Mid-caps hit hard in Feb-25 as investor confidence wanes

6 Mar 2025 , 10:16 AM

DEEP MONTHLY CUTS, ANNUAL RETURNS ARE NEGATIVE TOO

It has been the second consecutive month of a massive sell-off in mid-cap stocks, as depicted by the Mid-cap 100 index. The sentiments surrounding mid-caps has been tentative due to the oil prices uncertainty, Trump tariffs, and the USDINR equation. Most mid-caps tend to have larger drawdowns in falling markets and that is starting to manifest now. In a sense, it started with the stringent SEBI norms to regulate the mid-cap and small cap rally. However, the fall has become a lot more intense than was originally anticipated.

HOW WERE MID-CAP MOMENTUM RETURNS IN FEBRUARY 2025

In terms of 1-month returns, the Nifty Mid-Cap 100 gave -9.11%. Out of the 96 eligible stocks in the index, only 8 stocks gave positive returns, while 88 stocks gave negative returns. Here are the top-15.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
UPL	630.15	14.44%	34.76%	658.25	430.58	46.35%	4.27%
SBICARD	834.60	10.17%	16.56%	872.00	647.95	28.81%	4.29%
SRF	2,795.55	4.90%	16.98%	2,983.90	2,089.10	33.82%	6.31%
ASHOKLEY	213.90	3.35%	25.33%	264.65	157.55	35.77%	19.18%
SUNDARMFIN	4,544.60	3.09%	8.83%	5,535.85	3,622.25	25.46%	17.91%
KALYANKJIL	468.55	3.02%	16.48%	795.40	336.05	39.43%	41.09%
SAIL	105.00	0.63%	-13.35%	175.35	99.15	5.90%	40.12%
M&MFIN	271.30	0.22%	-4.52%	343.00	246.20	10.19%	20.90%
PHOENIXLTD	1,537.05	-0.57%	-43.92%	2,068.50	1,215.40	26.46%	25.69%
NLCINDIA	205.00	-1.45%	-6.93%	311.80	186.03	10.20%	34.25%
EXIDEIND	347.95	-1.50%	8.59%	620.35	290.35	19.84%	43.91%
SONACOMS	490.50	-1.66%	-28.35%	768.65	475.05	3.25%	36.19%
IDFCFIRSTB	58.55	-2.39%	-27.96%	86.10	56.43	3.76%	32.00%
MUTHOOTFIN	2,129.40	-3.52%	63.59%	2,334.80	1,261.90	68.75%	8.80%
DIXON	14,000.00	-4.13%	108.50%	19,148.90	6,472.00	116.32%	26.89%

Data Source: NSE

In terms of sectoral mix; the top-15 had 5 BFSI stocks (SBI Cards, Sundaram Finance, M&M Finance, IDFC First Bank, and Muthoot Finance), 3 auto stocks (Ashok Leyland, Exide, and Sona), and 2 Chemical stocks (SRF Ltd and UPL Ltd). The worst performers in February 2025 were largely bottom-up plays, and included IGL, Mphasis, FACT, HUDCO, and TI India.

HOW MID-CAPS DELIVERED ON 1-YEAR RETURNS?

Mid cap stocks as a whole, delivered -0.87% in last one year. Out of 96 mid-cap stocks, only 1 stock more than doubled yoy, while 4 stocks gave over 50% returns. A total of 54 stocks gave negative returns yoy. Here are the top-15 on 1-year returns.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
DIXON	14,664.75	-16.72%	144.69%	19,148.90	6,051.10	142.35%	23.42%
BSE	5,387.00	-2.21%	112.80%	6,133.40	1,941.05	177.53%	12.17%
POLICYBZR	1,702.75	-18.52%	73.06%	2,246.90	852.00	99.85%	24.22%
COCHINSHIP	1,462.00	-2.21%	68.10%	2,979.45	713.35	104.95%	50.93%
MUTHOOTFIN	2,184.00	1.98%	65.98%	2,275.00	1,261.90	73.07%	4.00%
SOLARINDS	10,058.00	3.35%	60.75%	13,298.00	6,275.00	60.29%	24.36%
RVNL	431.40	11.26%	60.07%	647.00	213.05	102.49%	33.32%
INDUSTOWER	348.00	0.94%	58.54%	460.35	206.35	68.65%	24.41%
INDHOTEL	801.20	-12.47%	54.63%	894.90	486.95	64.53%	10.47%
KALYANKJIL	502.50	-35.15%	50.61%	795.40	321.95	56.08%	36.82%
HINDZINC	445.80	1.37%	41.89%	807.70	284.60	56.64%	44.81%
POLYCAB	5,856.00	-17.75%	41.60%	7,605.00	4,236.00	38.24%	23.00%
OFSS	8,899.00	-27.78%	41.58%	13,220.00	6,381.00	39.46%	32.69%
JUBLFOOD	739.05	-4.78%	40.25%	796.75	421.05	75.53%	7.24%
TORNTPOWER	1,401.90	-2.06%	39.15%	2,037.00	1,045.05	34.15%	31.18%

