5 smallcap stocks with upside potential of up to 32%. How many do you have?

Axis Securities has raised its December 2026 Nifty target to 27,360 as it remains constructive on Indian equities, supported by strong macroeconomic fundamentals, sustained government capital expenditure, GST 2.0 reforms and an improving corporate earnings cycle. Axis expects Nifty earnings to grow at a 13% CAGR over FY23-FY28, which it believes will underpin healthy medium-term market returns. Here are five small- and midcap stocks that the brokerage is bullish on.

Axis has assigned a target price of Rs 1,000, implying an upside of 11% from current market levels. Chalet Hotels is a leading owner, developer and asset manager of high-end hotels in India, primarily operating in key metro cities such as Mumbai, Hyderabad, Bengaluru and Pune. Its portfolio comprises luxury and upper-upscale hotels managed by renowned global brands such as Marriott, Westin and Four Points.

With a target price of Rs 820, the brokerage forecasts an upside potential of 12.2% from current levels. Healthcare Global Enterprises has positioned itself as a leading pure-play oncology company in India, with a network of nearly 22 Comprehensive Cancer Centers (CCCs) and dedicated infusion facilities across the country.

The company has a target price of Rs 815, implying an upside of 14% from the previous close. Minda Corporation is a technology-driven manufacturer of automotive components and systems for domestic and global original equipment manufacturers (OEMs). It is the flagship company of the Spark Minda Group and a leading supplier of mechatronic products, wiring harnesses and vehicle access systems.

The brokerage has assigned a target price of Rs 280, implying an upside of about 22% from current levels. City Union Bank has evolved from its regional roots into a pan-India franchise with more than 1,000 branches, while retaining a strong presence in Tamil Nadu. The bank follows a granular, collateral-backed lending model, with MSMEs as its core focus, complemented by gold, agriculture, retail and other business loans.

With a target price of Rs 1,425, the brokerage forecasts an upside of 32% from current levels. Axis remains constructive on CCL Products’ long-term growth prospects, supported by strong customer demand, a healthy order pipeline, new client additions, expanding branded sales and ongoing capacity expansion.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)