When it comes to large-caps, we think of Reliance, TCS, L&T or Infosys. The fact, however, is that these are not large-caps – they are mega-caps. The recent past has seen the emergence of new stars in the large-cap universe. Companies where policy changes have brought in tailwinds for growth. Or where restructuring has meant more efficient operational parameters and capital allocation. For example, a pharma firm making an audacious bet by taking over a large company. The chances of success are high as the promoters have experience of building a pharma business from scratch. So, stay with select stocks where growth is unlikely to be an issue. The valuation part of the narrative will follow.
