Best midcap and smallcap stocks to buy today—recommended by Raja Venkatraman
Published on 19/08/2025 06:00 AM
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Midcap and smallcap stocks have been under significant pressure as investors brace for the Union government’s GST overhaul and the outcome of US President Donald Trump’s meeting with Ukraine President Volodymyr Zelenskyy.
Yet, even in this cautious environment, certain high-quality midcaps and smallcaps continue to attract steady buying interest. The challenge now is to zero in on those resilient names and tactically deploy capital for a short-term rebound.
Here are three midcap stocks to buy on 19 August, as recommended by Raja Venkatraman of NeoTrader.
KIRLOSENG: Buy CMP and dips to ₹915 | Stop: ₹898 | Target: ₹1,040-1,085
NESCO: Buy CMP and dips to ₹1,398 | Stop: ₹1,370 | Target: ₹1,550-1,585
KPIL: Buy at CMP and dips to ₹1,240 | Stop: ₹1,215 | Target: ₹1,365-1,410
The BJP government's recent policy initiatives and GST reforms are expected to strongly influence India’s midcap market landscape, both immediately and in the longer term.
1. Strengthening fundamentals: With GST reforms targeting ease of doing business and reducing costs, midcap companies—especially those in sectors impacted by rate cuts (e.g., food processing, renewable energy, medical devices)—stand to benefit from improved operating margins and expanded demand.
2. Risk and return profile: Recent mutual fund analysis suggests midcap funds have delivered strong performance, with returns ranging from 21% to nearly 27% over the last three years. However, market experts recommend midcap investments, primarily to those with high-risk tolerance and a long-term horizon, as the segment remains volatile amid reform transitions.
3. Sectoral leaders: Stocks in retail, electronics manufacturing, packaging, and water treatment—sectors benefiting directly from GST relief or supply chain simplification—have been highlighted for potential upside by leading brokerages. The midcap sector remains the “growth engine" of the Indian market, poised to benefit as companies leverage reforms for accelerated expansion.
The midcap market is set for robust growth, driven by government-led reforms that reduce compliance costs, boost sectoral demand, and ease regulatory bottlenecks. Companies should capitalize on these opportunities by embracing automation and updating systems for new GST mandates.
On the charts, too, we can see a rebound from the lower levels as the momentum is showing a positive divergence that can help the trends revive and generate an upward trajectory in the coming days.
KIRLOSENG: Buy CMP and dips to ₹915 | Stop: ₹898 | Target: ₹1,040-1,085
NESCO: Buy CMP and dips to ₹1,398 | Stop: ₹1,370 | Target: ₹1,550-1,585
KPIL: Buy at CMP and dips to ₹1,240 | Stop: ₹1,215 | Target: ₹1,365-1,410
Overall, midcap and smallcap stocks still hold appeal for those chasing returns above traditional largecap equities. Yet, their propensity for swift price movements calls for a robust game plan, disciplined execution, and comprehensive due diligence.
As themes in emerging markets shift—propelled by economic growth and technological breakthroughs—savvy investors who carefully weigh these growth prospects against their accompanying risks are well-positioned to reap meaningful gains over the long haul.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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