Ignore volatility and look for long-term opportunities: 5 mid-cap stocks from different sectors with upside potential of over 23%

Ignore the Noise: Mid-Caps Present Promising Long-Term Potential

In a market where daily swings often dominate investor sentiment, a growing number of analysts and fund managers are advocating for a long-term approach, especially in the mid-cap segment. With the Indian stock market experiencing intermittent volatility driven by global economic cues, elections, and inflationary pressures, savvy investors are increasingly shifting their focus to fundamentally strong mid-cap stocks that are poised for sustained growth.

Experts suggest that several mid-cap companies, across different sectors, offer attractive valuations and solid growth prospects, with upside potential of over 23% in the next 12-18 months.

Market Context: Navigating Through Volatility

Mid-cap stocks—typically defined as companies with a market capitalization between ₹5,000 crore and ₹20,000 crore—have historically offered a sweet spot between the stability of large-caps and the explosive potential of small-caps. However, their prices tend to react more sharply to market developments, making investor discipline crucial.

According to Rahul Jain, Head of Research at Systematic Wealth, “Short-term volatility should not distract investors from the underlying strength of India’s economic trajectory. Mid-caps are benefiting from both domestic consumption and export tailwinds.”

1. KEI Industries (Sector: Electrical Equipment)

Upside Potential: ~26%

KEI Industries, a key player in the wires and cables segment, is gaining traction from increasing government and private investments in power infrastructure and housing.

Analysts from ICICI Direct note: “The company’s strong order book, robust dealer network, and focus on retail expansion bode well for its future growth. With a planned capex to boost capacity and exports, KEI is well-positioned to ride the infrastructure wave.”

CMP: ₹3,200 | Target Price: ₹4,030

2. Triveni Turbine (Sector: Capital Goods)

Upside Potential: ~25%

A leader in industrial steam turbines, Triveni Turbine has seen consistent improvement in its margin profile and order inflows from domestic and international clients.

Siddharth Ghosh, Capital Goods Analyst at Motilal Oswal, says, “The global shift towards energy efficiency and clean tech is creating strong demand for Triveni’s products. Its foray into aftermarket services is another revenue generator.”

CMP: ₹475 | Target Price: ₹595

3. Jubilant Ingrevia (Sector: Specialty Chemicals)

Upside Potential: ~28%

Jubilant Ingrevia, a demerged entity from Jubilant Life Sciences, operates in a niche but growing specialty chemicals space, catering to pharmaceuticals, agrochemicals, and nutrition markets.

Kotak Institutional Equities notes, “The company’s backward integration, cost advantages, and product pipeline make it a compelling story in India’s chemicals upcycle.”

CMP: ₹520 | Target Price: ₹665

4. KFin Technologies (Sector: Fintech Services)

Upside Potential: ~24%

KFin Technologies, a registrar and transfer agent (RTA), has shown resilience and steady earnings growth. With India’s mutual fund industry expanding and SIP inflows hitting record highs, KFin stands to benefit significantly.

Ritika Mehra, Financial Services Analyst at JM Financial, comments, “KFin’s digital-first approach and upcoming product innovations are likely to enhance its market share.”

CMP: ₹615 | Target Price: ₹760

5. Sona BLW Precision Forgings (Sector: Auto Ancillaries/EV)

Upside Potential: ~27%

Sona BLW is gaining attention as a premium auto component maker, particularly in the electric vehicle (EV) space, with a strong global client base and cutting-edge product offerings in differential gears and motor systems.

HDFC Securities states, “With its EV-related order book growing and expanding footprints in Europe and North America, Sona BLW remains a strong contender for long-term growth.”

CMP: ₹620 | Target Price: ₹790

Analyst Perspective: Fundamental Strength Matters

What ties these stocks together is not their sector, but their focus on long-term growth, innovation, and improving financial metrics. Despite near-term pressures like high interest rates and geopolitical tensions, analysts believe the fundamentals of these businesses are intact.

“Buying into quality mid-caps during market dips has historically delivered outsized returns,” says Arvind Reddy, Senior Equity Strategist at Axis Securities. “These companies are not just surviving the cycle but are well-prepared to thrive once stability returns.”

Investor Outlook: Focus on Discipline and Diversification

While mid-caps offer significant growth potential, investors must adopt a patient and disciplined approach. Diversification across sectors helps mitigate sector-specific risks. Moreover, keeping a time horizon of at least 2-3 years is recommended.

Investment advisor Neha Bansal suggests, “It’s not just about picking winners—it’s about staying invested through cycles. Mid-caps with strong balance sheets, visionary management, and sectoral tailwinds will reward patience.”

The current market churn offers a golden opportunity for investors willing to ignore the noise and stay committed to fundamentals. These five mid-cap stocks—spread across critical sectors from power to fintech and EVs—are emerging as solid long-term bets with upside potential of over 23%. For investors aiming to build wealth steadily, now might be a good time to accumulate selectively.