Stocks to Watch: PVR Inox, Maruti, ITC, SBI, Power Grid, Lupin, and Others
Stocks to watch: Shares of firms like PVR Inox, Maruti, ITC, SBI, Power Grid, Lupin, and others will be in focus on Tuesday's trade.
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Stocks to watch: Shares of firms like PVR Inox, Maruti, ITC, SBI, Power Grid, Lupin, and others will be in focus on Tuesday's trade.
Notwithstanding the risk involved, analysts are upbeat on micro-cap investing as India remains in a firm bull market. Moreover, these stocks are available at relatively cheaper valuations compared to large, mid and small caps, assuring alpha returns. With a market-capitalisation (market-cap) of up to Rs 10,000 crore, micro-cap stocks are outside the purview of Nifty 500 stocks, and are ranked from 501 to 750 in the market-cap ladder.
Small-cap stocks can prove multi-baggers as the upside potential is high, but so are the risks
The brokerage recommended a handful of stocks in the microcap universe such as Wonderla Holidays, Somany Ceramics, Greenpanel, Sansera Engineering, Fusion Micro Finance, Repco Home Finance, Nazara Tech, Tatva Chintan, Astra Microwave, Kewal Kiran and Gokaldas Exports.
Earlier instances of bull markets in broader equities have seen microcap earnings yield spread over largecaps drop to near-zero versus current spread of 150-200 bps