Latest news with #Badjate
Economic Times
3 days ago
- Business
- Economic Times
Smallcap mania is back. But do Q4 earnings really justify the multibagger hype?
A blistering rally in smallcap stocks is reigniting investor dreams of overnight riches but the numbers are telling a far more complicated story. With the BSE Smallcap Index up nearly 10% in one month, retail participation is surging, echoing the speculative fervor of the last bull market that climaxed in September 2024. And the excitement isn't just index-level: in the last one month, a staggering 69 smallcap stocks have delivered over 30% returns. Among the biggest gainers, Suven Life Sciences surged 83%, while GRSE, Timex, IFCI, Nelcast, and HLE Glascoat all rallied at least 50%. ADVERTISEMENT But while prices soar, fundamentals remain shaky and earnings aren't keeping pace with the hype. 'Indian smallcaps and midcaps seem to have outperformed largecaps in Q4 FY25, but the numbers tell a different story,' said Akshay Badjate, Fund Manager at Merisis PMS. 'Our analysis of the top 750 listed companies shows smallcaps lagging in profit growth, with a median PBT growth of just 4% compared to 11% for the top 250 largecaps. Many smallcaps even posted flat or negative growth, undermining the narrative of a broad-based rally.' Despite the tepid performance on the bottom line, investor appetite has remained insatiable. The Nifty Smallcap 250 has rallied 9% in the last two months, triple the 3% rise seen in the Nifty 50. Badjate attributes this surge to 'liquidity, retail enthusiasm, and domestic growth optimism,' but warns that the disconnect between price and performance may not be sustainable.'Our view at Merisis Advisors is cautious,' he said. 'While select smallcaps with strong fundamentals remain appealing, the segment risks a correction if earnings don't align with valuations. We're trimming smallcap exposure and leaning into largecaps and large midcaps, where we see better operational momentum and value.' Also read | Rs 7 lakh crore boom in just 10 days! Is the smallcap stocks party getting out of hand? ADVERTISEMENT Q4 did deliver a few bright spots for the broader market. 'The Nifty Midcap 150 reported 15% YoY profit growth and the Smallcap 250 delivered 12%. Margin performance was largely stable in midcaps, though smallcaps saw some pressure,' said Krishna Appala, Fund Manager at Capitalmind Appala also flagged that the earnings catch-up story has its limits. 'Valuations remain stretched — midcaps trade at 34x and smallcaps at 32x trailing earnings, well above the 22x seen in largecaps. The divergence between earnings and valuations in the broader market calls for greater selectivity.' ADVERTISEMENT He further added that while largecaps may appear sluggish, they now offer a better risk-reward profile. 'Despite the sharp upmove recently, largecaps currently offer a better balance of earnings visibility and valuation comfort on a forward-looking basis. The environment today rewards fundamentals and discipline over broad-based exposure — especially when mid and smallcap multiples leave little room for error.'Still, not all fund managers are ready to write off smallcaps just yet. Vaibhav Chugh, Director and Head of Sales at Whiteoak Capital AMC, sees rich opportunity in the chaos — provided investors pick wisely. ADVERTISEMENT 'Yes, the result season started slow but as it progressed, midcaps and smallcaps have surprised on growth trajectory as well as upgrades to downgrades statistics,' Chugh said. 'We continue to be overweight small caps. We find relatively high alpha opportunities due to the heterogeneity of business models, sectors and sub-sectors in the smallcap space — which is the ideal setup for bottom-up stock pickers.' With nearly 70 smallcap names delivering eye-popping returns in a matter of weeks, the lure of the next multibagger is proving hard to resist. But experts caution that investors need to tread carefully — the fundamentals are not as broad-based as the rally suggests, and elevated valuations leave little room for disappointment. The smallcap story is far from over, but chasing momentum without earnings to back it could lead to painful lessons. Also read | Sensex soars 10,000 points from April lows. But India Inc's Q4 numbers expose cracks in market rally (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
3 days ago
- Business
- Time of India
Smallcap mania is back. But do Q4 earnings really justify the multibagger hype?
