Small & Mid-Cap Stocks’ Picks for the Digital Future
India’s digital economy is expanding rapidly and at the core of this growth is the rising demand for data centers. As cloud computing, AI adoption, and digital services continue to surge, companies building and enabling data infrastructure are becoming highly attractive investment opportunities. Smart investors are already chasing down data center stocks.

This blog covers 10 data center focused stocks that are drawing the attention of Indian value investors looking for long-term wealth creation.
Latest Price & Market Cap Data (as of July 11, 2025)
Company | Share Price (₹) | Market Cap (₹ Cr) | P/E Ratio |
E2E Networks Ltd. | 2,503 | 4,998 | 105× |
Netweb Technologies | 1,947 | 11,033 | 96× |
Aurionpro Solutions | 1,611 | 8,895 | 48× |
Allied Digital Services | 178 | 1,005 | 31× |
Black Box Ltd. | 525 | 8,893 | 33× |
Orient Technologies | 345 | 1,438 | 28x |
Techno Electric & Engineering | 1,598 | 18,587 | 49× |
Marine Electricals (India) | 201 | 2,779 | 73× |
Anant Raj Ltd. | 561 | 19,267 | 45x |
Kirloskar Oil Engines | 915 | 13289 | 29x |
Why These Stocks Matter for Value-Oriented Portfolios
Each of these companies is directly or indirectly contributing to India’s data infrastructure boom – by powering, securing, or managing data center assets. For value investors, these businesses offer high-growth potential backed by real infrastructure and increasing demand.
Let’s break down some of the key stocks picks:
- Focus: Cloud computing infrastructure for businesses and startups.
- Why It Matters: A rare pure-play Indian company offering domestic cloud services, with strong growth in AI and compute demand.
- Value Investor Insight: A niche digital infrastructure play with high margins, strong scalability, and early-mover advantage in India’s cloud sector.
- Focus: High-performance computing hardware.
- Why It Matters: Supplies the backbone of India’s data centers, making it a high-conviction bet for infrastructure-led growth.
- Value Investor Insight: Strong fundamentals and order book growth position it as a futuristic industrial-tech stock with multiyear tailwinds.
- Focus: Cybersecurity, enterprise software, and data center consulting.
- Why It Matters: Combines fintech, infrastructure, and security solutions — a diversified long-term play.
- Value Investor Insight: A multi-vertical business with consistent growth — ideal for investors seeking tech exposure with visible earnings.
- Focus: IT automation, data center setup, and support.
- Why It Matters: Offers digital infrastructure transformation solutions – attractive to institutional clients.
- Value Investor Insight: A turnaround small-cap with improving balance sheet and relevance in smart infra projects – suitable for patient, value-driven investors.
- Focus: Enterprise networks and secure infrastructure.
- Why It Matters: With a global presence and domestic expansion, it’s positioning itself as a critical enabler of smart infrastructure.
- Value Investor Insight: Global presence, improving margins, and niche services make it an attractive long-term pick in India’s digital infra ecosystem.
- Focus: Power and electrical solutions for industrial and data infra.
- Why It Matters: A strong, stable mid-cap player with ESG appeal and government project exposure.
- Value Investor Insight: Stable margins, strong order book, and clean energy exposure make it a top pick for steady compounding.
- Focus: Electricals for marine, industrial, and data center projects.
- Why It Matters: Well-diversified within smart infra and offers long-term compounding potential.
- Value Investor Insight: A diversified electrical company with growing data center relevance – suitable for investors seeking value in industrial-tech convergence.
- Focus: On-premise data center design and system integration.
- Why It Matters: Plays a crucial backend role in digital infra delivery to enterprises.
- Value Investor Insight: A lesser-known but promising systems integrator ideal for investors identifying undervalued digital infrastructure providers.
- Focus: Real estate development with a growing portfolio of data center parks.
- Why It Matters: Anant Raj is transforming its land banks in NCR (especially in Gurugram) into large-scale data center campuses tapping into the real estate backbone of India’s digital infrastructure. With major global and domestic clients showing interest in its dedicated data zones, the company is poised to benefit from the rising need for localized storage and secure hosting environments.
- Value Investor Insight: Combines real estate assets with digital infrastructure making it a hybrid long-term asset play.
- Focus: Manufacturing power backup systems, diesel generators, and energy solutions.
- Why It Matters: Data centers demand uninterrupted, 24×7 power, and Kirloskar is a leading supplier of mission-critical backup energy systems. As the number of data centers grow, the need for dependable power infrastructure surges directly supporting Kirloskar’s long-term revenue stream. The company’s pan-India presence and industrial-grade reputation make it a solid defensive pick in the digital infra value chain – data center stocks.
- Value Investor Insight: A strong cash-generating business with legacy clients, steady dividends, and a place in India’s core energy supply for infra.
Investment Strategy for Indian Value Investors
- Diversify: Don’t bet on just one company, allocate across 3–5 stocks based on your conviction.
- Track Fundamentals: Look beyond price and study quarterly earnings, debt levels, and order books.
- Use SIPs: Accumulate quality stocks gradually to average out volatility.
- Watch Government Policies: Infra push, PLI schemes, and cloud/digital initiatives may drive demand further.
⚠️ Risks to Consider
Risk | Description |
High Valuation Multiples | Several stocks are trading at 40–100× P/E – growth expectations are priced in. |
Regulatory Dependencies | Infra and tech companies can be impacted by policy changes or delays. |
Competitive Disruption | Global tech giants could pressure domestic players. |
Capital-Intensive Nature | Most businesses require continuous reinvestment to stay relevant. |
🏁 Final Words: Should You Invest?
India’s data revolution is just getting started, and these small to mid-cap companies are playing a key role in enabling it. For long-term Indian investors with a value mindset, this sector offers a strong blend of fundamentals, future demand, and innovation.
Whether you’re investing small amount or building a diversified digital infra basket, these data center stocks are worth serious consideration in 2025 and beyond.
📌 Pro Tip: Keep an eye on management commentary and institutional buying patterns. That’s often where the smart money moves first.
What about JIO?