FY25: An opportunity for long-term investors to pick small, midcap stocks

The selloff in the small and midcap stocks has led to a moderation in valuation in the segment

After a year of strong outperformance over largecap stocks, small and midcap stocks turned laggard in March this year. For example, the NSE Nifty Midcap 100 was down 0.54 per cent on March 24, while the Nifty Smallcap 100 ended the month logging losses to the tune of 4.42 per cent. In contrast, the benchmark Nifty 50 index gained 1.6 per cent during the month. 
 

The indices, however, do not tell the full story. Several small and midcap stocks are still down 15-25 per cent from their 52-week high despite recovery in the broader indices. This was the worst show