GENERAL7 Sept 2026
Small-cap corrections have narrowed to 25% post-covid: SageOne’s Samir Vartak
Small-cap stocks now fall less during market corrections than before COVID, says SageOne’s Samir Vartak. Earlier, these stocks dropped 40-45%; today, the average decline is about 25%. Their earnings are also growing 5-8% faster than large-cap earnings. Cleaner balance sheets, higher return on equity and better cash flows make these companies more resilient.
Key Statutory Highlights
- Pre-COVID, small caps fell about 40-45% during corrections; post-COVID, the average fall is closer to 25%.
- Small-cap earnings now grow at least 5-8 percentage points faster than large-cap earnings.
- More than half of small-cap companies are debt-free, and the median net debt-to-equity ratio is almost zero.
Actionable Advice for Taxpayers / Founders:If you invest in small-cap funds, check the companies’ low debt and strong cash flows, and consider spreading your investment over time rather than in one lump sum.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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