Smallcap Sharp is a high-growth innovator strategy targeting dynamic smallcap businesses across B2C and capital-intensive sectors. Built on ~10 rules from MAGIC 2.0, it emphasizes persistent earnings growth (≥20–25%) and rising capital efficiency. It is designed to capture outsized absolute and risk-adjusted returns, while accepting higher volatility.

Size & Sectors: Avg. mcap ~₹26,000 crore; diversified B2C & capital-intensive

Selected Rule Highlights

1. Persistent PAT CAGR ≥ 20–25%.
2. Rising ROE and ROCE over time.
3. Rules focus on scaling profitability with capital efficiency.

Back-tested Performance Snapshot (1Yr CAGR)

1. Mean: Sharp ~44% | Nifty50 ~17%
2. Median: Sharp ~39% | Nifty50 ~13%
3. Downside Risk (MAR <15%): 0.22 vs 0.15 for Nifty
4. Sortino Ratio: 2.0 vs 1.1 for Nifty
5. Probability of >15% returns: 69% vs 45%

Business Quality Highlights

1. Capital Efficiency: ROCE and ROE ~25+
2. Growth: PAT 10–15%, Revenue 11–15% (1–2 yr)
3. Valuation: P/E ~15–20x; ~53% profit vs ~47% PE re-rating