Indian markets are approximately 10% overvalued, with limited potential for further re-rating, according to Prashant Jain, founder and CIO of 3P Investment Managers. He notes that market returns should align with an earnings growth rate of 12-13% CAGR, as inflation remains low and margin improvements are minimal across sectors. Jain highlights that while large-cap growth may reach around 12% CAGR, small- and mid-cap growth will be significantly weaker due to the relative strength of larger companies.
