Pankaj Tibrewal, Senior VP & Equity Fund Manager, Kotak Mutual Fund is of the belief that although the valuations in the smallcaps and midcaps in the near-term are much above the long-term averages and a correction could be warranted but from 3-5 years perspective, the space looks very attractive.
There are many companies in this group that have the potential to scale up in a span of 3-5 years, he says. Moreover, market is not bothered whether it is a smallcap, midcap or a micro-cap, it only looks at the predictability of earnings, the earnings potential of the company and management's ability scale up and the ability of the company to grow in size.
