Spark Wealth: Railway, PSU Stocks Offer Value After Sharp 30-50% Correction

• Railway and PSU stocks have seen a sharp 30-50% correction, significantly steeper than the broader market's 24% median fall.
• Devang Mehta of Spark Private Wealth notes this deep drawdown creates selective value opportunities and valuation comfort.
• The investment case for these companies is now driven by core fundamentals like revenues, earnings growth, and healthy order books, not just sentiment.
• Midcap and small-cap stocks show signs of recovery, with cautious optimism for market improvement in the next three months, potentially aided by FIIs.
• Investors should focus on strong fundamentals, earnings visibility, and cash-flow generation for sustainable value in these beaten-down stocks.

Why It Matters: Sharp corrections in railway and PSU stocks create value, but fundamental strength is key for investors.