Search
+
Invest with Confidence. Lead with Insights.
  • Drench in the knowledge with exclusive insights, ePaper & smart market tools with ETPrime.

Investing

The lure of small-cap multibaggers: what separates the winners from losers is accounting quality

The lure of small-cap multibaggers: what separates the winners from losers is accounting quality
The lure of small-cap multibaggers: what separates the winners from losers is accounting quality
Getty Images

Synopsis

Indian equities are in a strong bull market. The benchmark indices have staged a smart comeback after hitting multi-year lows in March 2020 amid the pandemic breakout. And once again, the market buzz around potential multibaggers in the small-cap universe is growing louder. This makes a reality check of companies’ accounting standards the need of the hour.

Seven years had passed since the bloodbath in equities triggered by the US sub-prime crisis, and India’s benchmark indices had bounced back from multi-year lows. But still, investors were a little apprehensive. Blue-chip stocks had seemed to have lost their momentum, with the benchmark indices taking a breather after a sharp rally in the previous year. But small-caps and mid-caps were racing ahead, rewarding investors with manifold returns. The
  • FONT SIZE
  • SAVE
  • PRINT
  • COMMENT
New Feature Refer & Earn
ET

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

The Economic Times