Stories
Unlocking India's Small-Cap Growth Potential
- •An exclusive conversation with Vikas Khemani, Manoj Baheti, and Swati Khemani explores the current landscape of small-cap valuations in India.
- •The discussion highlights where the next phase of wealth creation and multibagger stocks might emerge.
- •Insights are shared regarding Carnelian's core investment philosophy and its future mutual fund ambitions.
Key Questions Answered
Domestic, non-financial large-cap companies trade at a median 42 times estimated FY27 earnings, compared to 30 times for small caps. Small caps also derive 59% of their profits from India's domestic economy, versus 32% for large caps, offering better value for domestic growth.
Carnelian Mutual Fund filed draft scheme documents with SEBI for the open-ended Carnelian Small Cap Fund, which will be benchmarked against the Nifty SmallCap 250 TRI. Managed by Deepak Malik and Viraj Parekh, the fund requires no lock-in and will offer continuous purchase and redemption after the NFO at Rs 10 per unit.
According to Vikas Khemani, recent free trade agreements and a weaker rupee create fresh opportunities for both exports and import substitution, providing a multiplier impact that significantly benefits Indian manufacturers.
