Morgan Stanley bullish on small, midcaps on growth recovery, valuations

Aditya Birla Capital, Jubilant FoodWorks, MhpasiS, Narayana Hrudyalaya, and Tata Power are among the 22 SMIDs where it remains bullish.

A recovery in growth coupled with attractive valuations should see the small-and mid-caps (SMID) outperform their large-cap peers going ahead, wrote Ridham Desai, head of India research, and India equity strategist at Morgan Stanley in an August 18 note with Sheela Rathi. Aditya Birla Capital, Jubilant FoodWorks, MhpasiS, Narayana Hrudyalaya, Sobha Developers, and Tata Power are among the 22 SMIDs where it remains bullish.

“With monetary aggregates normalising and significant policy action underway with a corporate tax cut last September, we think growth is set to turn. Smaller firms are likely to benefit more due to their operating and financial leverage.