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Best Small Cap Stocks in India

Small cap stocks, categorised by a market capitalisation under Rs. 5,000 cr., present unique opportunities and challenges for investors. Here's the list of best small cap stocks in India.

Best Small Cap Stocks

Smallcap Stocks

List of Smallcap stocks listed in NSE.
last updated at 9:45 PM IST 
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Showing 1 - 20 of 100 results

last updated at 9:45 PM IST 
NameStocks (100)Sub-SectorSub-SectorMarket CapMarket CapClose PriceClose PricePE RatioPE Ratio1M Return1M Return6M Return6M Return1Y Return1Y ReturnPB RatioPB RatioReturn on EquityReturn on EquityROCEROCE
1.IDBI Bank LtdIDBIPrivate BanksPrivate Banks84,298.8384,298.8378.4078.4014.5614.5611.9411.94-7.15-7.15-6.00-6.001.651.6511.8511.859.659.65
2.Godfrey Phillips India LtdGODFRYPHLPFMCG - TobaccoFMCG - Tobacco37,174.8137,174.817,173.507,173.5042.1042.1034.7734.778.758.75114.00114.008.778.7722.6622.6624.2224.22
3.Narayana Hrudayalaya LtdNHHospitals & Diagnostic CentresHospitals & Diagnostic Centres34,268.0234,268.021,687.251,687.2543.4243.4214.9714.9737.0637.0630.5530.5511.8811.8831.4631.4622.1922.19
4.Laurus Labs LtdLAURUSLABSPharmaceuticalsPharmaceuticals32,843.1732,843.17609.05609.05204.57204.5713.4813.4832.1732.1746.6746.677.987.983.933.937.957.95
5.Kaynes Technology India LtdKAYNESElectrical Components & EquipmentsElectrical Components & Equipments32,241.9032,241.905,036.955,036.95175.91175.9116.0816.08-3.60-3.6081.2081.2012.9612.9610.6310.6311.3711.37
6.Radico Khaitan LtdRADICOAlcoholic BeveragesAlcoholic Beverages31,720.4131,720.412,370.602,370.60120.99120.9913.4813.4815.8415.8438.8438.8413.0013.0011.2811.2814.1614.16
7.Piramal Pharma LtdPPLPHARMAPharmaceuticalsPharmaceuticals30,105.6130,105.61228.00228.001,689.431,689.4317.0117.012.722.7270.8570.853.813.810.240.245.865.86
8.Aegis Logistics LtdAEGISLOGOil & Gas - Storage & TransportationOil & Gas - Storage & Transportation28,173.0228,173.02802.65802.6549.5049.500.880.889.249.2486.1686.166.316.3113.3813.3814.1914.19
9.Multi Commodity Exchange of India LtdMCXStock Exchanges & RatingsStock Exchanges & Ratings27,347.5427,347.545,372.505,372.50329.05329.055.235.23-7.13-7.1350.2450.2419.8419.845.825.824.604.60
10.Poonawalla Fincorp LtdPOONAWALLAConsumer FinanceConsumer Finance26,917.4426,917.44348.25348.2516.0016.0024.5224.52-11.47-11.47-26.61-26.613.303.3022.3822.3812.4112.41
11.Go Digit General Insurance LtdGODIGITInsuranceInsurance26,536.4826,536.48287.70287.70146.06146.06-3.83-3.83-27.79-27.79-5.98-5.989.849.847.087.085.925.92
12.PG Electroplast LtdPGELElectronic EquipmentsElectronic Equipments25,948.3625,948.36916.60916.60192.64192.6413.9213.9249.5449.54409.17409.1725.0025.0018.7918.7916.9716.97
13.Central Depository Services (India) LtdCDSLStock Exchanges & RatingsStock Exchanges & Ratings25,528.3125,528.311,221.451,221.4560.9160.917.767.76-13.70-13.7030.2030.2016.9416.9430.3230.3236.0836.08
14.Shyam Metalics and Energy LtdSHYAMMETLIron & SteelIron & Steel25,423.8525,423.85914.40914.4024.5724.5721.2121.210.240.2446.8246.822.462.4611.5111.5110.0110.01
15.Chambal Fertilisers and Chemicals LtdCHAMBLFERTFertilizers & Agro ChemicalsFertilizers & Agro Chemicals25,409.3725,409.37634.20634.2019.9219.9215.3815.3819.4019.4075.1775.173.463.4617.6317.6321.7521.75
16.Inventurus Knowledge Solutions LtdIKSHealth Care Equipment & SuppliesHealth Care Equipment & Supplies25,311.2025,311.201,518.551,518.5568.3268.32-17.40-17.40-19.90-19.90-19.90-19.9021.8621.8637.3037.3024.0624.06
17.ITI LtdITITelecom EquipmentsTelecom Equipments24,282.5724,282.57252.71252.71-42.68-42.682.212.21-2.16-2.16-7.30-7.3013.6113.61-27.36-27.36-14.94-14.94
18.Brigade Enterprises LtdBRIGADEReal EstateReal Estate23,921.8323,921.83978.90978.9052.9752.971.631.63-28.53-28.532.952.956.726.7213.4813.4812.0112.01
19.Aster DM Healthcare LtdASTERDMHospitals & Diagnostic CentresHospitals & Diagnostic Centres23,892.6223,892.62479.65479.65184.81184.8119.0019.0013.5813.5817.0217.024.754.752.612.615.785.78
20.PNB Housing Finance LtdPNBHOUSINGHome FinancingHome Financing23,836.4323,836.43917.05917.0515.8115.8113.6613.66-2.31-2.3126.6626.661.591.5911.6111.612.942.94

