7 smallcaps with upside potential of up to 54% to bet in 2026. How many do you own?
After a bruising 2025 that saw the smallcap index slip nearly 6% and underperforming Nifty, investor sentiment around the segment has remained cautious. However, looking ahead to 2026, Axis Securities believes select opportunities are emerging across the smallcap space. In a recent report, the brokerage has identified seven smallcap stocks spanning utilities, financials and consumer discretionary that could offer value and potentially deliver returns of up to 54% over the next year. Here’s the full list.
Written by
, ETMarkets.com|
Jan 03, 2026, 11:40:43 AM IST
1/8
Value Buys
After a bruising 2025 that saw the smallcap index slip nearly 6% and underperforming Nifty, investor sentiment around the segment has remained cautious. However, looking ahead to 2026, Axis Securities believes select opportunities are emerging across the smallcap space. In a recent report, the brokerage has identified seven smallcap stocks spanning utilities, financials and consumer discretionary that could offer value and potentially deliver returns of up to 54% over the next year. Here’s the full list.
ETMarkets.com
2/8
Inox Wind
With a target price of Rs 190 per share, the brokerage implies an upside potential of 54% from current market levels. Backed by the INOXGFL Group, IWL benefits from synergies across wind, solar, hybrid, and BESS segments, while its credit profile has been further reinforced by rating upgrades and improved financials.
ETMarkets.com
3/8
Kirloskar Brother
With a target price of Rs 2,330, the brokerage implies an upside of 45% from current labels. Axis said the company’s strong order book, diversified operations, and strong execution record indicate very strong growth prospects in H2FY26 and FY27.
ETMarkets.com
4/8
Mahanagar Gas
The brokerage says the stock can rise 36% and has set a price target of Rs 1,540. The company has stepped up capex from FY22 onwards, reaching Rs 1,000 crore in FY25 and guided for higher capex of Rs 1,100-1,300 crore at least for the next couple of years. This bodes well for the company, it said.
ETMarkets.com
5/8
Chalet Hotels
With a price target of Rs 1,120, the brokerage implies an upside of 29% from current market levels. It has planned a Rs 2,000 crore capex for its announced projects by FY27, largely funded through internal accruals. The management targets to maintain a prudent leverage profile of around 3.5x EBITDA.