Data Source: NSE

On a yoy basis, the list was spread out across sectors, since it was more of a bottom up story for mid-caps. Some of the sectors included New Energy, EMS, financial inclusion, consumer services, telecom, and ecommerce. The list at the bottom was dominated by stocks like IGL, MRPL, Delhivery, Bharat Dynamics, Phoenix, Tata Tech, etc

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

In terms of bounce from the lows, the mid-caps overall bounced 5.79%. Total of 5 stocks more than doubled, and 10 jumped over 50%. Top-20 average bounce was 71.27%.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
PERSISTENT	5,906.65	-6.28%	-27.28%	6,788.90	1,965.50	200.52%	13.00%
BSE	5,387.00	-2.21%	112.80%	6,133.40	1,941.05	177.53%	12.17%
MAZDOCK	2,373.00	11.35%	11.81%	2,930.00	897.70	164.34%	19.01%
DIXON	14,664.75	-16.72%	144.69%	19,148.90	6,051.10	142.35%	23.42%
PAYTM	741.80	-21.45%	27.38%	1,062.95	310.00	139.29%	30.21%
COCHINSHIP	1,462.00	-2.21%	68.10%	2,979.45	713.35	104.95%	50.93%
RVNL	431.40	11.26%	60.07%	647.00	213.05	102.49%	33.32%
POLICYBZR	1,702.75	-18.52%	73.06%	2,246.90	852.00	99.85%	24.22%
COFORGE	8,070.00	-14.17%	33.94%	10,026.80	4,287.25	88.23%	19.52%
JUBLFOOD	739.05	-4.78%	40.25%	796.75	421.05	75.53%	7.24%
MUTHOOTFIN	2,184.00	1.98%	65.98%	2,275.00	1,261.90	73.07%	4.00%
INDUSTOWER	348.00	0.94%	58.54%	460.35	206.35	68.65%	24.41%
INDHOTEL	801.20	-12.47%	54.63%	894.90	486.95	64.53%	10.47%
BDL	1,276.00	15.11%	-23.42%	1,794.70	776.05	64.42%	28.90%
SUZLON	58.27	-10.96%	20.68%	86.04	35.50	64.14%	32.28%

Data Source: NSE

On resilience score, the list was dominated by 5 new age tech (Persistent, Dixon, Paytm, Policybazaar, and Coforge). There were also 4 PSUs in the list. The rest were spread out and largely synced with 1-year return rankings list. The list at the bottom included MRPL, Supreme Industries, Apollo Tyres, KPIT Tech, Tata Communications, and Oil India.

HOW CLOSE WERE MID-CAPS TO THE YEARLY HIGHS?

In terms of proximity to the peak, the index was just a good 21.36 % short of the peak. Total of 4 stocks are less than 10% to the peak while 62 stocks are over 30% from peak levels.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
SBICARD	829.60	14.81%	9.31%	833.50	647.95	28.03%	0.47%
SRF	2,829.90	27.07%	21.72%	2,895.00	2,089.10	35.46%	2.25%
UPL	599.20	20.63%	13.90%	617.80	430.58	39.16%	3.01%
MUTHOOTFIN	2,184.00	1.98%	65.98%	2,275.00	1,261.90	73.07%	4.00%
PAGEIND	46,501.00	-6.41%	20.83%	49,849.95	33,070.05	40.61%	6.72%
MARICO	686.25	4.14%	25.12%	736.90	486.30	41.12%	6.87%
JUBLFOOD	739.05	-4.78%	40.25%	796.75	421.05	75.53%	7.24%
BIOCON	371.05	-1.69%	34.30%	404.70	244.55	51.73%	8.31%
MAXHEALTH	1,116.20	-6.88%	32.14%	1,227.95	706.45	58.00%	9.10%
PATANJALI	1,806.95	0.82%	16.19%	1,992.20	1,169.95	54.45%	9.30%
INDHOTEL	801.20	-12.47%	54.63%	894.90	486.95	64.53%	10.47%
BSE	5,387.00	-2.21%	112.80%	6,133.40	1,941.05	177.53%	12.17%
PERSISTENT	5,906.65	-6.28%	-27.28%	6,788.90	1,965.50	200.52%	13.00%
APLAPOLLO	1,501.85	-4.79%	1.16%	1,728.95	1,305.00	15.08%	13.14%
MPHASIS	2,799.00	0.46%	10.30%	3,237.95	2,187.00	27.98%	13.56%

Data Source: NSE

In terms of proximity to the peak, the list is dominated by financials (SBI Cards, Muthoot Finance, and BSE), Healthcare (Biocon, Max Health, and Patanjali), IT (Persistent and Mphasis), and Chemicals (SRF and UPL). Companies farthest from the peak were stocks like Idea, MRPL, Cochin Shipyards, OIL, HUDCO, HZL etc. There was little evidence of alpha hunting in mid-caps; especially in the midst of this globally chaotic situation.