10 Hidden Gem of Nifty midcap Stock: Investing in midcap stocks offers a unique opportunity to tap into companies that are poised for growth yet remain under the radar of many investors.
These “hidden gems” within the Nifty Midcap 100 index often present undervalued opportunities with significant potential for appreciation.
In this article, we will explore ten such midcap stocks that are currently trading below their sectoral price-to-earnings (P/E) ratios, indicating potential undervaluation.
1. REC Limited
In our list of 10 Hidden Gem of Nifty midcap Stock, REC Limited, formerly Rural Electrification Corporation, get 1st position, It is a public infrastructure finance company specializing in the power sector. With a P/E ratio of 5.54 compared to the sector average of 24.7, REC appears undervalued.
Target Prices (₹)
| 2025 | Up to ₹550 |
| 2026 | Up to ₹650 |
| 2027 | Up to ₹530 |
| 2028 | Up to ₹900 |
| 2029 | Up to ₹850 |
| 2030 | Up to ₹1000 |
2. Polycab India Limited
Polycab India is a leading manufacturer of wires and cables in India. The stock is trading at a P/E ratio of 53.6, while the consumer durables sector average is 79.1, suggesting undervaluation.
Target Prices (₹)
| 2025 | Up to ₹5850 |
| 2026 | Up to ₹6550 |
| 2027 | Up to ₹7550 |
| 2028 | Up to ₹8500 |
| 2029 | Up to ₹9540 |
| 2030 | Up to ₹12500 |
3. Power Finance Corporation (PFC)
PFC provides financial assistance to power sector projects across India. The stock has a P/E ratio of 4.21, significantly lower than the sector average of 24.7, indicating potential undervaluation.
Target Prices (₹)
| 2025 | ₹450 |
| 2026 | ₹650 |
| 2027 | ₹740 |
| 2028 | ₹820 |
| 2029 | ₹900 |
| 2030 | ₹1000 |
4. Shriram Finance Limited
Shriram Finance is a prominent non-banking financial company (NBFC) in India, offering a range of financial services. The stock’s P/E ratio is 12.12, compared to the sector average of 24.7, suggesting it may be undervalued.
Target Prices (₹)
| 2025 | ₹600 |
| 2026 | ₹840 |
| 2027 | ₹400 |
| 2028 | ₹690 |
| 2029 | ₹800 |
| 2030 | ₹980 |
5. Tata Communications Limited
Tata Communications is a global digital ecosystem enabler, offering a range of communication services. The stock is trading at a P/E ratio of 32.9, while the telecom services sector average is 53.6, indicating potential undervaluation.
Target Prices (₹)
| 2025 | ₹1,700 |
| 2026 | ₹2,000 |
| 2027 | ₹2,100 |
| 2028 | ₹2,500 |
| 2029 | ₹2,900 |
| 2030 | ₹4,000 |
Read also: Potential Multibaggers Stocks: Ready to Skyrocket
6. NMDC Limited
NMDC is India’s largest iron ore producer, playing a crucial role in the country’s mining industry. The stock has a P/E ratio of 7.2, significantly lower than the metal and mining sector average of 34.6, suggesting it may be undervalued.
Target Prices (₹)
| 2025 | ₹80 |
| 2026 | ₹100 |
| 2027 | ₹120 |
| 2028 | ₹90 |
| 2029 | ₹150 |
| 2030 | ₹210 |
Read more: Coforge share price Target for tomorrow 2025 to 2030
7. IDFC First Bank
IDFC First Bank offers a range of banking products and services to individuals and businesses. The stock’s P/E ratio is 23.2, slightly below the sector average of 24.7, indicating potential undervaluation.
Target Prices (₹)
| 2025 | ₹70 |
| 2026 | ₹75 |
| 2027 | ₹80 |
| 2028 | ₹120 |
| 2029 | ₹210 |
| 2030 | ₹250 |
8. Mphasis Limited
Mphasis is an IT services company specializing in cloud and cognitive services. The stock is trading at a P/E ratio of 28.5, while the software and services sector average is 65.7, suggesting it may be undervalued.
Target Prices (₹)
| 2025 | ₹3000 |
| 2026 | ₹3800 |
| 2027 | ₹3900 |
| 2028 | ₹4500 |
| 2029 | ₹5500 |
| 2030 | ₹6300 |
Read also: What Is Book Value of Share and Why Is It Important
9. Aurobindo Pharma Limited
Aurobindo Pharma is a pharmaceutical manufacturing company with a broad product portfolio. The stock has a P/E ratio of 25.5, compared to the sector average of 40.7, indicating potential undervaluation.
– **Target Prices (₹):**
| 2025 | ₹1400 |
| 2026 | ₹1800 |
| 2027 | ₹1700 |
| 2028 | ₹1900 |
| 2029 | ₹2100 |
| 2030 | ₹2400 |
10. Punjab National Bank (PNB)
PNB is one of India’s leading public sector banks, offering a wide range of banking services. The stock’s P/E ratio is 16.6, below the sector average of 24.7, suggesting it may be undervalued.
Target Prices (₹)
| 2025 | ₹115 |
| 2026 | ₹210 |
| 2027 | ₹180 |
| 2028 | ₹217 |
| 2029 | ₹220 |
| 2030 | ₹240 |
These ten companies exhibit lower P/E ratios compared to their sector averages, it’s essential to consider other factors such as growth prospects, financial health, and industry trends before making investment decisions.
As always, consulting with a financial advisor is recommended to align investments with individual financial goals and risk tolerance.
Disclaimer: The information provide in this article is for educational and informational purposes only and should not be consider as financial or investment advice. All stock target prices mentioned are based on current market trends and research; actual prices may vary due to market fluctuations and unforeseen events.
Readers are advise to conduct their own research and consult a certified financial advisor before making any investment decisions. The author and publisher do not hold any responsibility for financial losses or gains resulting from investments based on this content.
