I have not looked at the companies in question but a cursory look at them on screener tells me that these trade at very expensive valuations. Managements can guide all they want, its for us to be sure that these guidances will be met. Only if the promised growth materialises in these names can these kind of valuations be justified. On the contrary if something goes wrong, or the market fancy for small and micro caps reverse, even exits can be extremely difficult. The question I ask while evaluating these types of smaller companies is whether I would pay 40-45 PE for these names or go for HDFC Bank like company which is available at sub 20 PE and I have visibility of near 20% growth for next 5-10 years. And in the latter names I can allocate even upto 25-30% of my capital and sleep in peace.
Bull markets induce mistakes from investors. Price action often induces complacency in investors and they get carried away by momentum. In my own portfolio, some of the stocks ( I don’t want to name them) post the run up appear to be expensive as of now. I keep evaluating them critically from time to time, and will take action when needed. ( atleast that’s the thought process as of now. )
@harmeshthakker I don’t track Petronet.