1. What is a small cap stock?

Shares of companies having a market capitalisation of less than Rs. 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. 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 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. How to get the 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: Login to Tickertape Go to Stock Screener Select ‘Smallcap’ under the ‘Market Cap’ Under the ‘Sector’ select ‘Information Technology’

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

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

5. Which are some of the best small-cap stocks to buy today?

You can use Tickertape’s Stock Screener to filter the best small-cap stocks based on parameters that matter to you. Once you get a list of the top 10 small cap companies in India, use Tickertape’s Stock Pages to analyse individual stocks in order to make well-informed investment decisions.

Best Small Cap Stocks To Invest 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

Analyse small cap stocks further

Visit 'Small Cap Stocks' Screener

Overview of the Best Small Cap Stocks For 2024

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, small cap stocks remain fairly priced, allowing retail investors to find value opportunities.

Diversification

Investing in small cap stocks can diversify your portfolio, reducing dependence on large cap stocks.

Download Now

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 should look for good annual revenue and positive operating margins, which may indicate the company’s ability to turn sales into profits. Remember that small cap companies 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 small cap share price, debt-to-Equity, return on Equity (ROE), and profit Margins. These ratios can provide insights into operational efficiency, which is vital when selecting the best small cap stocks.

Competitive Advantage

Search for the market leader among small cap stocks and check if the company has a clear competitive edge or unique positioning within its industry. Small cap stocks with strong market positioning often show better growth potential.

Market Position

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.

Popular Stock Collections

Popular Mutual Fund Collections

Frequently Asked Questions on Small Cap Stocks

1. What is a small cap stock?
Shares of companies having a market capitalisation of less than Rs. 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. 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 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. How to get the 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. How to get debt-free small-cap stocks in India?
You can get the list of debt-free small-cap 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. Which are some of the best small-cap stocks to buy today?
You can use Tickertape’s Stock Screener to filter the best small-cap stocks based on parameters that matter to you. Once you get a list of the top 10 small cap companies in India, use Tickertape’s Stock Pages to analyse individual stocks in order to make well-informed investment decisions.