Green shoots are becoming visible in India’s investment cycle, according to Kotak Mahindra Bank director Shanti Ekambaram. The government’s focus on infrastructure development has created opportunities for private sector capital expenditure. However, the RBI has tightened norms for unsecured consumer credit, prompting caution in the financial sector. Last month, the RBI revised norms for risk weights on certain consumer loans, affecting the capital adequacy ratio of banks.
The relentless investments by domestic investors have resulted in an unprecedented rally in smallcap stocks. However, some of these stocks are still trading below their 5-year average price-to-earnings ratio (P/E). Analyzing the valuation, we have shortlisted 10 multibaggers that are worth considering. Neuland Laboratories, Quick Heal Technologies, Welspun Enterprises, PTC India Financial Services, ITD Cementation India, Responsive Industries, Indraprastha Medical Corporation, Anant Raj Ltd, Capacit’e Infraprojects, and Mishtann Foods are the 10 shortlisted stocks with an annual turnover of over Rs 100 crore. This article provides insights into the financial performance of each of these stocks and the outlook for smallcap stocks in 2024.
