Mid cap refer to companies which have medium-sized capitalisation.
As per Sebi, the companies ranked 101-250 by way of market capitalisation are to be termed as mid-cap stocks. Mid-cap companies are established companies that operate in industries expected to experience rapid growth and yet to reach optimum potential.
Mid-cap companies are generally in the process of expanding and scaling up.
Mid cap companies’ stocks are riskier than those of large-cap companies because they are not as established or have as strong fundamentals as large caps.