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Small-caps Expected to Deliver 30 Percent Earnings Growth: ICICI Securities
M
Moneycontrol•08-10-2026, 11:20
Small-caps Expected to Deliver 30 Percent Earnings Growth: ICICI Securities
- •Small-cap stocks are projected to achieve over 30 percent earnings growth, outperforming large-caps and mid-caps driven by a shift in domestic investment flows.
- •Kotak Mahindra Bank is highlighted as the top tier-1 lender due to strong advances growth of 25 percent and attractive valuations.
- •Gold loan segments within NBFCs are anticipated to grow by 40 percent, with top picks including Muthoot Finance and Capri Global.
- •Consumption and premiumisation themes remain resilient against inflation, benefiting companies like LG Electronics, Hyundai, and M&M during the festive season.
- •The healthcare sector, particularly hospitals and dialysis providers like Nephroplus, shows strong long-term growth potential amidst capacity expansions.
Key Questions Answered
Small-cap stocks are expected to deliver earnings growth of over 30 percent, significantly outpacing large-caps projected at 15 to 16 percent and mid-caps at 24 to 25 percent.
Kotak Bank is highlighted as the best-placed tier-1 lender due to its strong 25 percent advances growth and attractive valuation relative to Axis Bank.
The premium consumption segment is expected to thrive during the festive season, with companies in watches growing at around 30 percent alongside firms like LG Electronics, Redington, Hyundai, M&M, ABDL, and Phoenix Mills.
