Valuations

Niranjan Avasthi from Edelweiss Mutual Fund discusses the valuation vs time paradox in investing, emphasizing that while lower valuations improve short-term returns, time in the market becomes more crucial for long-term gains, with discipline being key for investors.

For Nifty episodes involving 4 or more consecutive negative months and measuring returns from the end of the full streak, the subsequent outcomes have historically been strong.

India remains on the FII sell list alongside other emerging markets; while selling has moderated week-on-week, it is too early to conclude that the trend has turned positive.

Sponsored by Adfactors PR. India’s corporate landscape is seeing a clear shift — from a focus on cash flows to a sharper emphasis on valuations, governance and capital efficiency. In this episode of Capital Compass, host Ajaya Sharma speaks with Girish Vanvari, Founder at Transaction Square, on how promoters — particularly in the mid-market — are rethinking growth, capital raising and IPO readiness. The conversation examines how businesses are preparing themselves for external capital, what investors expect today, and why governance and narrative-building have become central to valuation. Key themes include: The shift from profit-first to valuation-driven thinking The role of governance in unlocking capital IPO pricing discipline and market trust Preparing businesses for public markets The rise of family offices in India Emerging sectors and capital allocation risks As capital markets deepen, the rules of value creation are evolving — and so is the promoter mindset. Watch the full episode to understand how India Inc is preparing for its next phase of growth. Capital Compass brings you expert-led clarity on markets, policy and the economy - helping investors, professionals and business leaders make sense of complexity.

From a valuation perspective, the market has already gone through a phase of underperformance driven by high starting valuations and a limited margin of safety, said Dharmesh Kakkad, Senior Fund Manager, ICICI Prudential AMC.