Mumbai, June 18
India's small-cap segment has seen a fivefold rise in market capitalisation over the last seven calendar years, a new report said on Wednesday.
The data compiled by Bajaj Finserv AMC said that the market capitalisation of small-cap companies grew from Rs 17 lakh crore in 2017 to Rs 92 lakh crore by the end of 2024 -- registering a strong Compound Annual Growth Rate (CAGR) of 27.6 per cent.
In comparison, large-cap stocks saw a CAGR of 14.5 per cent and mid-caps grew at 21.6 per cent during the same period.
This highlights the outperformance of small caps and their growing importance in the Indian stock market.
The report also shows that the contribution of small-cap companies to the total market capitalisation has increased 1.4 times in the last three years.
Their share in corporate profits has gone up 2.5 times in the past four years -- reflecting their improved business performance and rising investor interest.
Despite a price correction in the second half of FY25, many small-cap stocks continue to offer value, the report said.