These 3 smallcaps that stood up to bears have 'strong buy' & 'buy' ratings & upside scope of up to 59%

The recent performance of small caps has brought them in the category of stocks where the desire to own them is “highest”. But the fact which gets ignored in such conditions is that “risks” are also at the highest. The reason, valuation across the board are expensive and corrections in small caps are probably the most brutal ones. Just jog your memory back to October 2021. For all those who still want to take exposure to them, in such times, it would be better to be cautious in selecting the stocks, better to go with buying in smaller quantities and buy stocks where the underlying business has good macro fundamentals. Refinitiv’s Stock Report Plus which lists stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy .

When investing in small caps, there are two challenges which investors face. First, finding the right stock and second when the stock does not perform for some period of time, holding it in the portfolio. When investing in small caps one should be aware that they are the riskiest place to take espouse when it comes to equity, so the holding period of that stock might get extended due to overall market conditions. So a space with the highest risk and highest reward. 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.

When valuations are high but sentiments are bullish, it would be better to add the word “ caution” to your portfolio. Now how does one do it ? By putting some quantitative parameters when making a decision to buy a stock. Refinitiv’s Stock Report Plus which lists stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy .

Last four weeks, words like “ below estimates' 'have been heard on the Street multiple times. Given that valuations are not very cheap, any disappointment in the quarterly numbers has brought in corrections in the stock prices. Also given the fresh headwinds which have emerged in the global markets, right from the US banking sector to continued slowdown in China. focus might once again shift to large caps. ET screener powered by Refinitiv’s Stock Report Plus lists stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy

These small cap companies have shown positive returns in the last one month at a time when markets have been overwhelmed by news and other developments. 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 of “buy” or strong buy .

In a period where small-cap stocks underperformed significantly, leading to a situation where large investors were calculating their losses in their small-cap holdings, there would be a group of steadfast enthusiasts who continue to see potential in small caps. Investing in these stocks, even amidst turmoil, can be sensible for those prepared to maintain their investment for three to five years. However, it's crucial to recognize the distinction between high-quality and poor-quality businesses across the small, mid, and large-cap spectrums, as well as the difference between the intrinsic value of a stock and the overall value of the company. Certain niche small businesses may still generate significant returns over time if they are held long enough. On the other hand, if one's approach to small-cap investments is merely based on the absolute value of a stock with hopes of a tenfold increase, then it's a misconception. Stock market investing, whether in small, mid, or large caps, should not be driven by unrealistic expectations; otherwise, it leads to nothing but undue stress, rather than substantial returns.

As the mid-cap once again make a comeback, it is time to keep some check and balance while participating in this phase of the rally. The reason is the valuations are not cheap and any correction will lead to sharp correction in individual stock prices. So look for stocks where the return on capital employed and other parameters are good enough to ensure that small disturbances dont impact them much in terms of business.Stocks from sectors like small finance banks, FMCG and small private banks are on the list. 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.

While large cement companies might be in the news for one or the other reason, it is the small and midcaps which have shown better than expected performance in Q4. Some of them tend to get ignored because they are regional companies or their overall capacity is not very high. However, from the stock market perspective one has to look at the overall picture. We take a look at what analysts are saying across midcap cement companies. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists down stocks which fulfill the various criteria as specified into the algorithms & filters