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Best Smallcap Stocks in India

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:

  • Earnings Growth - Only companies with long-term growth potential will succeed over time.
  • Investment Horizon - Investing in smallcap companies are usually a long-term bet. Don't expect overnight gains.
  • Risk and volatility - Smallcap companies are usually risky investments as compared to larger/well-known companies and their share price can change dramatically over short periods of time.
  • Returns - Smallcaps can provide higher returns than largecap stocks. However, returns are usually inconsistent.

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!


This Smallcap Stock Could Profit from India's EV, Transformer, and Data Centre Gold Rush

Apr 17, 2024

This company has an established market position with one-third market share in the domestic transformer oil and white oil segments.

Mohnish Pabrai Trims Stake in Smallcap Realty Stock, Exits Chemical Company

Apr 9, 2024

Find out why the seasoned investor took a bearish stance on these two stocks.

Insider Trades for March 2024: Promoters Buy the Dip in These 5 Smallcap Stocks

Mar 20, 2024

Promoter holding of these five stocks surge in March as smallcap stocks tumble. More details inside.

What is a Stress Test in the Stock Market? And How Does It Affect Your Portfolio?

Mar 19, 2024

The market regulator administered stress tests on midcap and smallcap funds. Should you worry?

Top 5 Stocks Mutual Funds Bought and Sold in February 2024

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.

Why Small Cap Stocks are Falling

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.

Why Salasar Techno Engineering Share Price is Falling

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.

Smallcap Stocks Set to Ride Tech Disruption

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.

FIIs are Buying these 5 Smallcap Stocks. Take a Look...

Jan 27, 2024

These 5 stocks have caught the attention of foreign institutional investors In Q3.

Top 3 Breakout Stocks to Watch Out (One of Them Looks Undervalued)

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.

Top 5 Undervalued Smallcap Stocks to Watch Out for in FY25

Apr 11, 2024

Here are five stocks that display promising potential for growth and value appreciation in the upcoming year.

Top 5 Fundamentally Strong Smallcap Stocks Trading 30% Below 52-Week Highs

Mar 24, 2024

These top-performing stocks have experienced a decline in the recent market crash. Should you buy?

Sunil Singhania Picks a Promising Smallcap Stock for his Abakkus Fund

Mar 20, 2024

Sunil Singhania takes a bite of this rice stock. Should you too?

A Stock Watchlist Amid the Correction in Smallcaps

Mar 19, 2024

Are smallcaps in bubble territory? Find out...

5 Best Performing Smallcap Stocks that Rallied Over 200% in 2024

Mar 17, 2024

Despite the recent correction in smallcaps, these companies have delivered over 200% returns in 2024 so far. Do you hold any?

This Fertilizer Smallcap Stocks Forays into Crop Nutrition Segment

Feb 22, 2024

The company is first private player to foray into Nano Urea. Boosting growth or risky expansion?

Top 5 Smallcap Stocks Showing Resilience in this Falling Market

Feb 14, 2024

If identified early, breakout stocks can be lucrative investments if the momentum sustains.

Top Smallcap Stocks for Your Watchlist

Feb 2, 2024

There smallcaps deserve a place on your watchlist.

Top 5 Smallcap Stocks with Rising Promoter Holding. Here's a Watchlist...

Jan 25, 2024

Promoter holding of these five stocks surge in Q3. More details inside.

This Undiscovered Smallcap Stock is Set to Benefit from the Ram Mandir Opening

Jan 10, 2024

Shares of the company have already shot up by 50% in the past five days.