Financial inclusion dominates mid-cap narrative in August 2025

2 Sep 2025 , 11:59 AM

FINANCIAL INCLUSION: A PROXY FOR THE INDIA STORY

After gaining 16% between April and June; Nifty Mid-Cap index fell -3.93% in July. In August, the index fell another -3.82%. The theme that dominated the mid-cap story in August 2025 was, once again, financial inclusion. Despite pressure on net interest margins (NIMs), investors saw traction in financial plays due to their predominantly domestic colour of business. Also, the BFSI focus this time is not just the banks, but includes a host of granular financial plays like digital finance, payment systems, insurance, AMCs, and micro banking.

MID-CAP MOMENTUM RETURNS IN AUGUST 2025

In terms of 1-month returns, Nifty Mid-Cap 100 fell -3.82%. Out of the 95 eligible stocks in the index, only 25 stocks gave positive returns, while 70 stocks gave negative returns in August 2025. Here are the top-15.

Stock Symbol	Market Price	1-Mth Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
OLAELEC	54.42	28.20%	-55.06%	129.19	39.60	37.42%	57.88%
PAYTM	1,204.20	12.99%	117.67%	1,291.60	534.55	125.27%	6.77%
ABCAPITAL	278.10	11.68%	25.65%	292.40	149.01	86.63%	4.89%
NYKAA	230.80	7.63%	9.83%	236.96	154.90	49.00%	2.60%
CUMMINSIND	3,831.00	6.82%	2.45%	3,932.00	2,580.00	48.49%	2.57%
LTF	217.00	6.76%	27.45%	225.48	129.20	67.96%	3.76%
INDIANB	651.00	6.26%	16.31%	683.10	473.90	37.37%	4.70%
MFSL	1,611.00	6.23%	54.37%	1,674.80	950.00	69.58%	3.81%
SUPREMEIND	4,483.00	4.49%	-16.63%	5,615.00	3,095.00	44.85%	20.16%
COLPAL	2,328.60	4.23%	-35.36%	3,890.00	2,151.00	8.26%	40.14%
ASHOKLEY	126.95	4.17%	-49.97%	134.31	95.93	32.34%	5.48%
ESCORTS	3,574.90	4.03%	-6.52%	4,420.00	2,776.40	28.76%	19.12%
ALKEM	5,303.50	4.00%	-11.60%	6,439.90	4,491.65	18.07%	17.65%
TIINDIA	2,956.10	3.72%	-26.04%	4,810.80	2,407.10	22.81%	38.55%
ABFRL	77.30	3.62%	-75.34%	364.40	70.55	9.57%	78.79%

Data Source: NSE

In terms of sectoral mix; the top-15 had 5 Financial Inclusion stocks (Paytm, Aditya Birla Capital, L&T Finance, Indian Bank, and Max Financial), 4 Auto Stocks (Ola Electric, Ashok Layland, Escorts Kubota, and TI India), and 3 consumer stocks (Nykaa, Colgate Palmolive, and ABFRL). The others were sectorally distributed. The worst performers in August 2025 were bottom-up plays like Kalyan Jewellers, RVNL, BSE, PI Industries, Tata Elxsi, and BHEL.

HOW MID-CAPS DELIVERED ON 1-YEAR RETURNS?

Mid cap stocks as a whole, fell -5.36% in last one year. Out of 95 mid-cap stocks, only 1 stock (Paytm) gave more than 100%, while 2 stocks gave over 50% returns. A total of 65 out of 95 mid-cap stocks gave negative returns yoy. Here are the top-15 best performers.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
PAYTM	1,204.20	12.99%	117.67%	1,291.60	534.55	125.27%	6.77%
MFSL	1,611.00	6.23%	54.37%	1,674.80	950.00	69.58%	3.81%
BHARTIHEXA	1,756.00	-1.42%	50.95%	2,052.90	1,167.05	50.46%	14.46%
MUTHOOTFIN	2,639.00	0.17%	33.64%	2,807.00	1,756.05	50.28%	5.99%
MAXHEALTH	1,150.00	-8.72%	33.21%	1,314.30	850.20	35.26%	12.50%
SOLARINDS	13,782.00	-4.66%	32.55%	17,820.00	8,482.50	62.48%	22.66%
LTF	217.00	6.76%	27.45%	225.48	129.20	67.96%	3.76%
DIXON	16,695.00	-0.45%	26.42%	19,148.90	12,022.00	38.87%	12.81%
ABCAPITAL	278.10	11.68%	25.65%	292.40	149.01	86.63%	4.89%
UPL	713.05	-0.85%	23.88%	741.00	484.90	47.05%	3.77%
HDFCAMC	5,475.00	-3.65%	22.65%	5,927.50	3,563.05	53.66%	7.63%
MOTILALOFS	857.35	-8.15%	18.17%	1,064.00	513.00	67.12%	19.42%
INDIANB	651.00	6.26%	16.31%	683.10	473.90	37.37%	4.70%
GLENMARK	1,919.70	-10.67%	13.75%	2,284.80	1,275.50	50.51%	15.98%
AUBANK	718.35	-3.79%	12.13%	841.00	478.35	50.17%	14.58%

Data Source: NSE

On YOY basis, the list was spread across several sectors, but some favourites did emerge. There was a dominance of Financial Inclusion at 9 stocks (Paytm, Max Financial, Muthoot Finance, L&T Finance, Aditya Birla Capital, HDFC AMC, Motilal Oswal, Indian Bank, and AU Bank); and Healthcare 2 stocks (Max Health, Glenmark Pharma). The other stocks were spread across sectors. The names at the bottom were stock-specific stories like Oil India, CONCOR, IREDA, Mazagaon Docks, Tata Tech, and KPIT Tech.

