Mumbai: While the small- and mid-cap segments of the stock market have witnessed substantial growth, Anupam Tiwari, Fund Manager at Groww Asset Management Company (AMC), believes that opportunities for outsized gains, or “screaming opportunities,” are now limited. However, he emphasizes that the space still offers a fair share of reasonably valued stocks for discerning investors.
Speaking about the market outlook, Tiwari noted that the rally in small- and mid-cap stocks has made valuations more aligned with their intrinsic growth potential. “The sharp run-up has reduced the extreme bargains, but there are still companies with strong fundamentals, scalable business models, and sustainable earnings growth available at fair prices,” he said.
Tiwari highlighted sectors like specialty chemicals, niche manufacturing, and financial services as areas where mid-cap and small-cap stocks are showing robust growth prospects. He also underscored the importance of focusing on companies with strong governance practices, a proven track record, and the ability to navigate economic uncertainties.
Market participants have seen a notable surge in interest in these segments, partly driven by retail investors. However, Tiwari advises caution, encouraging investors to adopt a long-term perspective and avoid getting swayed by short-term market trends.
Despite his tempered optimism, Tiwari remains confident in India’s broader economic growth and its ability to support the performance of small- and mid-cap companies over the medium to long term. “The overall outlook remains positive, but it’s important to be selective in this phase of the market,” he added.
Groww AMC has been actively managing funds in this space, focusing on quality over quantity. Tiwari’s remarks come as a timely reminder for investors navigating the evolving market landscape.