🚨 In Dec'24, We posted the Nifty SmallCap 100/Nifty 50 ratio chart highlighting an unfavorable risk-reward setup.

📉 This correction was anticipated. With valuations cooling, here's what to expect:

✅ Multiples will compress, impacting fair value calculations.
❌ 80-90 PE isn't sustainable, and multiple expansions are rare now.

💡 Key takeaway:
Big money in investing comes from PE rerating + Earnings growth – the Double Engine Sarkar of wealth creation! 🛤️
👉 Understand the business. Allocate the right multiples for growth.
#Nifty50