In bear markets when retails leave investing / the Euphoria is gone, will the P/E of Microcap and SME again go back to < 10 levels? Can the days come back when most small companies trade at P/S of < 4 ?
Will we ever get these risky Microcaps at decent valuation or has the viewpoint on SME & Microcap changed for a long time? With current valuation it seems that all of today’s microcap will be tomorrow’s Midcap. People have forgotten the advantages giant business have than these companies doing the same business in niche segment. Giants like large caps are going to take over the revenue just as Reliance did with Telecomm companies.
People are concerned about the valuation of PSU but the SME & Microcaps are the ones which need to get hit first.
Thoughts @vikasbargale ?
| Subscribe To Our Free Newsletter |
