How to Find Fast-Growing SME Stocks & Generate High Returns with Sandeep Singh

Sandeep, an investor with experience in over 10 SME companies, discusses the potential of the SME market segment, inspiring investment due to founders' passion and expertise. He emphasizes the importance of recognizing individual investors' capabilities and combats negative perceptions towards SMEs. Sandeep shares his experiences from the early days of SME listings in India, where up to 80% of companies were perceived negatively.

He advises retail investors to allocate no more than 30% of their portfolio to SMEs due to their high-risk nature. Despite challenges, Sandeep expresses faith in the potential of the SME segment and advocates for making these stocks more accessible to a larger pool of investors. The discussion covers topics such as the financial hierarchy, challenges faced by first-generation entrepreneurs, and the importance of understanding the reasoning behind investment decisions.

Sandeep discusses the growth potential and challenges of investing in Small and Medium Enterprises (SMEs), particularly those in the Business-to-Government (B2G) sector. He highlights the significant growth potential of these companies due to their heavy workload in infrastructure, logistics, and EPC industries, but warns of the risks associated with political instability and changes in government.

Sandeep also touches upon the importance of understanding the nature of SMEs and the role of promoters, as well as the challenges of assessing SMEs compared to larger companies. He emphasizes the importance of transparency, thorough analysis, and critical questioning when evaluating SME investments. Sandeep also discusses his investment approach towards SMEs and the comparison he makes between investing in SMEs and Venture Capital Private Equity (VCPE). Overall, the conversation underscores the need for a rigorous approach and a deep understanding of the unique challenges and opportunities in the SME space.