Picking Small-Caps At Big Values

With all the segments of stocks heading northwards these days, the broader market comprising mid and small cap stocks has seen a much swifter run-up in prices compared to their large cap peers. Small-Cap Stock Picking Several professional investors generate large wealth by unearthing small and mid-cap stock ideas. In a company’s journey to becoming a large corporation, the investors’ wealth is created. This journey through the value cycle is challenging to say the least. To maximise the odds of discovering such future large caps, an investor must zero in not only a strong business model and management capability but also on the benefits that can accrue from sectoral tailwinds. The Tailwinds In the recent past, massive wealth creation has happened for investors in sectors such as chemicals which have been the beneficiary of the China+1 strategy being followed by several...