Key Points
While the desire to own small caps is high, it is very important to manage the risks of investing in them, they may either give very high returns or just make your capital under perform significantly..
For enthusiasts and steadfast supporters of small-cap stocks, the key lies in a thorough examination of a company's fundamentals before making any investment decisions..
The management team's competence, integrity, and vision are pivotal in steering the company towards growth and navigating challenges..
Meanwhile, the sector's potential for growth and resilience against economic fluctuations can significantly influence a company's performance...
The small-cap segment of the market might seem like an attractive avenue for quick gains, yet it's important to recognize that it comes with significant challenges..
You might be interested in
The crux of growth stocks vs value stocks
29, Jul, 23Hence, generally, they provide a low dividend payout. Given the high growth outlook, they are in high demand and trade at a high valuation, like Price/Earnings Per Share (P/E), which may be substantially higher than the market and peers range.
6 smallcap stocks with high ROE & consistent return on capital employed
01, Apr, 23Investing in small cap stocks is one of the toughest challenges for any investor. However, if an investor gets his decision right, the returns on investment on getting (ROI) are high. ET screener powered by Refinitiv’s Stock Report Plus lists down stocks from small cap space with high upside potential over the next 12 months, having an average recommendation rating of “Buy” or Strong Buy and also meeting some parameters like net margins and return on equity.
Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 32%
03, Feb, 24After a short rational correction, bulls were once again seen on every corner of the street. While being bullish, it is extremely important not to forget the fact valuations are high and everything seems to be priced to perfection. In such conditions, for investors who are looking to increase their exposure to stocks, it would be better to focus on fundamentals and if there is any improvement in them which has made the overall score go up in the last one month then have a look at those stocks. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.
Add quantitative checks to avoid mistakes: 5 smallcap stocks with upside potential of up to 52%
02, Nov, 23While it is a well known fact that small caps as a segment are more prone to risks of sharp decline. However, the reality is that when small caps are doing well, all the caution is thrown out of the window. The reason is, small gains also tend to gain very sharply in a short period of time and that is what makes them attractive to investors. Given the valuations, at this point of time, it would be logical that investors should put more checks and balances while navigating the small cap space. Also beware of rude shocks which this segment of the market may witness given the fact there are more headwinds ahead.ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.
Nifty 50 expected to deliver 16% earnings growth in 2024-25, small cap likely to outperform: Report
21, Mar, 24Looking ahead, the report said that Nifty50 is expected to deliver 16% earnings growth in 2024-25 and Nifty large cap 100 is expected to register similar earnings growth.
Growth at reasonable price stock strategy: 10 GARP stocks with up to 52% price potential
27, Mar, 23Growth at reasonable prices (GARP) could be a helpful strategy to adopt in this market environment.
Long term wealth creation: Looking at basics makes the difference
30, Apr, 23Every industry has different operating conditions which have high correlation with the kind of ROE they generate and how sustainable that number is. Of all the stocks, which our algorithms come up with, we took companies from three sectors, biologics, engineering and an auto ancillary company which is focussed on EV space and has been able to get an early lead. ET screener powered by Refinitiv’s Stock Report Plus lists down stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy .
Nifty IT index stocks: Hold recommendations galore; will analysts be right?
17, May, 23Gone are the days, when a single company was considered a bellwether for IT sector stock. Today, whether it is a large or mid sized company, all have different focus areas and hence their quarterly results tend to differ from one another. Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores.