Analyst Gautam Duggad Says Midcap Stocks Now Look Good

Gautam Duggad, an analyst, has shared new thoughts on midcap stocks. He now thinks they are a good chance to buy, even with market ups and downs. This is different from what he said a few months ago. He also likes stocks in areas like shopping, defense, and government companies.
By Newsroom | Finance, India |

Recent statements from Gautam Duggad, an analyst at Motilal Oswal, present a nuanced view on the market, particularly concerning midcap stocks. While some reports suggest midcaps offer attractive opportunities amid volatility, other analyses from earlier in 2025 indicated that these same stocks remained "pricey even after correction." This divergence in perspective, appearing within a relatively short timeframe, requires careful examination to understand the evolving market dynamics and Duggad's current strategic outlook.

Market Environment and Expert Commentary

The market has experienced notable volatility, a factor frequently cited in financial analysis. Amidst this, Gautam Duggad has shared insights into his investment strategy. The core of the discussion revolves around the perceived value and risk associated with midcap stocks.

Key Observations:

  • Conflicting Signals: Reports published days apart present seemingly contradictory views on midcap valuations.

  • Volatility as a Constant: The market's inherent instability is a backdrop against which investment decisions are being made.

  • Expert Focus: Duggad's commentary, specifically from Motilal Oswal, points to potential opportunities and strategic bets.

Shifting Perspectives on Midcap Attractiveness

A recent article from The Economic Times quotes Gautam Duggad stating that midcaps offer attractive opportunities amid volatility. This suggests a current assessment where the benefits of investing in midcap companies are seen to outweigh the risks, even in an uncertain market. This perspective implies a belief in the resilience and growth potential of this segment of the market.

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However, a review of earlier statements from CNBC TV18 dating back to February 24, 2025, reveals a different assessment. In that context, Duggad is reported to have said that mid and small caps remain pricey even after correction. This earlier view highlights a concern that valuations might still be too high, even after a market downturn, implying a need for greater caution.

  • Recent Assessment: Midcaps are currently viewed as offering attractive investment opportunities.

  • Earlier Assessment: Midcaps were considered overpriced despite a market correction.

  • Discrepancy: The change in tone suggests a reassessment of the market or specific conditions affecting midcap stocks.

Duggad's Strategic Bets and Sector Focus

Beyond general market sentiment, Duggad has outlined specific sectors where he sees potential. Reports from July 8, 2025, indicate that his playbook for FY26 includes bets on discretionary consumption, midcaps, and defense. This provides a more granular understanding of where he believes value can be found.

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Further details, referenced from sources like AOL and NDTV Profit, suggest an interest in PSUs (Public Sector Undertakings) and midcaps. The rationale behind these bets often involves specific growth drivers or undervaluation within these sectors.

  • FY26 Outlook: Focus on discretionary spending, midcap growth, and the defense industry.

  • Specific Holdings: Potential investments in PSU stocks are also highlighted.

  • Underlying Rationale: The "why" behind these sector preferences is crucial for understanding the investment thesis.

Expert Analysis: Interpreting Valuation Signals

The seemingly contradictory statements on midcap valuations prompt an analytical approach. Is the market fundamentally different now compared to early 2025? Have specific events or data points altered the risk-reward calculus for midcap investments?

  • Valuation Metrics: How have key valuation indicators for midcap stocks evolved between the earlier and later statements?

  • Economic Factors: What broader economic shifts might influence the attractiveness of midcap companies?

  • Sectoral Performance: Have specific industry trends within the midcap space changed, making some more appealing than others?

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Without access to the full content of the CNBC TV18 and AOL/NDTV Profit articles, a definitive reconciliation of these perspectives remains incomplete. However, the recent statement emphasizing attractive opportunities suggests that either valuations have become more favorable, or specific growth catalysts have emerged that, in Duggad's view, now justify investment despite underlying market volatility.

Conclusion: Navigating Market Nuances

The commentary from Gautam Duggad underscores the dynamic nature of investment markets. While an earlier assessment flagged midcaps as potentially overpriced, a more recent outlook suggests they present attractive opportunities amidst ongoing volatility. This shift in perspective highlights the importance of continuous market analysis and the potential for evolving valuations. Duggad's specific sector bets in discretionary consumption, defense, and PSUs offer further clues into his investment strategy for the upcoming fiscal year. The ability to synthesize these differing viewpoints is essential for investors seeking to navigate the current market landscape.

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  • Key Finding: Midcap valuations are subject to dynamic assessment, shifting from "pricey" to "attractive" within months.

  • Strategic Focus: Investment decisions appear to be guided by sector-specific growth narratives in discretionary, defense, and PSU domains.

  • Implied Action: Investors are encouraged to reassess midcap opportunities with a keen eye on current market conditions and Duggad's evolving rationale.

Sources

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Frequently Asked Questions

Q: What did Gautam Duggad say about midcap stocks recently?
He recently said that midcap stocks now offer good chances for people to buy them, even though the market is changing a lot.
Q: Did he always think this way about midcap stocks?
No, earlier in 2025, he said that midcap stocks were still too costly even after prices went down.
Q: What other types of stocks does he like?
He also likes stocks in areas like shopping for things people want, defense companies, and government-owned companies (PSUs).
Q: Why is his opinion changing?
His opinion might be changing because the market is always moving, and new information can make stocks look more or less attractive.