5 Midcap Stocks for Long Run with Strong Fundamentals

#2 Dixon Technologies

Next on the list is Dixon Technologies.

The company is one of India's leading Electronic Manufacturing Services (EMS) providers. It operates 24 manufacturing facilities across the country and has built a strong presence across consumer electronics, home appliances, lighting products, mobile phones, wearables, telecom, IT hardware, and other fast-growing segments.

As highlighted in its Q3 FY26 earnings call, Dixon has been selected as an ECMS beneficiary for camera modules and optical transceivers, marking an important step in its journey up the electronics value chain.

The company is also awaiting approvals for display modules and enclosures, as it steadily transitions from a pure-play assembler to a more integrated, design-led manufacturing partner across consumer, industrial, and strategic electronics.

Further, on the expansion front, Dixon is scaling capacity aggressively. A 4,000 sq. ft. facility under its 74:26 JV for smartphones and electronic devices is expected to commence operations by Q2 FY27. In Noida, a 1 million sq. ft. facility for key anchor customers is nearing completion, with commercial production expected from Q2 FY27.

The company's display module facility under its JV with HKC is also close to completion, initially catering to smartphones and notebooks, with further expansion planned into LED TVs.

At the same time, Dixon is sharply ramping up its smartphone camera module business, targeting an increase in annual capacity from 40 m units to nearly 190-200 m units.

It is also broadening its IT hardware portfolio, moving beyond notebooks into desktops, tablets, printers, AIOs, SSDs, memory modules, and servers through partnerships such as its JV with Inventec.

Additionally, according to IBEF data, India's electronics manufacturing sector is expected to grow significantly and could reach around USD 500 bn by 2030, providing a strong multi-year tailwind for companies like Dixon.

On the financial front, over the past five years the company's revenue has seen a growth of 54.6%, meanwhile, the net profit grew at CAGR of 59.2%

The company's five-year average ROE and ROCE stand at 25.2% and 34.7%.

Dixon Technologies' Financial Snapshot (FY21-25)

For more details, see the DIXON TECHNOLOGIES company fact sheet and quarterly results.

#3 Hero MotoCorp

Next on the list is Hero MotoCorp.

It is the world's largest manufacturer of motorcycles and scooters for 24 consecutive years.

Since its inception in 1984, we have sold over 124 m two wheelers across more than 48 countries, driving aspirations and progress worldwide.

Hero MotoCorp is heavily involved in the electric vehicle (EV) market. They are accelerating their presence in the EV space through their emerging mobility brand, VIDA.

According to the Q3 FY26 earnings call, the company continued to see steady momentum across key segments.

Further, the management highlighted that the company's investment-led growth strategy will continue, with sustained focus on premium motorcycles, scooters, EV expansion, global business, and customer experience initiatives under Hero 2.0 and Premia.

The company remains confident that the two-wheeler industry will continue its double-digit growth trajectory in the near term.

As per recent commentary shared on 6 May 2026 (Wednesday), the company has outlined a sharper focus on the government's Production Linked Incentive (PLI) scheme.

The management highlighted that EV PLI coverage currently extends to around 60% of the product portfolio, and the company is targeting to expand this coverage to nearly 90% in FY27. This expansion is expected to support cost efficiency and accelerate EV scale-up.

With its strong market share in the auto segment and growing presence in the booming EV sector, Hero MotoCorp emerges as a long-term stock to watch.

On the financial front, over the past five years the company's revenue has seen a growth of 6.9%, meanwhile, the net profit grew at CAGR of 3.6%

The company's five-year average ROE and ROCE stand at 18.9% and 25.8%.

Hero MotoCorp's Financial Snapshot (FY21-25)

#4 NMDC

Next on the list is NMDC.

NMDC is India's largest producer of iron ore under the Ministry of Steel, Government of India.

The company operates some of the country's most advanced iron ore mines in Chhattisgarh and Karnataka, along with South-East Asia's only mechanised diamond mine in Panna, Madhya Pradesh.

In the growth space, NMDC has been gradually expanding its rare earth exposure through its overseas arm, NMDC Global, particularly in Australia, according to annual report FY25.

Under this initiative, the company is involved in the East Kimberley Project, located about 350 kilometres south of Kununurra in Western Australia.

The project includes Koongie Park, Sophie Downs, Ruby Plains and Taylor Lookout tenements, which are known for prospective geology for base metals, gold, rare earth elements (REE) and tungsten mineralisation.

At present, the East Kimberley tenements remain in the early stages of exploration, with initial first-pass drilling already completed to assess base metal potential.

Adding to the long-term structural opportunity, the government approved a Rs 72.8 bn scheme in November 2025 to boost domestic manufacturing of rare earth permanent magnets.

The programme aims to build 6,000 metric tonnes per year of capacity for use in defence, renewable energy, EVs, and electronics.

As per a Press Information Bureau update dated 2 February 2026, the focus is also on strengthening industrial resilience and reducing dependence on global supply disruptions of critical materials.

NMDC's early-stage positioning in this ecosystem makes it a potential long-term stock to watch.

Over past five years, NMDC reported a revenue CAGR of about 15.4% and net profit CAGR of around 12.7%.

The company's three-year average ROE and ROCE stand at 28.3% and 39.7%.

NMDC's Financial Snapshot

For more details, see the NMDC company fact sheet and quarterly results.

#5 Suzlon Energy

Last on the list is Suzlon Energy.

Since 1995, Suzlon has played a key role in establishing India as the third-largest producer of wind energy globally.

From deploying its first wind turbine to becoming a cornerstone of a multi-billion-dollar industry, Suzlon has been central to India's wind energy journey.

Today, the company powers one in every three wind turbines installed in India and has built a strong international presence across 17 countries on six continents, positioning Indian wind technology as competitive even in mature global markets.

Suzlon is targeting a strong shift in its business mix, aiming to double its EPC share to 50% of its order book by FY28 from the current 20%.

The company is also proactively acquiring land in advance across six windy states to reduce project execution dependency on clients. Alongside this, Suzlon sees meaningful export opportunities emerging from FY28, supported by ongoing market mapping and cost analysis.

On the sustainability front, the company plans to power all 15 manufacturing facilities with 100% renewable energy by 2030 and has committed to achieving net-zero across its ecosystem by 2040.

With improving execution control, export potential, and a clear ESG roadmap, Suzlon is positioning itself as a long-term structural renewable energy play.

Over past five years, Suzlon reported a revenue CAGR of about 29.7%.

Suzlon Energy's Financial Snapshot

For more details, see the SUZLON ENERGY company fact sheet and quarterly results.

Conclusion

Midcap stocks can be a strong addition for long-term investors, but they are not a "must invest" category for everyone.

They typically offer higher growth potential than large caps because these companies are still expanding their market share, scaling operations, and benefiting from sectoral tailwinds.

However, this upside comes with higher volatility and sharper drawdowns during market corrections.

Going forward, midcaps tend to perform well when earnings growth is broad-based and liquidity in the market is supportive, but they can underperform during risk-off phases or macro uncertainty.

So, the key is not whether to invest or not, but how much to allocate based on risk appetite, time horizon, and portfolio balance.

However, investors should carefully evaluate these companies' fundamentals, corporate governance, and valuations as key factors when conducting due diligence before making investment decisions.

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