Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Top Smallcap Stocks to Buy in India for 2023

Are you looking to invest in the next Amazon, Titan or Bajaj Finserv? Then you should definitely explore your options in small-cap stocks.

Most of the big and well-known companies started out as smallcap companies. For example, Berkshire Hathaway was once a struggling textile company. No moat. No rosy financials. Just a bleak future.

Or consider Apple, Microsoft, or Facebook. All these companies started out as smallcaps. With a proper management team and presence of economic moat, these companies made big bucks for investors and are among the top companies in the world today.

What makes small-cap stocks a good investment?

Historically, small-cap stocks have outperformed during times of economic recovery.

Small-cap stocks have been known to generate over 100x return on their original value in some cases. Investors with an appetite to take on some high risk and looking to make multibagger returns may consider investments in small-cap stocks.

But here’s the thing. Smallcaps also tend to be more volatile than largecaps, as they are more vulnerable to recessions, market crashes, and other shocks. They often have bigger swings on news like earnings reports.

If you pick the right smallcap stocks in India, you could be on the fastest road to generational wealth.

To get started, check out Equitymaster’s powerful stock screener to find the best smallcap stocks in India.


Why Force Motors Share Price is Rising

Jun 5, 2023

Auto and auto ancillary stocks have seen an explosion of interest over the past couple of months. The BSE auto index is up over 21% in a little over two months.

5 High Return Smallcap Stocks to Add to Your Watchlist

May 24, 2023

Investors must keep an eye on these stocks to potentially amass a fortune in the long term.

Watch Out for These 5 Smallcap Stocks with Final Dividend Bonanza

May 15, 2023

These smallcaps are lined up for hefty final dividends. Do you own them?

Smallcap Textile Company Sets Record Date for Buyback. Participate or Not?

May 9, 2023

This textile company's share price zooms 20% in five days after announcing share buyback. More details inside...

Why Axita Cotton Share Price is Falling

May 5, 2023

After delivering multibagger returns of 400% in a year, the stock slipped 54% in five days. Here's why.

Vijay Kedia and Sunil Singhania Increase Stake in this Smallcap Textile Stock

Apr 29, 2023

Two ace investors pick additional stake in this smallcap textile company. What's brewing?

Dolly Khanna Turns Bearish on These 2 Smallcap Stocks

Apr 21, 2023

Find out why the seasoned investor trimmed her stake in these two smallcap after remaining bullish for consequent quarters.

The Smallcap Stock Ashish Kacholia is Doubling Down On. Should You Too?

Apr 14, 2023

Ashish Kacholia recently bought shares of this smallcap company. Do you own it?

Why are Smallcap Stocks Falling?

Mar 29, 2023

The smallcap index has tumbled dramatically in the past month. Here's why.

3 Charts that Explain the Rally in Momentum Stocks

Mar 6, 2023

Momentum investors should start looking for momentum stocks right now when the momentum is just starting to catch up, this way you can find momentum stocks in their upcycle.

Surprising Exit: Sumeet Nagar's Malabar India Fund Dumps 2 million Shares of this Leading Auto Ancillary Company

Jun 3, 2023

Data released on Friday showed that Sumeet Nagar's fund sold over 2 million (m) shares of this auto ancillary firm. More details inside...

Big Whale Ashish Kacholia Takes Fresh Position in this Multibagger Small-cap Stock

May 16, 2023

Here's why Ashish Kacholia bought stake in this smallcap IT management firm.

Why Apar Industries Share Price is Falling

May 10, 2023

This multibagger stock tumbled more than 14% in a single day amid profit booking. Find out its growth prospects and more.

Why TCNS Clothing Share Price is Falling

May 8, 2023

TCNS Clothing share price crashes 19% in a day, the biggest single-day drop since its IPO. Here's why.

Undervalued Gems: 5 Smallcap Stocks Hitting 52-Week Lows. Time to Take a Look?

May 4, 2023

Despite the positive sentiment in the market, these five smallcaps are trading at their yearly low. Find out why.

Multibagger Alert: Smallcap Stock Zooms Over 100% in 10 Days. What's Driving the Rally?

Apr 25, 2023

100% returns in 10 days! Is the steep rally in this smallcap stock justified?

Sumeet Nagar's Malabar India Fund Invests in a Chemical Stock that has Rallied 450% in 3 Years

Apr 18, 2023

The latest shareholding pattern of this company shows that Malabar India fund picked up a substantial stake in the March 2023 quarter.

Why Symphony Share Price is Falling

Mar 30, 2023

After hitting a nine-month high earlier this month, the stock slipped 8% in five days. Here's why.

5 Indian Smallcap Stocks Set to Grow Dramatically in 2023. Add them to Your Watchlist

Mar 8, 2023

These five smallcap stocks can grow dramatically and potentially offer decent gains in 2023.

Top Performing Smallcap Stocks of 2023 So Far

Mar 3, 2023

These smallcap stocks have given up to 60% returns in just a little over two months and that too in a volatile market. What's driving them?




FAQs

Which are the top smallcap companies in India right now?

As per Equitymaster's Indian Stock Screener, these are the top smallcap companies in India right now.

These smallcap companies have been ranked as per their market capitalization. The higher the market cap, the higher the total value of the company.

Of course, there are other parameters you should take into account before forming a hard opinion on the stock valuation.

What are smallcap stocks?

According to the market regulator, smallcap stocks are companies which rank 251st and beyond in terms of their market capitalisation.

Investing in them is perceived to be risky. However, the potential for higher returns makes them an appealing investment avenue.

What are the benefits of investing in smallcap stocks?

Smallcap growth stocks are one of the most exciting segments in the market, as small companies with higher growth rates often offer investors the opportunity for market-beating returns.

These companies are sitting on the runway, waiting to take-off. However, they usually tend to trade at a premium valuation.

If you're looking to invest in smallcap stocks, read our detailed guide to screen the best smallcap stocks.

How much should one invest in smallcap stocks?

According to us, in a scenario of ideal allocation of funds, small cap stocks should not comprise more than 10% of one's total equity portfolio.

Further, we believe that a single small cap stock should ideally not form more than 2-3% of the total portfolio.