Nifty_SM100

The research methodology for Waya MicroCap begins with screening listed companies with a market capitalization typically around 1,000 to 1,500 crores, while filtering out penny stocks and illiquid names. A strong emphasis is placed on fundamental strength, selecting businesses with clean balance sheets, improving cash flows, and efficient capital allocation. Special focus is given to niche or emerging sectors where companies demonstrate scalable business models, competitive moats, or turnaround potential. Promoter quality and corporate governance are evaluated through shareholding patterns, disclosures, and audit history. Valuation discipline is maintained by investing in reasonably priced stocks relative to their growth prospects, and companies with red flags such as frequent equity dilution or poor disclosures are excluded. Finally, a liquidity and momentum check ensures that selected stocks have sufficient trading activity and near-term investor interest, helping manage risk in this volatile segment.

<ul><li>Market Capitalization: Stocks with a market cap typically below ₹1,500 crore.</li><li>Liquidity Filter: Minimum average daily traded value (e.g., ₹10–15 lakhs) to ensure ease of entry/exit.</li><li>Financial Strength: Positive operating cash flows, ROCE &gt; 12%, and manageable debt levels (Debt/Equity &lt; 1)</li><li>Business Quality: Niche business models, sector tailwinds, or strong turnaround visibility.</li><li>Governance &amp; Promoter Holding: Promoter holding preferably &gt; 40% and no recent history of regulatory or audit red flags.</li></ul>

Stocks are weighted based on a combination of fundamental strength, sector potential, and conviction level. Higher weight is allocated to companies with strong financials, scalable business models, and greater alignment with long-term structural trends, while maintaining diversification across sectors.

This smallcase will be rebalanced on an as-needed basis

Waya Promising MicroCaps Fundamental

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Companies under 1,000 crore market cap with good fundamentals poised for significant wealth creation

Waya Promising MicroCaps Fundamental

Overview

Stocks & Weights

Investment Rationale

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