Overview of the Best Small Cap Stocks

Indian Energy Exchange Ltd

Indian Energy Exchange Ltd (IEX) was incorporated in 2007 and is India’s first and largest energy exchange, facilitating the trading of electricity, renewable energy certificates, and energy-saving certificates.

Central Depository Services (India) Ltd

Central Depository Services (India) Ltd (CDSL) was established in 1999 as a depository in India, providing services related to the dematerialisation of securities, e-voting, and other investor services. It is one of the key players in India’s financial market infrastructure.

Aptus Value Housing Finance India Ltd

Aptus Value Housing Finance India Ltd was founded in 2009 and operates in the home financing sector, focusing on providing housing loans to the self-employed and informal income segment in India.

Five-Star Business Finance Ltd

Five-Star Business Finance Ltd was founded in 1984 and is engaged in providing secured business loans to micro-entrepreneurs and self-employed individuals, focusing on underserved markets in India.

Clean Science and Technology Ltd

Clean Science and Technology Ltd was incorporated in 2003 and specialises in developing and manufacturing speciality chemicals used in various industries, including pharmaceuticals, agrochemicals, and personal care.

Advantages of Investing in the Small Cap Stocks

High Growth Potential

Small cap stocks often have high growth potential compared to large cap stocks. Many experts suggest that the best small cap stock for long term can perform.

Fairly Priced

As domestic and foreign institutional investors (DIIs and FIIs) often focus on large cap stocks, undervalued small cap stocks remain fairly priced, allowing retail investors to find value opportunities.

Diversification

Investing in the top small cap shares or high-growth small cap stocks can diversify your portfolio, reducing dependence on large cap stocks.

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Factors to Consider Before Investing in Small Cap Stocks

Company's Growth

Analysing a company’s growth involves checking its earnings and cash position. While small cap companies often have limited cash flow, you can look for good annual revenue and positive operating margins, which may indicate the company’s ability to turn sales into profits. Remember that both short and long-term small cap stocks might operate at a loss initially, so assessing their long-term growth potential is crucial.

Financial Ratios

To understand the company’s financial health, You can evaluate key ratios like debt-to-equity, return on Equity (ROE), and profit Margins. These ratios can provide insights into operational efficiency and small cap stock returns, which is vital when selecting the best small cap stocks.

Competitive Advantage

You can search for the small cap stock market leaders among small cap stocks and check if the company has a clear competitive edge or unique positioning within its industry. The top small cap stocks with strong market positioning often show better growth potential in small cap stock trends.

Market Position

You can also consider how well the company is positioned in its market segment. Companies listed in the Nifty smallcap index or included in a reputed small cap stocks list often have proven business models.

Frequently Asked Questions on Small Cap Stocks

  1. 1. What is a small cap stock?

    Shares of companies having a market capitalisation of less than ₹5,000 cr. are small-cap stocks. In other words, these are issued by small cap companies in India. These are ranked 251 and above in the stock market.

  2. 2. How to find good small cap stocks?

    One of the easiest, quickest, and simplest ways to find small-cap stocks is using Tickertape. Using its intuitive Stock Screener, which is built with over 200+ filters, you can get a list of NSE small-cap stocks based on your desired parameters. All you have to do is launch the Tickertape Stock Screener and add your desired filters, such as total debt, net profit margin, and so on. There you go, you have a list of small cap sector stocks in India in no time! What’s more, you can add multiple small-cap shares to your Basket and buy/sell them at once using the Transactions feature.

  3. 3. How to get a list of small-cap IT stocks?

    You can get the list of small-cap IT stocks on Tickertape with just two clicks. Follow the steps below:
    1. Login to Tickertape
    2. Go to Stock Screener
    3. Select ‘Smallcap’ under the ‘Market Cap’
    4. Under the ‘Sector’ select ‘Information Technology’

  4. 4. How to get a list of debt-free small-cap stocks in India?

    You can get the list of debt-free small cap dividend stocks in India by following the steps below:
    1. Login to Tickertape
    2. Go to Stock Screener
    3. Select ‘Smallcap’ under the ‘Market Cap’
    4. Click on ‘Add Filter’
    5. Search for ‘Total Debt’
    6. Sort the ‘Total Debt’ from low to high and get the list of small-cap stocks with no debts.

  5. 5. What are some of the risks of small cap stocks?

    Even the best-performing small cap stocks are prone to higher small cap stock volatility, thinner liquidity, and often operate under less robust governance standards. They typically have limited track records, fewer resources, and face greater challenges securing financing. Minimal analyst coverage and reliance on niche markets further amplify risks, making thorough, ongoing research and portfolio diversification essential.