Sometimes not having any 'Buy' or 'Sell' recommendation is a good thing: 4 smallcap stocks with a top score of 10
Synopsis
For many, it might come as a surprise but the fact is the large-cap segment of the Indian equity market is one of the most over-researched. There are some companies that are being covered by more than 60 analysts. But at the same time, there is another set of companies, specially small companies which are not covered at all by single analysts and hence they don't have recommendations of either buy or sell. Instead of looking at companies that have buy or sell recommendations, we look at companies where on quantitative analysis parameters the score is coming at the highest possible level “10” but there was no recommendation of either a buy or sell. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks that fulfill the various criteria as specified into the algorithms & filters to find those that might help navigate the stock market.
While it is a well known fact that small caps as a segment are more prone to risks of sharp decline. However, the reality is that when small caps are doing well, all the caution is thrown out of the window. The reason is, small gains also tend to gain very sharply in a short period of time and that is what makes them attractive to investors. Given the valuations, at this point of time, it would be logical that investors should put more checks
ETMarkets.com
10 mins read
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