Midcap stocks trading below industry P/E averages present compelling opportunities for value-conscious investors seeking growth potential. These companies often fly under the radar despite solid fundamentals, offering an attractive entry point before institutional recognition drives valuations higher. This market inefficiency creates a sweet spot for informed investors looking to capitalise on the midcap growth story.
Trump’s tariffs on steel, aluminium, and other goods have disrupted India’s exports, weakened the rupee, and heightened trade tensions. While challenges like reduced competitiveness and inflation persist, India may benefit from trade diversions as U.S. importers seek alternatives to Chinese goods, provided it enhances production and strategic trade policies. Overall market sentiment is down.
Polycab India Limited
Is a leading electrical equipment manufacturer specialising in wires, cables, and FMEG products. With a 25-26% market share, it operates 28 manufacturing units, driving innovation and efficiency in India’s electrical industry.
The share price of Polycab India Limited went up 0.86 percent to Rs. 5,805.55 per share on Friday, an increase from its previous close of Rs. 5,756.25 per share. The market capitalisation now stands at approximately Rs. 87,327 crore as of February 21, 2025.
With a P/E ratio of 46.44, just below the industry average of 45.4, the stock seems fairly valued. It is also trading at a 27% discount from it’s 52-week highs of Rs. 7,605.
NMDC
A state-owned mining giant dominates India’s iron ore production, supplying essential raw materials to domestic steel producers. Its strategic operations strengthen the country’s mineral sector, ensuring a steady supply for industrial growth.
The share price of NMDC Limited went up 0.42 percent to Rs.67.40 per share on Friday, an increase from its previous close of Rs. 67.12 per share. The market capitalisation now stands at approximately Rs. 59,256 crore as of February 21, 2025.
With a P/E ratio of 9.09, well below the industry average of 19.9, the stock appears undervalued. It is also trading at a 29% discount from it’s 52-week highs of Rs. 95.45.
Mphasis
A leading IT services firm specialises in application development, infrastructure management, and BPO. By leveraging cloud and cognitive technologies, it enhances customer experiences and drives digital transformation for global enterprises.
The share price of Mphasis Limited went down 2.74 percent to Rs. 2,565 per share on Friday, a decline from its previous close of Rs. 2,637.25 per share. The market capitalisation now stands at approximately Rs. 48,718 crore as of February 21, 2025.
With a P/E ratio of 30.38, below the industry average of 35.36, the stock appears reasonably valued. It is also trading at a 21% discount from its 52-week highs of Rs. 3,237.95.
Exide Industries
A key battery manufacturer, it produces lead-acid storage solutions for automotive and industrial applications. Known for innovation and a diverse product portfolio, it plays a vital role in India’s energy storage ecosystem.
The share price of Exide Industries Limited went down 2.93 percent to Rs. 363.95 per share on Friday, a decline from its previous close of Rs. 374.95 per share. The market capitalisation now stands at approximately Rs. 30,935 crore as of February 21, 2025.
With a P/E ratio of 39, close to the industry average of 39.04, the stock seems fairly valued. It is also trading at a 41% discount from it’s 52-week highs of Rs. 620.35.
Written By Fazal Ul Vahab C H
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