Shankar Sharma, Founder GQuant, Explains Strategy To Pick Smallcap Stocks

Shankar Sharma, the Founder of GQuant, elucidates his strategy for selecting small-cap stocks. He advocates opting for stocks with lower volatility within the small-cap category. Shankar Sharma suggests choosing companies with favourable capital expenditure (CAPEX) figures, indicating the management's commitment to investing in the company and its operations. Additionally, he emphasizes the importance of exercising caution in the IPO space, recommending that investors allocate no more than 5-10% of their portfolio to IPOs. Sharma underscores that historical data for IPOs may not be readily available, making it crucial for investors not to prioritize IPOs as the primary focus of their investment strategy.