Tuesday, June 3, 2025
HomeStocksMid-cap stocks to buy: Being bullish and being selective are not mutually...

Mid-cap stocks to buy: Being bullish and being selective are not mutually exclusive: 5 mid-cap stocks from different sectors with upside potential of up to 22%

-

[ad_1]

Synopsis

Mid-caps may come under pressure and underperform in the short term. But over the long term, they do well. There are several data points to support this contention. To understand why, look at one factor – cost of capital. Consider: Fifteen years back, a company from a large and reputed industrial house raised money by floating corporate bonds at X% interest. A mid-size company would raise money at X% plus 200 basis points – paying 2% more for capital. Today, that large company is still raising money at “X%”, but what has changed is that the mid-sized company is also raising money at X%. The reason: Capital is now more easily available. The mid-cap has improved its balance sheet, which may be smaller than the large company, but, in terms of quality, is probably as good. So it is bound to do well because the quality of the balance sheet is what determines PE multiples.

There are phases in the market when mid-cap stocks come under strong selling pressure – as seen in the past few weeks. But if you consider the past 10 years, the best returns have come from mid-cap stocks. So, if you don’t have mid-caps in your portfolio, your returns will not be too high even in the longest of bull runs. Why do mid-cap stocks do well? Reason: When an economy like India grows at a faster pace, mid-sized companies are able to

  • FONT SIZE
  • SAVE
  • PRINT
  • COMMENT

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Why ?

  • Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

  • Stock analysis. Market Research. Industry Trends on 4000+ Stocks

  • Clean experience with
    Minimal Ads

  • Comment & Engage with ET Prime community

  • Exclusive invites to Virtual Events with Industry Leaders

  • A trusted team of Journalists & Analysts who can best filter signal from noise

  • ​Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-​

[ad_2]

Source link

LATEST POSTS

WitchSpin Casino: Daily ₱777 Bonus Explained

Online casinos attract players by offering exciting games and generous bonuses. One of the most popular features of WitchSpin Casino is its daily ₱777 bonus....

Gaming and Adventure Combined: The Ultimate Guide for Norwegian Tourists

For many Norwegian tourists, traveling is all about exploring new places, immersing themselves in different cultures, and seeking unforgettable adventures. But what if your journey...

Non-Disclosure Agreement for Customer Privacy Protection

In today's digital age, privacy concerns are more significant than ever, especially when it comes to safeguarding the personal and sensitive information of customers. Businesses...

How to Analyze Odds for a Spot Bet

The adrenaline rush of Spot Bet—placing wagers while the action unfolds—attracts countless sports enthusiasts seeking to capitalize on their real-time insights. Yet beneath this thrilling...

Most Popular

spot_img