Why SMEs now

1. Retail Washout:
2. The SME bubble has burst. Retail participation is at multi-year lows. In such a landscape, “where there are no antelopes, there are no lions.” The number of speculative traps naturally declines when the crowd exits.
3. Valuation Reset:
4. Several quality SMEs prices have corrected 40-70% from their highs, while earnings visibility remains intact.
5. Liquidity Opportunity: With fewer buyers, meaningful volume is available at attractive entry levels.

Risks & Caveats

1. Timing Risk: The reversal could take 2–3 years; investors must be ready for prolonged consolidation.
2. Value Trap Risk: Some of the undervalued SME can become fundamentally weak over the time.
3. Liquidity & Volatility: Limited float and wide bid–ask spreads can create short-term price distortions.

Our Framework Going Forward

Intrinsic Value’s approach will focus on sector-aligned SME screening — identifying micro-caps within industries likely to lead the next bull run.

Conclusion

The SME segment is entering a post-euphoria reset — precisely the environment where value investors find future multibaggers. We are re-initiating coverage selectively, with small allocations and a 3–5-year horizon.

Patience, discipline, and balance-sheet quality will define the winners in this phase.

Please note- you may face difficulties while putting Buy and sell orders as these are small SME companies where volume is an every day challenge. That is not a fault of our smallcase but thats how SME deals work.