Indian equities have staged an impressive recovery from their March lows, with benchmark indices as well as mid- and small-cap stocks bouncing back sharply. Cooling crude oil prices, easing volatility across commodities and cryptocurrencies, and resilient corporate earnings have all contributed to the market‘s recovery. Yet, investor confidence remains measured as geopolitical uncertainties continue to dominate headlines.

Speaking to ET Now, Samit Vartak, from SageOne Investment Managers, said that while markets have recovered significantly, sentiment has not yet turned outright bullish.

“Yes, I mean, sentiments, they are still jittery because there is so much uncertainty. Things change on a daily basis. We have rebounded from the lows, but if you look at our highs, Nifty is still 9-10% away from where we had reached, maybe in September 2024. So, in that respect, the sentiments are nowhere close to what we can call bullish,” he said.

He believes that one of the biggest overhangs for India—crude oil prices—has eased considerably, although geopolitical developments remain unpredictable.

“I do believe that the drag for India, which was mainly the crude, the worst-case scenario is probably behind us. We do not even know, hopefully things will get better, but there is no certainty of that given Trump in the leading position and then with Iran, where things change very, very quickly,” he said.

Strong earnings provide confidence
Despite lingering uncertainties, Vartak believes corporate earnings continue to paint an encouraging picture for investors.
According to him, small-cap companies delivered median earnings growth of nearly 25% during the previous quarter, while mid-cap companies reported growth of around 22-23%. Even large-cap companies posted healthy earnings growth of about 18-19%.
While higher crude prices could temporarily affect profitability, he expects investors to look beyond short-term disruptions.

“There could be some drag because of crude price inflation, but again investors would know that this will be a transitory phase and probably it may have an impact for a quarter or two, but investors would always look 6, 9, 10, 12 months beyond that,” he said.

He also pointed out that several businesses could actually benefit once raw material costs decline, particularly those that have already implemented price hikes during periods of elevated commodity prices.

“A lot of companies may make a pretty significant improvement in margins going forward… We have seen the same thing play out during post-COVID times when commodity prices went up and companies took price hikes, but when things cooled down, no one really took prices down,” he said.

Why he remains optimistic on small-caps
Vartak recalled that he had turned positive on the mid- and small-cap segment when valuations corrected sharply earlier this year. The key trigger, he said, was valuation comfort rather than sentiment.

He noted that the price-to-book ratio of the small-cap index had slipped below the 25th percentile of its five-year historical range, a rare occurrence previously seen only during the COVID market crash.

Unlike the price-to-earnings ratio, which can fluctuate significantly depending on earnings cycles, Vartak prefers price-to-book as a more stable valuation metric.

Using global semiconductor companies as examples, he explained that elevated earnings can sometimes make PE ratios appear inexpensive even when valuations are stretched.

“For me, price-to-book is a much better multiple compared to the PE multiple. PE multiple tends to be very volatile,” he said.

He added that India’s small-cap valuations remain below their historical median while earnings momentum continues to strengthen.

“I do believe that price-to-book for small-caps is pretty reasonable. They are definitely below the median of the last five-six years and, more importantly, the earnings growth has picked up,” he said.

AI acquisitions remain a high-risk bet
The discussion also turned to India’s IT sector, where companies have increasingly been pursuing acquisitions to strengthen artificial intelligence capabilities.

While acknowledging the strategic intent behind such deals, Vartak cautioned investors against assuming successful outcomes.

According to him, acquisitions involve considerable execution and integration risks, particularly when companies are entering unfamiliar growth areas.

“Companies do try multiple things and it may not be something which is highly predictable. Acquisitions are highly uncertain because the integration… it is a new growth avenue for them,” he said.

He advised investors to remain cautious.

“I would definitely take these acquisitions with a pinch of salt. These are high risk. If it plays out, yes, it can really give you big delta, but I am not so sure about this,” he said.

Stock selection matters more than sector selection
Although several themes such as defence, power equipment and power ancillaries continue to attract investor interest, Vartak believes many of these sectors have become excessively expensive.

He noted that several frontline defence companies now trade at valuation multiples far above their historical averages, leaving limited room for error. Instead of chasing popular themes, he recommends identifying businesses where both growth and valuations remain favourable.

Among the areas he currently likes are export-oriented industries, including textiles, specialty chemicals and contract development and manufacturing organisations (CDMOs). He is also positive on export-focused defence companies, gold financing businesses and select non-banking financial companies capable of delivering sustainable growth of over 20%.

Interestingly, he believes the best opportunities are often found outside the well-known market leaders.

“Picking the right theme or space is not good enough. Picking the valuation within that is also important,” he said.

He highlighted that several newly listed companies in power ancillaries and specialty chemicals continue to trade at significantly lower valuations than their established peers despite offering attractive growth prospects.

“The reason I am positive about small-caps is because that is the space where you do have the growth as well as valuation kind of a combination, which is not really available in the frontline kind of names which are pretty well known to everyone,” he said.

Westbridge Funds Management has expanded its portfolio with the $10.5 million purchase of a partially vacant retail building in Busselton. 

