Smallcaps soar Rs 75 lakh crore in value over 7 years, growing 5x: Study

Smallcaps Grow 5x in Value Over 7 Years: A recent study by Bajaj Finserv AMC revealed that India's smallcap stocks have added a staggering ₹75 lakh crore in market value over the past seven calendar years, growing fivefold from ₹17 lakh crore in 2017 to ₹92 lakh crore by the end of 2024. This remarkable performance, marked by a Compound Annual Growth Rate (CAGR) of 27.6%, highlights the sector's resilience and growing investor appetite for high-growth opportunities, with small caps outpacing large and mid caps. The study also noted that the contribution of small-cap companies to total market capitalization and corporate profits has significantly increased, with 74% of the top 250 small-cap companies reporting a double-digit Return on Capital Employed (ROCE). However, concerns about valuation bubbles persist, emphasizing the importance of focusing on quality smallcap stocks for long-term investment.