Anita Gandhi

Whole Time Di­rec­tor Ari­hant Cap­i­tal Mar­kets

Dalal Street Investment Journal - - COVER STORY -

❝Small cap com­pa­nies have po­ten­tial to grow faster than the aver­age growth of large com­pa­nies as their base is small. As they en­joy higher growth, they gen­er­ally en­joy higher val­u­a­tions and, there­fore, hav­ing pos­si­bil­ity of of­fer­ing mul­ti­ple re­turns. In early 90s Hero Mo­tor­corp (Hero Honda then) was also small­cap com­pany and over a pe­riod 2/3 decades it has be­come large cap com­pany and has re­warded in­vestors mul­ti­fold. There are many such small cap com­pa­nies that have emerged as large caps and have given con­sis­tent re­turns to the share­hold­ers. How­ever, re­tail in­vestor should keep in mind that they should in­vest only in those small-cap com­pa­nies that have good man­age­ment and are hav­ing good cor­po­rate gover­nance pol­icy.

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