Ambit Asset Management says India's small-cap segment now offers a better risk-reward balance, with earnings growth accelerating, valuations resetting, and capital expenditure and liquidity turning supportive. The correction since early 2025 was mainly a valuation adjustment, unlike past structural disruptions. Small-cap earnings have improved, with Nifty Smallcap 250 PAT up 27% year-on-year as of June 2026.
Small-cap risk-reward improves as earnings, valuations and capex strengthen: Ambit
Source: Moneycontrol