Smallcap stocks have a lower market capitalisation in comparison to largecap stocks. As per market regulator's categorization, companies which have a market capitalisation below Rs 50 bn are considered as smallcap stocks.
Smallcap companies tend to offer higher growth potential as compared to larger companies, but they also tend to be more volatile.
Historically, smallcap stocks have outperformed during times of economic recovery.
Investors with an appetite to take on some high risk and looking to make multibagger returns may consider investing in undervalued smallcap stocks.
Here are some factors you should consider while investing in smallcap stocks:
Take a look at some of the best smallcap stocks to buy.
Alternatively, you can browse through the Equitymaster stock screener to access an exhaustive list of smallcap stocks using a variety of filters like low debt to equity, high growth, high ROE, low PE ratio.
Happy smallcap investing!
Apr 17, 2024
This company has an established market position with one-third market share in the domestic transformer oil and white oil segments.
Apr 9, 2024
Find out why the seasoned investor took a bearish stance on these two stocks.
Mar 20, 2024
Promoter holding of these five stocks surge in March as smallcap stocks tumble. More details inside.
Mar 19, 2024
The market regulator administered stress tests on midcap and smallcap funds. Should you worry?
Mar 18, 2024
The optimism over midcap and smallcap stocks has come down as mutual funds reduced holdings and even completely exited several smallcap stocks.
Mar 13, 2024
The promise of chaos in the small cap space is playing out nicely. The BSE smallcap index has fallen over 5% in less than a week.
Feb 15, 2024
The company is sitting on a massive order book and currently completing contracts worth Rs 25 billion from Indian Railways and various power sector PSUs.
Feb 13, 2024
As the wave of disruption catches up, the businesses can't afford to be in a no change zone. Here's how to ride and benefit from the tech shift shaking up global landscape.
Jan 27, 2024
These 5 stocks have caught the attention of foreign institutional investors In Q3.
Jan 19, 2024
These three stocks recently hit their all-time high. Data suggests there's still a lot of steam left in the rally.
Apr 11, 2024
Here are five stocks that display promising potential for growth and value appreciation in the upcoming year.
Mar 24, 2024
These top-performing stocks have experienced a decline in the recent market crash. Should you buy?
Mar 20, 2024
Sunil Singhania takes a bite of this rice stock. Should you too?
Mar 19, 2024
Are smallcaps in bubble territory? Find out...
Mar 17, 2024
Despite the recent correction in smallcaps, these companies have delivered over 200% returns in 2024 so far. Do you hold any?
Feb 22, 2024
The company is first private player to foray into Nano Urea. Boosting growth or risky expansion?
Feb 14, 2024
If identified early, breakout stocks can be lucrative investments if the momentum sustains.
Feb 2, 2024
There smallcaps deserve a place on your watchlist.
Jan 25, 2024
Promoter holding of these five stocks surge in Q3. More details inside.
Jan 10, 2024
Shares of the company have already shot up by 50% in the past five days.