A smallcap rally is exciting investors, with the BSE Smallcap Index rising nearly 10% in a month and many stocks delivering over 30% returns. However, earnings growth lags behind, with smallcaps showing lower profit growth compared to largecaps. Experts advise caution, suggesting a focus on fundamentals and a potential shift towards largecaps due to stretched valuations in the smallcap segment. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A blistering rally in smallcap stocks is reigniting investor dreams of overnight riches but the numbers are telling a far more complicated story. With the BSE Smallcap Index up nearly 10% in one month, retail participation is surging, echoing the speculative fervor of the last bull market that climaxed in September 2024. And the excitement isn't just index-level: in the last one month, a staggering 69 smallcap stocks have delivered over 30% returns. Among the biggest gainers, Suven Life Sciences surged 83%, while GRSE Nelcast , and HLE Glascoat all rallied at least 50%.But while prices soar, fundamentals remain shaky and earnings aren't keeping pace with the hype.'Indian smallcaps and midcaps seem to have outperformed largecaps in Q4 FY25, but the numbers tell a different story,' said Akshay Badjate, Fund Manager at Merisis PMS. 'Our analysis of the top 750 listed companies shows smallcaps lagging in profit growth, with a median PBT growth of just 4% compared to 11% for the top 250 largecaps. Many smallcaps even posted flat or negative growth, undermining the narrative of a broad-based rally.'Despite the tepid performance on the bottom line, investor appetite has remained insatiable. The Nifty Smallcap 250 has rallied 9% in the last two months, triple the 3% rise seen in the Nifty 50. Badjate attributes this surge to 'liquidity, retail enthusiasm, and domestic growth optimism,' but warns that the disconnect between price and performance may not be sustainable.'Our view at Merisis Advisors is cautious,' he said. 'While select smallcaps with strong fundamentals remain appealing, the segment risks a correction if earnings don't align with valuations. We're trimming smallcap exposure and leaning into largecaps and large midcaps, where we see better operational momentum and value.'Q4 did deliver a few bright spots for the broader market. 'The Nifty Midcap 150 reported 15% YoY profit growth and the Smallcap 250 delivered 12%. Margin performance was largely stable in midcaps, though smallcaps saw some pressure,' said Krishna Appala, Fund Manager at Capitalmind Appala also flagged that the earnings catch-up story has its limits. 'Valuations remain stretched — midcaps trade at 34x and smallcaps at 32x trailing earnings, well above the 22x seen in largecaps. The divergence between earnings and valuations in the broader market calls for greater selectivity.'He further added that while largecaps may appear sluggish, they now offer a better risk-reward profile. 'Despite the sharp upmove recently, largecaps currently offer a better balance of earnings visibility and valuation comfort on a forward-looking basis. The environment today rewards fundamentals and discipline over broad-based exposure — especially when mid and smallcap multiples leave little room for error.'Still, not all fund managers are ready to write off smallcaps just yet. Vaibhav Chugh, Director and Head of Sales at Whiteoak Capital AMC, sees rich opportunity in the chaos — provided investors pick wisely.'Yes, the result season started slow but as it progressed, midcaps and smallcaps have surprised on growth trajectory as well as upgrades to downgrades statistics,' Chugh said. 'We continue to be overweight small caps. We find relatively high alpha opportunities due to the heterogeneity of business models, sectors and sub-sectors in the smallcap space — which is the ideal setup for bottom-up stock pickers.'With nearly 70 smallcap names delivering eye-popping returns in a matter of weeks, the lure of the next multibagger is proving hard to resist. But experts caution that investors need to tread carefully — the fundamentals are not as broad-based as the rally suggests, and elevated valuations leave little room for disappointment. The smallcap story is far from over, but chasing momentum without earnings to back it could lead to painful lessons.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Techday NZ
05-05-2025
- Business
- Techday NZ
Netgear unveils new business strategy with AI & AV growth
NETGEAR has introduced a new strategy intended to address the rising requirement from small to medium businesses for seamless, scalable, and secure network connectivity. The company's revised approach for NETGEAR for Business aims to deliver next-generation networking products focused on simplicity, reliability, and cost-effectiveness, targeting small and medium-sized enterprises without compromising on its established record of expertise in networking technology. CJ Prober, Chief Executive Officer at NETGEAR, commented on the transformation, stating, "For nearly 30 years, NETGEAR has been the trusted force behind the world's most critical connections—powering businesses, ideas, and experiences across the globe. But the business world is evolving quickly and so are we. Networking is no longer just about being online; it's about leveraging that connection to drive innovation, collaboration and experiences." He added, "In this next era of NETGEAR we're stripping away complexity, removing friction, and reimagining what business networking can be so that our customers don't just keep up with change, they lead it." The change in NETGEAR's business vision is being led by Pramod Badjate, President and General Manager of NETGEAR for Business. Badjate, who joined the company nine months ago and has past experience in networking firms including Arista, Ruckus, and Cisco, is directing a shift in strategy that positions NETGEAR more prominently as a partner for small and medium businesses confronting increasingly digital operations. The company reported over 15% revenue growth in this segment last quarter and projects double-digit growth for 2025. Badjate is spearheading increased investment in product development and technological advancements. NETGEAR plans to accelerate research and development funding over the next three years to improve its portfolio for business customers. A primary element of the strategy includes the acquisition of VAAG Systems, a Chennai-based company specialising in embedded and cloud software. The acquisition will form the core of NETGEAR's new Software Development Centre in Chennai, bringing in a team with experience from Qualcomm, HP, Cisco, and MaxLinear. This team will focus on applying artificial intelligence to streamline networking tasks for small and medium enterprises. The company emphasised that every new initiative supports a clear goal: moving customers away from complex or fragmented networks lacking adequate support and avoiding unnecessarily expensive network systems with unused features. Badjate explained, "Current networking solutions don't meet the needs of small and medium enterprises. They're stuck with either complex, overpriced systems meant for larger companies or fragmented solutions that don't integrate well and lack proper support." He continued, "We're changing that, offering an integrated solution that is much easier to deploy and manage for MSPs and small IT departments alike. We acknowledge the criticality of networking for these businesses and do not compromise on reliability and support." NETGEAR also highlighted its work in AV-over-IP technology, pointing out the increased need for seamless video integration in modern workplaces. The company's AV division has established a partnership network exceeding 400 industry participants and provides a portfolio of preconfigured AV solutions and support services. Under Badjate's leadership, this segment intends to expand its portfolio for commercial, broadcast, and residential clients, furthering NETGEAR's position at the crossroads of AV and IT. Speaking about the AV business segment, Badjate said, "From concert halls and command & control centres to stadiums and boardrooms, NETGEAR AV powers the world's most impactful audio-visual experiences. There has never been a more exciting time to be a partner or customer of NETGEAR. We are delivering plug and play AV solutions that just work by deleting the complexity of an AV over IP network. Our partners, in turn, realise huge savings in labor costs compared to traditional solutions." NETGEAR stated that over the coming months it will introduce additional products, programmes, and partnerships, all with the aim of supporting its business customers with greater simplicity, AI-driven improvements, scalability, and technical support.