The Subiaco-based property fund purchased 36 to 38 Duchess Street from Aurjoe Pty Ltd and Franjack Pty Ltd, RP Data shows. 

According to ASIC, the two entities are owned by members of the Romano family, of Perth and Queensland. 

The two-storey Federation building includes 4,099 square metres of net lettable area on a 10,139sqm site. 

It is about 50 per cent occupied, with Westbridge working on securing a tenant for the remaining space. 

Westbridge Funds Management chair Damian Collins described the property, which will go into a single asset fund, as a “clear value-add opportunity”. 

“While the current passing income reflects existing occupancy, our strategy is focused on unlocking the full potential of the asset through a substantial refurbishment and reconfiguration of the large vacant space,” he said. 

“We see strong fundamentals underpinning Busselton, including population growth, tourism demand and ongoing infrastructure investment, which give us confidence in the long-term outlook.” 

Mr Collins added that Westbridge planned to invest in upgrades of the property, which was initially built in 1906. 

The purchase follows Westbridge’s recent investment in two industrial properties in Victoria for $62.5 million and its purchase of industrial and medical properties in South Australia and Queensland. 

Knight Frank Australia’s Jonathan Wong brokered the deal for the Busselton property. 

 

 

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Ever watched a conveyor belt humming along in a busy warehouse and wondered how on earth everything gets weighed without someone standing there with a clipboard? Turns out, the answer is a lot cleverer than most people realise.

Weigh-in-motion technology has been creeping into modern conveyor systems for a while now, and to be honest, it’s one of those quiet upgrades that changes everything without making much noise about it. No fanfare. Just better numbers, faster throughput, and fewer headaches for the people running the show.

Let’s talk about why that matters.

So What Is Weigh-in-Motion, Exactly?

Picture this: a product travels along a belt, and instead of stopping to be weighed, it gets measured while it’s still moving. No pausing. No bottleneck. The system captures the weight on the fly and keeps everything flowing.

That’s the basic idea. The clever bit is in the engineering, where load cells, sensors, and some pretty smart software work together to grab an accurate reading even though the item never slows down.

Here’s the thing though. Getting an accurate weight on a stationary scale is easy. Getting one on a moving belt, with vibration, varying speeds, and products of all shapes and sizes? That part’s a bit tricky. But when it’s done properly, the results are genuinely impressive.

Why Businesses Are Paying Attention

The truth is, every second counts in a production line. If your weighing process forces things to stop, even briefly, you’re losing time you’ll never get back. Multiply that across thousands of items a day and the cost adds up faster than you’d expect.

Weigh-in-motion solutions remove that pause. Products keep moving, throughput climbs, and your team isn’t stuck babysitting a scale all shift.

But speed isn’t the only win here.

There’s also accuracy. Modern systems can catch underweight or overweight items in real time, which means dodgy products get flagged before they ever leave the building. For anyone dealing with compliance, packaging standards, or just keeping customers happy, that’s huge.

And then there’s the data. Every weight reading becomes a little piece of information you can actually use. Spotting trends, catching equipment drift, working out where things are going sideways before they become a real problem. That kind of visibility used to be a luxury. Now it’s pretty much expected.

The Integration Part (Where It Gets Interesting)

Now, you might be thinking this all sounds great, but won’t bolting new tech onto existing conveyors be a nightmare? Fair question.

The good news is that integrating weigh-in-motion systems has gotten a whole lot smoother over the years. Modern setups are designed to fit into conveyor lines without you having to rip everything out and start again. Companies offering proper AccuWeigh weighing solutions understand that most businesses can’t afford weeks of downtime, so the focus has shifted to systems that slot in with minimal disruption.

That said, integration isn’t a one-size-fits-all thing. A food packaging plant has very different needs from a logistics depot shifting heavy freight. The belt speed, the product type, the accuracy you need, the environment, all of it shapes how the system gets set up.

This is where having the right people involved really matters. Anyone can sell you a load cell. Getting it calibrated, positioned, and tuned for your specific operation is where the real skill comes in.

Real-World Touches You Might Not Expect

The other day someone pointed out that one of the underrated benefits is how much pressure it takes off staff. No more manual checks. No more squinting at a display while products pile up behind you. People can focus on work that actually needs a human brain.

And let’s not forget maintenance. A well-designed weigh-in-motion system flags its own issues. If a reading starts drifting or a sensor’s playing up, you’ll know about it early rather than discovering the problem after a thousand mislabelled boxes have gone out the door.

Ever noticed how the best technology is the kind you barely think about? That’s sort of the goal here. It just works, quietly, in the background, while everything keeps moving.

Is It Worth It?

Look, no system is magic, and weigh-in-motion tech does take some upfront investment and planning. But for businesses running high volumes where every delay and every error costs money, the maths usually works out in your favour pretty quickly.

Faster lines. Better accuracy. Less manual labour. Useful data. Compliance sorted. When you add it all up, it’s not hard to see why so many operations are making the switch.

The conveyor belt has been around forever, basically. What’s changed is how smart it can be. And honestly, that’s kind of exciting, even if it’s the sort of thing most people walk past without a second glance.

So next time you see a belt quietly doing its job, just know there’s probably a lot more going on under the surface than you’d think.