Introducing the Multicap Growth – Quant smallcase

We’re thrilled to announce the launch of our latest offering: the Multicap Growth – Quant smallcase! Designed for investors who want exposure to high-growth companies with solid fundamentals, this smallcase uses a data-driven, scientific approach to pick stocks that can potentially deliver strong returns. Whether you’re new to investing or a seasoned player, this smallcase makes it easy to invest in a portfolio built on logic and numbers.

In this blog, we’ll walk you through what the Multicap Growth – Quant smallcase is, how it works, and why it could be a great addition to your investment journey.

What is Multicap Growth – Quant smallcase?

The Multicap Growth – Quant smallcase is a carefully curated portfolio of stocks selected from the top 500 companies by market capitalization in India. We’ve used a quantitative (quant) approach—think of it as a mix of math and market insights—to filter and pick stocks that show consistent growth, financial health, and positive momentum. The result? A list of 20 stocks that aim to balance growth potential with stability.

This smallcase is appropriate for investors who believe in the power of growing companies but want a disciplined, rule-based strategy to guide their choices.

The Science Behind the Selection

Our selection process is a structured, three-layered approach that ensures every stock in the portfolio earns its spot. Here’s how it works:

Layer 1: Growth Checks

We kick things off by screening for stocks that show real growth and quality:

• Revenue Momentum: Companies with strong revenue growth in the recent past.
• EBITDA Expansion: Companies where revenue growth trickles down through the income statement to the EBITDA component.  

This layer builds a foundation of high-quality growth stocks—companies that are thriving, not just surviving.

Layer 2: Momentum Trends

Growth is great, but we want stocks that are also moving in the right direction:

• Positive Momentum: We look for stocks that are experiencing positive momentum trends. 

This step ensures the portfolio rides the wave of prevailing market trends, boosting its potential for returns.

Layer 3: Risk Management

Markets aren’t always predictable, so we’ve built in a safety valve:

• Interest Burden: Companies whose debt burden isn’t high enough to impact earnings. 
• Liquidity Strength: Companies which qualify our proprietary liquidity criteria. 
• Smart Tilt: If not enough stocks meet our strict criteria, the portfolio shifts toward gold to preserve your capital until conditions improve.

This dynamic approach reduces downside risk, making the smallcase a resilient choice even in choppy markets.

Final Step: The Top Picks

After applying these layers, we sort the filtered stocks by momentum/volatility in descending order and select the top 20 stocks for the final portfolio.

Why Multicap Growth – Quant smallcase?

This smallcase stands out because it combines growth with discipline. Here’s what makes it special:

• Multicap Advantage: It includes companies of all sizes—large, mid, and small-cap—giving you diversification across the market.
• Growth Focus: The focus on revenue and earnings growth ensures you’re investing in businesses that are expanding.
• Risk Management: Filters like low interest burden and positive momentum help reduce exposure to shaky or overly volatile stocks.
• Quant Power: No emotions, no guesswork—just a systematic, numbers-driven process.

This smallcase is designed to identify companies with strong fundamentals and upward potential.

Who Should Invest?

The Multicap Growth – Quant smallcase is ideal for:

• Investors who want exposure to growth stocks 
• Those who believe in a rule-based, transparent approach to investing.
• Anyone looking to diversify their portfolio with a mix of company sizes.

Final Thoughts

At Windmill Capital, we believe investing should be smart, simple, and accessible. The Multicap Growth – Quant smallcase is a step toward that goal—bringing you a portfolio built on data, designed for growth, and easy to understand. So why wait? Take the leap and explore the power of quant investing today!

Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy/sell any security or financial products.Users must make their own investment decisions based on their specific investment objective and financial position and using such independent advisors as they believe necessary.Windmill Capital Team: Windmill Capital Private Limited is a SEBI registered research analyst (Regn. No. INH200007645) based in Bengaluru at No 51 Le Parc Richmonde, Richmond Road, Shanthala Nagar, Bangalore, Karnataka – 560025 creating Thematic & Quantamental curated stock/ETF portfolios. Data analysis is the heart and soul behind our portfolio construction & with 50+ offerings, we have something for everyone. CIN of the company is U74999KA2020PTC132398. For more information and disclosures, visit our disclosures page here.