Vikas Khemani Predicts Midcaps, Smallcaps to Lead in Next Decade, Eyes Pharma Sector Growth

The Reader Wall Google News

Vikas Khemani’s Investment Strategy for Sustainable Portfolio Growth

Faster, Stronger, Cheaper Valuation Criteria

According to our sources, Vikas Khemani, Founder of Carnelian Asset Advisors, advocates for an investment strategy centered on faster, stronger, and cheaper valuation criteria. This method of investing, he argues, is especially potent when focused on midcaps and smallcaps. Khemani asserts that these companies are likely to outdo largecaps over the next half-decade to the full decade.

Projected Upsurge in the Pharma Sector

Khemani sees the pharmaceutical industry as a sector ripe with growth potential. Particularly, he spots considerable opportunities in the Active Pharmaceutical Ingredients (API) space, ER&D companies, manufacturing, and capital market-oriented AMCs. These areas, he believes, hold the promise of delivering substantial returns to investors.

Khemani’s Investment Philosophy

What underlines Khemani’s investment approach is his emphasis on cultivating a portfolio that outpaces the index in growth, boasts a robust return on equity (ROE), and possesses a sound debt to equity ratio. Furthermore, he values the criterion of cheaper valuation.

Optimism for the Indian Economy

Khemani predicts significant expansion for the Indian economy, anticipating its metamorphosis into a $10 trillion economy. Such growth, he states, would not only benefit the private banking sector but also public banks.

Rising Pharma Sector

  • Khemani identifies the pharma industry as experiencing a meaningful inflection point. He cites potential in areas such as generics, Contract Research And Manufacturing Services (CRAMS), and companies that prioritize domestic markets alongside the US turnaround.
  • Despite the inevitable ebb and flow of market cycles, Khemani remains unwavering in his belief regarding the long-term prosperity of the Indian market. This optimism spans across various industries, including Information Technology (IT), manufacturing, and financial sectors.
  • Importance of Reasonable Pricing

    Khemani emphasizes the significance of purchasing at a sensible price, signifying it as a crucial factor for wealth creation. Regardless of the sector, he maintains that reasonable pricing boosts the investors’ potential for generating wealth.

    In Conclusion

    By leaning into Khemani’s investment philosophy of faster growth, stronger return on equity, and cheaper valuation, investors can maximize their portfolios’ potential for sustainable growth. Furthermore, sectors such as pharma, IT, manufacturing, and financials are poised for future prosperity, presenting great opportunities for long-term investments.


    Brielle, a dedicated and insightful author, contributes to ReaderWall's Education category with a passion for knowledge sharing. Her engaging writing style and expertise in educational topics create a compelling resource for readers seeking valuable insights and information. Explore Brielle's articles to enhance your understanding and stay informed in the ever-evolving landscape of education.