IIFL’s GV Giri bets on smallcap and midcap stocks; says good companies will not suffer

GV Giri, head-research at IIFL Institutional Equities, on Tuesday said that still there are some companies with strong earnings growth and reasonable valuations.

In an interview with CNBC-TV18, he said, “In the note, we have tried to pick some of those kinds of names out. Value might be a misleading term because sometimes companies just face value traps, but a couple of instances where we think that the earnings growth be very strong and stocks are extraordinarily rich in the midcap and smallcap space, for instance, Chambal Fertilisers and Chemicals, Kaveri Seed Company, Craftsman Automation, but broadly, wherever else you look, multiples have gone up. So we have to do the best we can in terms of picking the relative value.”

“Therefore, choose companies where there is strong earnings visibility and where companies are not trading too far above their own historical levels,” Giri said.