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Top Smallcap Stocks to Buy in India for 2024

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.

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

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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.


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.