🔷️The Rise of Smallcap & Midcap stocks Seems to be the flavour for next two to three years.
🔷️It has been almost Two years since Jan 2018 midcaps & Smallcaps have underperformed Broader market and have given huge pain for investor and Traders.But slowly Tide is turning in favours of Midcaps and Smallcap stocks.
🔷️It has been seen that smart money slowly getting Shifted To Quality Midcap and Smallcap stocks.
🔷️One should Look into Only Quality stocks where there is no corporate Governance issues,Quality Management & Sound Fundamental Track Record.
🔷️This can be just a start of pre budget Rally in small and Midcaps stocks.Low valuation and hope of economic getting picking up in next 2 to 4 qtrs.
🔷️In last 12 months Nifty PE has Increased from 26 times to 29 times.While Smallcap PE has Reduced from 56× To 23 Times and Smallcap PE has also reduced from 42x To 25 Times.
🔷️VALUATION IN MIDCAP & SMALLCAP HAVE CAME TO COMFORTABLE LEVEL COMPARED TO LAST 12 TO 24 MONTHS.
🔷️Still many Good Quality midcap and Smallcap are Trading 50% To 70% Discount from there all time Highs.
🔷️If Budget Gives good reforms and better Growth visiblility we can see good UPMOVE in MIDCAPS and SMALLCAP index and even in INDIVIDUAL Theme Driven stocks too.
🔷️We@wealthcreatures firmly believe that from second half of this year we can see Strong Rally in midcap and SMALLCAP space.This can be last and very good OPPORTUNITY to add Quality stocks for investment for next 2 to 3 years.
Huge money can be made in next 2 to 4 years by investing in Quality stocks.
Disc – All views expressed are personal and only for Educational and study purpose. Consult your financial advisor before investing or taking any position based on above article.