Whole Time Director Arihant Capital Markets
❝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.