HOW RESILIENT WERE MID-CAP STOCKS IN LAST ONE YEAR?

In terms of bounce from the lows, the mid-caps overall bounced 18.91%. Total of 2 stocks more than doubled, and 14 jumped over 50%. Top-20 average bounce was 63.38%.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
BSE	2,099.00	-14.70%	-25.45%	3,030.00	900.03	133.21%	30.73%
PAYTM	1,204.20	12.99%	117.67%	1,291.60	534.55	125.27%	6.77%
ABCAPITAL	278.10	11.68%	25.65%	292.40	149.01	86.63%	4.89%
MFSL	1,611.00	6.23%	54.37%	1,674.80	950.00	69.58%	3.81%
LTF	217.00	6.76%	27.45%	225.48	129.20	67.96%	3.76%
MOTILALOFS	857.35	-8.15%	18.17%	1,064.00	513.00	67.12%	19.42%
SOLARINDS	13,782.00	-4.66%	32.55%	17,820.00	8,482.50	62.48%	22.66%
BDL	1,440.00	-11.39%	10.55%	2,096.60	890.00	61.80%	31.32%
POLYCAB	7,085.00	2.31%	5.15%	7,605.00	4,555.00	55.54%	6.84%
HDFCAMC	5,475.00	-3.65%	22.65%	5,927.50	3,563.05	53.66%	7.63%
GLENMARK	1,919.70	-10.67%	13.75%	2,284.80	1,275.50	50.51%	15.98%
BHARTIHEXA	1,756.00	-1.42%	50.95%	2,052.90	1,167.05	50.46%	14.46%
MUTHOOTFIN	2,639.00	0.17%	33.64%	2,807.00	1,756.05	50.28%	5.99%
AUBANK	718.35	-3.79%	12.13%	841.00	478.35	50.17%	14.58%
PRESTIGE	1,561.90	-3.88%	-9.49%	1,972.00	1,048.05	49.03%	20.80%

Data Source: NSE

On resilience, the list was dominated by 9 Financial Inclusion Stocks (BSE, Paytm, AB Capital, Max Financial, L&T Finance, Motilal Oswal, HDFC AMC, Muthoot Finance, and AU Bank); and 2 Defence stocks (Solar Industries, Bharat Dynamics). The other stocks were spread out, but largely matched 1-year return rankings. The list at the bottom included RVNL, Petronet LNG, ACC, Aurobindo, Godrej Properties, Torrent Power, IREDA, IRB, IRCTC, and Lupin.

HOW MID-CAPS STOCKS RANKED ON SWING FACTOR

In terms of proximity to the peak, the index was 8.53% short of the peak. Total of 8 stocks are less than 5% from the peak and 14 stocks are less than 10% from the peak.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
CUMMINSIND	3,831.00	6.82%	2.45%	3,932.00	2,580.00	48.49%	2.57%
NYKAA	230.80	7.63%	9.83%	236.96	154.90	49.00%	2.60%
LTF	217.00	6.76%	27.45%	225.48	129.20	67.96%	3.76%
UPL	713.05	-0.85%	23.88%	741.00	484.90	47.05%	3.77%
MFSL	1,611.00	6.23%	54.37%	1,674.80	950.00	69.58%	3.81%
MARICO	726.00	3.24%	9.85%	759.00	577.85	25.64%	4.35%
INDIANB	651.00	6.26%	16.31%	683.10	473.90	37.37%	4.70%
ABCAPITAL	278.10	11.68%	25.65%	292.40	149.01	86.63%	4.89%
ASHOKLEY	126.95	4.17%	-49.97%	134.31	95.93	32.34%	5.48%
MUTHOOTFIN	2,639.00	0.17%	33.64%	2,807.00	1,756.05	50.28%	5.99%
PAYTM	1,204.20	12.99%	117.67%	1,291.60	534.55	125.27%	6.77%
POLYCAB	7,085.00	2.31%	5.15%	7,605.00	4,555.00	55.54%	6.84%
HDFCAMC	5,475.00	-3.65%	22.65%	5,927.50	3,563.05	53.66%	7.63%
MRF	1,40,000.00	-6.05%	4.86%	1,53,000.00	1,02,124.05	37.09%	8.50%
PATANJALI	1,777.60	-6.44%	-7.41%	2,011.00	1,570.00	13.22%	11.61%

Data Source: NSE

In terms of proximity to the peak, the list is dominated by 7 financials (L&T Finance, Max Financial, Indian Bank, Aditya Birla Capital, Muthoot Finance, Paytm, and HDFC AMC); 3 Consumer stocks (Nykaa, Marico, and Patanjali); and 2 Auto Stocks (Ashok Leyland and MRF). Companies farthest from the peak were stocks like ABFRL, Vodafone Idea, Ola Electric, RVNL, Oil India, IREDA, and Godrej Properties. Like in the large caps, even in mid-caps, financial inclusion is acting as a proxy for the domestic India story.