Market expert Deven Choksey says Adani Energy could be a strong buy for the next few years, while many mid‑cap and small‑cap stocks might face a slowdown.
Why Adani Energy Stands Out
Choksey points to the power sector’s growing need for more electricity transmission and distribution (T&D). Adani Energy is adding a lot of new capacity to its grid network, which puts it in a good position to benefit from this demand.
- Long‑term demand: Power usage in India is expected to rise steadily.
- Transmission focus: The company is expanding its T&D business, a key growth area.
- Time horizon: Choksey looks at a 12‑ to 36‑month window for upside.
Potential Risks for Mid‑Cap and Small‑Cap Stocks
Choksey warns that many mid‑cap and small‑cap stocks are priced too high relative to the growth they can actually deliver. He expects these segments to go through a period of consolidation.
- Valuations are stretched compared with realistic earnings growth.
- Possible price correction or “time correction” lasting 12‑18 months.
- Only a few select stocks may still rise, but the overall theme is caution.
What Investors Might Expect Through 2027
After the expected correction in mid‑cap and small‑cap areas, Choksey predicts large‑cap stocks will lead the market up to 2027. He does not rule out occasional gains in specific mid‑cap or small‑cap companies, but the broader trend favors big‑cap names.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.