Small Cap Stocks

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Sensex 54288.61
37.78 (-0.07%)

Small Caps are a set of companies with market capitalisation less than Rs. 5,000 Cr. These are small-sized emerging companies, and a few are likely to grow on to become Mid Cap or Large Cap companies. However, their survival rate is very low, and quite a few tend to go bust in an economic down-cycle. Because of the high volatility of Small Caps, we recommend you to consult a Fiduciary Investment Advisor before investing in them. Bookmark this page for your easy reference in future.

In the table below you will find important data on Small Cap Companies Share prices, 52-week High and Low, PE ratio, etc. You will also get MoneyWorks4me's rating on Quality, Valuation, Price Trend and Overall Rating to assist you in taking informed stock investing decisions. Register or Download App to use these with ease.

Q : Quality V : Valuation PT : Price Trend
Small Cap Companies as on May-2022 |
Decizen : Q : Quality V : Valuation PT : Price Trend


Company Name (M.Cap)


DeciZen


CMP


Price
Change


Market
Cap (Cr)


52W
High


52W
Low


ROE


P/E


P/BV


EV/
EBITDA
Q V PT
63.10
0.72%
4,963
71.40 36.10 -19.58 0.00 5.86 -
Q V PT
3,220
0.60%
4,942
3,894 2,786 33.13 15.43 4.60 9.83
Q V+ PT
887.2
-0.67%
4,918
1,621 832.0 22.89 50.44 6.12 39.24
Q V PT
245.8
0.99%
4,885
274.9 143.7 49.23 32.28 4.32 21.40
Q V PT
201.9
-0.88%
4,870
284.4 109.0 7.68 25.38 3.66 22.04
Q V+ PT
2,180
-0.67%
4,865
2,976 2,001 34.94 50.68 10.38 75.68
Q V PT
2,361
2.57%
4,864
2,773 1,455 10.70 30.31 4.26 12.80
Q V PT
1,824
2.28%
4,849
2,388 1,670 4.27 108.08 6.71 41.17
Q V+ PT
462.8
-3.01%
4,843
519.4 410.0 10.95 98.01 2.31 28.96
Q V PT
353.0
-2.97%
4,840
514.9 306.4 18.06 29.88 5.02 28.45
Q V PT
95.10
-2.91%
4,832
189.9 86.60 -35.60 0.00 2.41 -
Q V PT
1,199
-1.76%
4,768
2,268 971.5 13.33 46.90 5.91 25.44
(S)
Q V PT
367.2
-3.91%
4,712
742.0 346.0 15.11 24.70 4.44 16.37
Q V+ PT
11,139
-1.28%
4,689
15,100 9,483 25.18 29.56 6.64 19.18
Q V PT
339.6
2.55%
4,583
478.0 262.2 14.94 25.19 4.40 19.14
Q V+ PT
118.2
3.91%
4,536
124.9 69.70 13.48 34.51 7.04 33.28
Q V+ PT
1,487
4.16%
4,506
1,799 800.9 17.46 42.14 8.67 38.56
Q V PT
564.5
3.87%
4,461
940.5 170.0 1.03 126.19 5.74 -
(S)
Q V PT
1,679
-1.64%
4,454
2,100 757.5 15.15 18.08 5.14 17.49
Q V PT
12.41
-3.50%
4,373
19.25 6.76 4.14 0.00 0.36 8.06
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Which small cap stocks to buy for best returns?

Small Cap Companies Faqs:

Small cap is used to refer to companies that have a relatively smaller market capitalisation. A company’s market capitalisation is the market value of its outstanding shares. The criterion for classifying small cap companies can vary among brokerages, but it is generally a company with a market capitalisation less than Rs. 5,000 crore but more than Rs. 500 crore. Over 90% of Indian companies are considered small cap.

The NIFTY Small Cap 100 Index reflects the performance and behaviour of the small cap segment of the market. The NIFTY Small Cap 100 Index comprises of 100 tradable exchange-listed companies.

The NIFTY Small Cap 100 Index represents about 3.3% of the free-float market capitalisation of the stocks listed on the NSE as on March 29, 2019.

The benefits of investing in small cap companies in India are:
  • Growth Potential: In comparison to larger companies, small cap firms have a higher potential for growth. This makes them an attractive option for investors with high risk appetite.
  • Taking advantage of inefficiencies in the market: Analysts/institutional investors pay little attention to small cap companies, owing to the very low liquidity. Thus there is a high probability of mispricing in these stocks. This allows retail investors to use the inefficiencies of market pricing and earn a greater return on their investment.
One of the biggest reasons for buying a small cap stock instead of a large cap stock is the huge growth potential. Shortlisting stocks based on their recent growth can be a good first step towards finding some of the best small cap stocks in India.

Based on the past 5 year sales growth, the best small cap stocks in India are:

Company Name CMP MKT Cap(Cr) 5Y Profit Growth
Apollo Pipes Ltd.(S) 382.2 498 251.53
Hindustan Foods Ltd.(S) 928 1,901 113.45
IFB Industries Ltd.(S) 660 2,645 68.77
Apollo Tricoat Tubes Ltd.(S) 591 1,778 61.6
Welspun Enterprises Ltd.(S) 70 1,041 57.03
The process of choosing best small cap stocks for investment does not entirely differ from that involved in choosing other stocks. You can follow the simple approach mentioned in our investment guide here.

It does, however, warrant extra caution (like a higher margin of safety) due to the higher risk you take by investing in small cap companies.

Yes, small cap stocks do pose a higher risk to investors. The reasons for the same are as follows:
  • Unsteady Business model: Small cap companies are relatively newer entrant in the industry which means the business is unsteady and relies on a lot of external factors. Eg. An economic downturn for a company with high debt can pave the way for bankruptcy
  • Access to new capital: The above factors also mean difficult access to capital, leading to higher interest payments.
  • Low Liquidity: Small cap stocks are less liquid than their larger counterparts. This means negligible institutional presence, less research, etc.

That said, small-cap stocks in India can also give you lucrative returns. So, if you do decide to invest in the stocks of small-cap companies, make sure to do your due research about the company before making your investment. You should also diversify your investments to reduce risk.

The best performing stocks in the Nifty Small Cap 100 Index based on the past year are:
Company Name Is it a Right Stock? CMP Market Cap(Cr) Yearly Gian
Laurus Labs Ltd.(M) Very Good 327 17,790 409.83
Granules India Ltd.(M) Somewhat Good 393 9,740 289.41
Dixon Technologies (India) Ltd.(M) Somewhat Good 9,033 9,779 176.71
JB Chemicals & Pharmaceuticals Ltd.(M) Very Good 1,006 7,387 164.93
Deepak Nitrite Ltd.(M)) Somewhat Good 735.7 10,017 141.66
Small cap companies with the highest revenue growth in the past 3 years are:
Company Name Is it a Right Stock? CMP Mkt Cap (Cr) 5Y Sales Growth
Dixon Technologies (India) Ltd.(M) Somewhat Good 9,033 9,779 29.65
Indiamart Intermesh Ltd.(M) Very Good 4,996 14,565 29.4
Amber Enterprises India Ltd.(M) Somewhat 1,992 6,666 26.36
Rites Ltd.(M) Somewhat 239.1 6,014 19.47
KEI Industries Ltd.(S) Somewhat 335.7 3,037 19.44
Based on the past 5 year’s profitability, the best performing small cap companies are:
Company Name Is it a Right Stock? CMP Mkt Cap (Cr) 5Y ROCE
Indian Energy Exchange Ltd.(M) Very Good 195.7 5,696 43.43
Tata Elxsi Ltd.(M) Very Good 1,458 9,204 36.15
Avanti Feeds Ltd.(M) Somewhat 509 6,971 32.95
Dixon Technologies (India) Ltd.(M) Somewhat 9,033 9,779 23.11
Indiamart Intermesh Ltd.(M) Very Good 4,996 14,565 21.1