Forbes
30-04-2025
- Business
- Forbes
Netgear Shifts Focus To Simple And Reliable Network Solutions For SMEs
Netgear headquarters in Silicon Valley; Netgear Inc. is a multinational computer networking company Netgear has long been a high-profile brand in the consumer and business networking market but with increasing competition at the budget end of the sector, the company is sharpening up its vision to meet the growing demand from small and medium enterprises looking for scalable and secure networking systems. 'For nearly 30 years, Netgear has been the trusted force behind the world's most critical connections—powering businesses, ideas, and experiences across the globe. But the business world is evolving quickly and so are we. Networking is no longer just about being online; it's about leveraging that connection to drive innovation, collaboration and experiences,' says CJ Prober, Netgear's CEO. 'In this next era of Netgear, we're stripping away complexity, removing friction, and reimagining what business networking can be so that our customers don't just keep up with change, they lead it,' he adds. Pramod Badjate is Netgear's business president and general manager. Before joining Netgear, Badjate ... More worked with Arista, Ruckus and Cisco. Leading the expansion is Netgear's business president and general manager Pramod Badjate with expertise in networking gained with Arista, Ruckus and Cisco. Since joining Netgear nine months ago, Badjate has been repositioning the brand into the go-to partner for SMEs with increasing digital demands. The company has experienced rapid growth in the SME segment, with over 15% revenue expansion in the last quarter and double-digit growth forecasted for 2025. Badjate is directing significant investment into product and technology innovation while also assembling a team across all functions to ensure Netgear can meet its customers' demands while making the business relationship easier. Over the next three years, Netgear plans to accelerate its investment in R&D to enhance its current business products and services. The first key milestone is the acquisition of VAAG Systems, a creator of innovative embedded and cloud software solutions based in Chennai, India. Netgear makes the Orbi, arguably the world's most sophisticated and powerful wireless mesh ... More networking solution currently on the market. This is the Wi-Fi 7 version. Netgear claims this investment will enable the company to accelerate the in-sourcing of a software development capability and will form the foundation of Netgear's new Chennai-based Software Development Center. The new team has lots of industry expertise with companies such as Qualcomm, HP, Cisco and MaxLinear. The focus will be on leveraging AI to simplify networking for SMEs. Each of Netgear's new developments or additions will now follow a clear strategy to help businesses escape the clunky and fragmented networks that lack support. The new approach will help companies avoid bloated and overpriced networking systems containing features many businesses simply don't need. With competition at the budget end of the market now very fierce, it makes sense for Netgear to play to its strengths by servicing SMEs with more focused and usable networking products. 'Current networking solutions don't meet the needs of small and medium enterprises. They're stuck with either complex, overpriced systems meant for larger companies or fragmented solutions that don't integrate well and lack proper support,' says Badjate. 'We're changing that, offering an integrated solution that is much easier to deploy and manage for MSPs and small IT departments alike. We acknowledge the criticality of networking for these businesses and do not compromise on reliability and support.' The Netgear range covers every sector from consumer through SME and high-end enterprise networking ... More solutions. Netgear Business is also a pioneer in AV-over-IP technology, which helps businesses, customers and employees connect. Recognizing the surge in demand for seamless video integration, the AV division has developed a robust ecosystem consisting of more than 400 industry partners, supported by a portfolio of preconfigured solutions, design services and ongoing education. Under Badjate's leadership, this high-growth segment will expand its offerings in commercial, broadcast and residential AV. 'From concert halls and command and control centers to stadiums and boardrooms, Netgear AV powers the world's most impactful audio-visual experiences,' stresses Badjate. 'There has never been a more exciting time to be a partner or customer of NETGEAR. We are delivering plug-and-play AV solutions that just work by deleting the complexity of an AV over IP network. Our partners, in turn, realize huge savings in labor costs compared to traditional solutions.' In the coming months, Netgear says it will continue to unveil new products, programs, and partnerships to innovate and keep the company's business customers ahead of the curve with AI-driven advancements, scalability and innovation.
