-Cap stock in India 

Mid-cap stocks can make big money, but they also come with big risks. Since Akash is a CA, he can understand these risks better than others. Here’s what he must watch out for:
 

Example: If Akash had invested in IRB Infra (mid-cap) without checking the debt, he would have lost money. But if he picked Trent (Westside), he’d have made big profits!

Future of Mid-Cap Stock in India

In the Stock Market future will be predicted by stock data and technical analysis. So here is the information about the future of the Mis-Cap Stocks.

1. Good Growth Potential

• Mid-cap companies (like Tata Elxsi, Polycab, KPIT) are growing fast because:
  • The Indian economy is expanding
  • More people are investing in stocks
  • Government supports small & mid-sized businesses
• Akash’s Benefit: As a CA, he can pick future winners early before they become expensive.

2. More Volatility (Up-Down Prices)

• Mid-caps rise fast in good times but fall hard in bad times (like elections, global crises).
• Example: Real example:
  In early 2025, the Nifty Midcap 100 index; which tracks mid-cap stocks; fell more than 20% from its peak during a market correction, wiping out significant value before stabilising later in the year. Specifically, the index tumbled over 21% from highs, erasing substantial market capitalisation as broader risk-off sentiment hit smaller stocks harder than large caps. This kind of movement shows how mid-caps can swing more dramatically than large-cap benchmarks during down-moves.
• Akash’s Benefit: Instead of waiting for market rallies, a skilled investor can identify strong mid-cap companies during temporary price falls and buy them at lower valuations, improving long-term returns without emotional decision-making.

3. Big Companies of Tomorrow

• Today’s mid-caps can become the next Tata, Infosys, or Asian Paints.
• Example: Page Industries (Jockey) was once a mid-cap, now a large-cap.
• Akash’s Benefit: If he finds such stocks early, he can make huge profits.

4. More Risk Than Large-Caps

• Not all mid-caps will survive. Some may fail due to debt, fraud, or bad management.
• Example: Companies like Yes Bank, DHFL collapsed after mismanagement.
• Akash’s Benefit: As a CA, he can avoid risky companies by checking their finances.

5. SIP (Slow & Steady Investment) is Best

• Instead of a lump sum, Akash can invest monthly (SIP) to reduce risk.
• Example: ₹10,000/month in 3-4 good mid-caps for 5+ years = big returns.

Who Should Invest in Mid-Cap Stock?
 

How to Invest in Mid-Cap Stocks?

1. Open a Demat 

To invest in any share on the BSE or NSE, you should have a demat account in the name of a SEBI-approved broker. The trending best ones are Zerodha, Upstox, Groww, Angel One, and ICICI Direct.

2. Invest in Mid Cap Stock List 

Use websites like financial websites and apps like Screener, Moneycontrol, or Value Research for searching Mid-Cap companies. Look out for key indicators such as:

• Price to Earnings (P/E) Ratio
• Dividend Yield
• Return on Equity (RoE)
• Debt to Equity Ratio
• Analyst Buy Ratings

3. Start with Small Amounts

• First, invest ₹5,000–10,000 per stock.
• Don’t rush: buy slowly over months (avg. cost).

4. Use SIP (Monthly Investing)

• Instead of a lump sum, invest ₹5,000/month in mid-cap stocks.
• Reduces the risk of buying at high prices.

5. Hold for Long Term (5+ Years)

• Mid-caps take time to grow.
• Example: ₹1 lakh in Trent (Westside) in 2015 = ₹25+ lakhs today!

6. Monitor but Don’t Panic

• Check news & results, but ignore short-term ups/downs.
• Don’t sell if stock falls 20-30% (unless fundamentals change).

Final Thoughts: Should You Invest in Mid-Cap Stocks?

Mid-cap stocks can provide substantial returns if you choose wisely and remain patient, but they aren’t suitable for everyone. If you’re young, able to tolerate risk, and prepared to hold investments for 5+ years, mid-caps can yield significant profits. For example, a ₹1 lakh investment in Trent grew to over ₹25 lakhs in 10 years. However, if you're prone to panic during a 30-40% market decline or need quick access to funds, it's best to avoid them.

Always check the company’s finances (profit, debt, management), start small, and spread your money across 4-5 stocks. Mid-caps are like fast bikes, they can zoom ahead but may also skid. If you understand the risk and have time, they can be great. Otherwise, stick to safer options like large-caps or mutual funds. Think long-term, don’t panic, and invest wisely! 

FAQs

1) What are the best mid-cap stocks to buy now?

There’s no universal “best” list, because mid-cap stock suitability depends on your goals, risk tolerance, and time horizon. However, many market screeners and analysts highlight mid-cap companies with strong fundamentals, reasonable valuations, and growth potential, such as those in manufacturing, healthcare, and defence sectors (e.g., Solar Industries India, Mazagon Dock, Indian Hotels, Max Healthcare). These firms often combine growth prospects with more established business models than small caps, but they still carry higher risk and volatility than large caps, so thorough research and diversification remain essential. 

2) Is it safe for beginners to invest in mid-cap stocks?

Mid-cap stocks can be suitable for beginners, but only with caution. They generally offer higher growth potential than large-cap stocks, yet they are more volatile and carry higher risk. For beginners, safety depends on choosing fundamentally strong companies, investing for the long term, and avoiding putting all money into mid-caps at once. A balanced approach; combining mid-caps with large-caps or investing through diversified mutual funds; can help reduce risk while still benefiting from mid-cap growth opportunities.

3) Where can I get the list of all small and mid-cap stocks of BSE and NSE?

You can get comprehensive lists of small and mid-cap stocks from official exchange websites (NSE and BSE), financial data portals, and screening tools. NSE and BSE offer downloadable stock lists that can be filtered by market capitalisation. Websites such as Screener.in and financial portals also let you screen and export lists based on market-cap criteria (small vs mid). Using these tools helps you ensure up-to-date, exchange-verified coverage of all eligible stocks.

4) Which mid-cap stocks have strong potential to deliver good returns in the next 1–3 years?

On Reddit, investors often point to mid-cap stocks with solid earnings growth, industry positioning, and reasonable valuations as having “strong potential.” However, these are subjective views and not financial advice. The key idea shared is that stocks with good operational performance, positive sector trends, and manageable debt tend to attract interest from both retail and institutional investors. Because discussions on Reddit are opinion-based, combine them with fundamental analysis and verified financial metrics before making decisions. 

5) Any undervalued small or mid-cap stocks to buy? 

Reddit contributors often look for undervalued small and mid-cap stocks trading at lower price-to-earnings (P/E) or price-to-book (P/B) ratios relative to their peers. While specific names vary by user opinion, the general investing principle is to identify companies with strong balance sheets, consistent cash flows, and stable or improving earnings that the market has temporarily overlooked. Always check recent earnings, competitive position, and broader sector trends, as “undervalued” can also reflect unresolved company-specific challenges. 

6) Why did small cap and midcap not experience the same rally? 

Small and mid-cap stocks often lag broader market rallies when investor risk appetite declines or valuations become stretched. In India, elevated valuations, tighter liquidity conditions, and profit booking after prior outperformance have dampened interest in smaller stocks compared to large caps. Foreign institutional investors have also reduced exposure to riskier segments, turning capital toward safer or undervalued assets, which has contributed to the relative underperformance of mid and small caps despite broader market gains.

 

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.