3 Beaten Mid-Cap Stocks to Add to Your Watchlist

January 24, 2026

Midcap stocks have faced significant selling pressure in recent months. In the last month alone, the Nifty Midcap 100 index has fallen 4.27% from 60,816.10 to 58,256.

However, indices cannot always capture the full extent of challenges in the broader market, with several stocks falling significantly more than what the index suggests.

Here’s a discussion of three hard-hit mid-cap stocks. These companies were chosen based on their relatively low price-to-earnings (PE) ratios compared to their respective industries.

They are notable not only for the sharp decline in share prices, but also for the promising growth strategies outlined during recent earnings calls. These stocks are within a market capitalization range of Rs 50 billion (billion) to Rs 100 billion.

This editorial is not a recommendation for these stocks.

#1 KRBL

KRBL is India’s largest rice miller and exporter of basmati rice, founded in 1889 and headquartered in Noida. The company is active in the agricultural segment and produces rice and by-products such as bran oil, and in the energy segment with energy generation from wind, shell and solar power plants.

The India Gate brand dominates KRBL’s portfolio.

The company has a forward price-to-earnings ratio of 12.4 times. KRBL has been paying dividends for the past five years.

Source: BSEOn the financial front, the company reports revenues of Rs 15,111 mln for the second quarter of FY26, compared to Rs 12,705 mln year-on-year. The company reported a net profit of Rs 1,721 mln versus Rs 1,027 mln YoY.

The company fared well on the export front, with Q2 FY26 revenue at Rs4,380m compared to Rs2,520m in Q2FY25, registering a 70% year-on-year (year-on-year) growth.

KRBL is now expanding into the real estate sector. The company believes that its core agri-food business will generate robust cash flows with minimal future capital investment and working capital needs.

This gives the country the opportunity to use surplus resources effectively by moving away from low-yield government bonds and making use of underutilized bank limits.

The company has significant land reserves, especially in Ghaziabad, which offers significant value unlocking potential. The company plans to monetize this approximately 110-acre plot, which is currently valued at around Rs 25 billion, while relocating the existing factory in the next two to three years.

With disciplined sourcing, premiumization of its product portfolio, expansion into high-potential regions and operational realisation, KRBL is well positioned to strengthen its leadership in the global rice industry.

#2 Akums drugs and pharmaceuticals

Second on our list is Akums Drugs and Pharmaceuticals (Akums Drugs and Pharma), India’s largest contract development and manufacturing organization (CDMO).

The company has developed more than 4,100 commercialized formulations in more than 60 dosage forms, targeting key therapeutic areas such as cardio-diabetes, neurology, gynecology, nephrology, anti-infectives, respiratory, analgesics and multivitamins.

The stock is trading at a price-to-earnings ratio of 20 and a price-to-earnings ratio (PB) of 2. This is well below the industry average for the pharmaceutical sector. The sector has a book price of 4.75 and a PE of 32 times.

Source: BSEShares of Akums Drugs and Pharma are down 32% from their 52-week high.

In terms of financials, the company’s revenues declined from Rs 10,331 million YoY to Rs 10,175 million in the second quarter of FY26. Akums Drugs’ net profit fell from Rs 667 million to Rs 427 million during the same period.

As API prices continued to decline throughout the quarter, margins declined. The company claims that the drop in API prices is still widespread and affects all API categories.

Going forward, the company will work with the Government of the Republic of Zambia. To set up a production facility in Zambia, a joint venture would be formed with the Zambian government. 51% of the joint venture will be owned by Akums Drugs.

Apart from that, Akums Drugs and Pharma recently underwent European GMP audit for Plant 2 in October 2025 and is expected to get the approval in the fourth quarter of this year.

The company has promising prospects with its Zambian joint ventures and new initiatives on the export front. However, investors should be wary of price pressure on APIs.

#3 Shakti pumps (India)

Next on our list is the Shakti Pumps stock.

Shakti Pumps (India) is a leading manufacturer of energy efficient motors and submersible pumps, specializing in solar pumping solutions, with operations in more than 125 countries. The company’s stock currently trades at a price-to-earnings ratio of 20, with an ROE of 35.3% and a ROCE of 50.3%.

Source: BSEShares of Shakti Pumps are down 45% from 52-week highs.

The company’s revenues rose 5% year-on-year to Rs 6,664 mln in the second quarter of FY26. The company’s net profit fell from Rs 1,014 mln to Rs 907 mln on a year-on-year basis.

Prices of key raw materials such as steel, copper and solar panels rose by roughly 3-4% due to erratic market conditions, which negatively impacted margins and net profit. The scope of final orders for solar pumps was changed in some regions due to GST 2.0, which had an impact.

As of November 7, 2025, the order book stood at approximately Rs 13,000 million, reaffirming Shakti Pumps’ leadership in the solar pump sector.

While significant orders expected from states like Madhya Pradesh and Rajasthan have not yet been completed despite active participation in bidding, the company’s solid pipeline ensures a strong outlook and promising prospects for accelerated growth.

Investors should evaluate the company’s fundamentals, corporate governance and stock valuations as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such. Read more about our referral services here…