New Delhi, Dec. 10 -- After a strong rally from FY20 to FY24, Indian small-cap stocks have largely traded sideways over the past year.

The consolidation comes on the back of stretched valuations, tighter liquidity, macro pressures such as higher interest rates and a weaker rupee, softer earnings trends, and an unusually heavy pipeline of new IPOs absorbing investor flows.

The small and mid-cap segment has undergone a full year of correction, making valuations far more reasonable.

Against this backdrop, here's a look at four fundamentally strong small-cap stocks that are currently down sharply from their 52-week highs.

EMS is a multidisciplinary engineering, procurement, and construction (EPC) company, based in Delhi, specialising in c...