These smallcap and midcap stocks can earn big money, see full list

Generally, in a volatile market, investors are advised to stay away from midcap and smallcap stocks. The reason for this is that large companies have the ability to tolerate market fluctuations, while smallcap and midcap stocks break up soon.

However, shares of some midcap and smallcap companies seem to be in a better position to deal with the slowdown. These companies have an edge in many respects. Good market share, solid balance sheet, consistent cash flow, good capital allocation and the possibility of recovery make them different.

Aditya Narain, Head of Research, Edelweiss Securities, said, "This is an opportunity for companies in their category in decades. They can further strengthen their hold and influence. Companies that perform better in times of low growth are paying premiums." But you can do business. "

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The list of companies that have met these four parameters include Indraprastha Gas, Voltas, Vinati Organics, Exide Industries, AIA Engineering, Bata, PI Industries, TCI Express.Analysts believe that despite the small size, their position is quite strong in their sectors.

Samir Rach, fund manager at Nippon India AMC, said, "India's manufacturing theme has not benefited investors, but it has the potential to make big bucks for midcap and smallcap investors. The recent fall has pushed these stock prices down significantly." And are a great option for long-term investment. "

ET has brought in 20 midcap and smallcap stocks based on analysts' opinions, which are strong based on market cap and cash flow. The returns on capital empires of these companies have been above 15 per cent and the PE ratio is below their five-year average:

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