Indian Hotels to VIP, 10 small and midcaps that may perform well in 2020

Stocks in the list meet the criteria of at least 15 per cent growth in earnings as well as returns over the next year

After underperforming the benchmark indices for the last two years, the Nifty Midcap hit a seven-month high last week. The Nifty Smallcap index, too, has recovered, gaining over 10 per cent over the past month after ending CY2019 in the red. Prior to the recent rally, valuation discount of mid-caps as compared to the large-caps stood at decadal highs. This is expected to change on improved risk reward amid low expectations. Further with global liquidity conditions and strong fund flows supportive of the market and a gradual economic revival expected this year, stocks in small- and mid-cap space are expected