Mirae's Varun Goel: Earnings Cycle Turning, FY27 Recovery to Accelerate

• Varun Goel, Senior Fund Manager at Mirae Asset, states the earning cycle is turning, with recovery strengthening in FY27.
• India's valuation is more attractive than in 2024, potentially drawing more foreign investors.
• Small-cap segment shows strong long-term growth potential despite higher risk and volatility; expects earnings rebound from FY25 cyclical low.
• Mirae focuses on small-cap businesses with robust earnings visibility, prudent balance sheets, and scalable models, eyeing consumption and manufacturing.
• RBI may implement one more rate cut if inflation remains controlled; selectively constructive on IT despite AI disruption.