My two cents on Small caps investing based on last 2 years of experience :
- String Industry tailwind – mostly India structural story based tailwinds
- If possible , look for monopoly / oligopoly sectors
- Good track of Business scale up in last 10 years from micro to small cap journey
- Capex lined up in next 2-3 years
- Low debt preferable
6.Valuaation cap at 20 PE . Exceptional cases can be looked for 35-40 PE maximum. - Weekly Chart should not be too discouraging
- Last but the most important point – a portfolio of atleast 25 to 30 stocks to diversify company’s specific risk
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