These mid-cap stocks with ‘Strong Buy’ & ‘Buy’ recos can rally over 30%, according to analysts

Analysts identify mid-cap picks with high upside potential amid favorable market sentiment

As Indian equity markets trade near record highs, analysts are drawing investor attention to select mid-cap stocks that have received ‘Strong Buy’ or ‘Buy’ ratings and are poised for over 30% upside in the next 12 months. These companies, backed by solid fundamentals, consistent earnings growth, and favorable sectoral outlook, are emerging as top picks in an otherwise valuation-sensitive market.

Mid-Cap Momentum Continues

The Nifty Midcap 100 index has gained over 15% year-to-date (YTD), outperforming the benchmark Nifty 50. This rally has been driven by improved earnings visibility, sectoral tailwinds in manufacturing, financials, and consumption, and renewed interest from domestic institutional investors.

“In the current market cycle, mid-caps are offering a compelling blend of growth and valuation comfort,” said Rakesh Arora, Managing Partner at Go India Advisors. “Investors looking for alpha are increasingly rotating towards quality mid-cap names that have clear earnings catalysts.”

Stocks With High Upside Potential

Here are some of the mid-cap stocks that analysts say can deliver gains of over 30%, based on current price targets and recent research coverage.

1. Aether Industries Ltd

• CMP: ₹880

• Target Price: ₹1,160

• Upside Potential: 32%

• Recommendation: Strong Buy

• Sector: Specialty Chemicals

Aether Industries, a high-growth specialty chemicals company, has been a consistent performer since its listing. Analysts at Axis Securities have maintained a ‘Strong Buy’ on the stock, citing its expanding product portfolio, strong R&D pipeline, and rising exports.

“Aether’s margin profile and scalability make it one of the most promising mid-cap bets in the chemicals space,” said Ankur Shah, Chemicals Analyst at Axis Securities.

2. KFin Technologies Ltd

• CMP: ₹520

• Target Price: ₹690

• Upside Potential: 32.6%

• Recommendation: Buy

• Sector: Fintech/Capital Markets Infrastructure

KFin Technologies is a leading registrar and transfer agent (RTA) offering tech-driven services in capital markets. Analysts at ICICI Direct believe the company will benefit from rising mutual fund penetration and digital adoption in financial services.

“We see KFin’s tech edge and client diversification driving 18-20% CAGR in revenue over the next two years,” said Vivek Maheshwari, Senior Analyst, ICICI Direct.

3. Blue Star Ltd

• CMP: ₹1,490

• Target Price: ₹1,965

• Upside Potential: 31.8%

• Recommendation: Buy

• Sector: Consumer Durables/Engineering

Blue Star’s consistent order inflows in commercial cooling, strong performance in residential air conditioning, and export momentum position it well in the mid-cap universe. JM Financial has a ‘Buy’ rating on the stock.

“The company is a key beneficiary of India’s infrastructure capex and growing demand for energy-efficient products,” noted Ritika Bansal, analyst at JM Financial.

Sectoral Catalysts at Play

Several mid-cap sectors are witnessing tailwinds, including:

• Specialty Chemicals: India is emerging as a global alternative to China in chemical manufacturing.

• Financial Infrastructure: Regulatory push for digital compliance and fintech integration is fueling growth.

• Consumer Durables: Rural demand revival and electrification are expanding addressable markets.

“The risk-reward trade-off in mid-cap stocks is improving as input cost pressures stabilize and margins begin to normalize,” said Neha Sharma, fund manager at a Mumbai-based mutual fund house. “Companies with scale, pricing power, and innovation are clear beneficiaries.”

Risks to Watch

Despite the optimism, experts advise caution due to potential risks such as global macro uncertainty, supply chain disruptions, and currency volatility. Valuations in some pockets of the mid-cap space are already stretched, requiring careful stock selection.

“Investors should avoid herd behavior and instead focus on companies with earnings visibility, leadership in niche segments, and sound corporate governance,” added Sharma.

Investor Outlook

For long-term investors, mid-cap stocks continue to offer a sweet spot between growth and reasonable valuations. With improving domestic economic conditions and strong institutional flows, the space is likely to remain in focus.

“A bottom-up approach is critical when investing in mid-caps,” said Devang Mehta, Head of Equity Advisory at Centrum Wealth. “Diversification and disciplined allocation can help capture the upside while managing risk.”

As the second half of 2025 unfolds, these high-conviction mid-cap ideas, supported by strong fundamentals and sectoral drivers, could be the growth engines in investor portfolios.