Best Small Cap Stocks in India

March 17, 2023

Small Cap Stocks – Shall They Be Considered for Higher Return With Smaller Investments???

The below table shows the small cap stocks in India based on the highest market capitalization.

SL No.Stock NameMarket Cap (₹ Crores)Close Price (₹)
1Affle (India) Ltd16,784.591,260.00
2Blue Dart Express Ltd16,645.867,015.30
3Ajanta Pharma Ltd16,644.101,299.05
4Gillette India Ltd16,614.555,098.80
5IIFL Finance Ltd16,487.39416.95
6Kajaria Ceramics Ltd16,432.801,032.00
7Nippon Life India Asset Management Ltd16,318.37261.90
8Aptus Value Housing Finance India Ltd16,025.41321.80
9Aavas Financiers Ltd15,986.652,034.70
10Piramal Pharma Ltd15,966.60139.50

It is said that if you want to grow big, you need to start small. When it comes to investment, Small Cap stocks are an excellent choice. They are pretty low on prices and can attract a large number of shares in a smaller investment.

But, you should also be aware about the risk factors involved with them. You will read about them in the article below. 

This article is all about the best small cap stocks. To make the information clear, concise, and easy to understand, we have explained the topic in the following ways.


What is a Small Cap Stock?

Small cap stocks are stocks whose market capitalization is below Rs 5,000 Crore. It is quite surprising to note that 95% of the companies listed in the stock market are small cap companies.

If you are still wondering about market capitalization, we won’t keep you hanging!

Market capitalization is the total market value of a company’s outstanding shares (Shares held by investors) with respect to the current market price of the share.

Let’s understand this with an example; suppose Sanjay’s Bakery has 10,000 outstanding shares and the current value of each share is Rs 20.

Market Cap = 10,000 x 20 = Rs 2,00,000 

Also, the market capitalization of a company changes based on the current value of its shares. 

The returns from small cap stocks are completely driven by the stock market performance. But these stocks are one of the high-yielding investment options and there’s more to the features of small cap stocks.

  • Their volatile nature makes them the favorite stocks among intraday traders.
  • As the share prices are low, in small investments, one can take a large number of shares, and little advancement in the prices can give huge returns.
  • The cost of investment is significantly less compared to mid cap stocks and large cap stocks.

As said earlier, the risk factors of the small cap stocks:

  • These stocks are very volatile in nature and can be really susceptible to the stock market fluctuations.
  • The liquidity is quite low compared to the large cap and mid cap stocks. There might be chances that you may not be able to buy the desired number of shares at a point and also you may not be able to sell the shares when you want to.

Learn about other stocks based on market capitalization.

Large Cap Stocks
Mid Cap Stocks

Best Small Cap Companies/Stocks in India

The below tabular representation depicts the best small cap stocks list. You may also find a brief introduction about these companies as you read through the article.

SL No.Stock NameMarket Cap (₹ Crores)Close Price (₹)1Y Return (%)
1Kaiser Corporation Ltd309.9462.008,511.11
2Raj Rayon Industries Ltd1,620.7728.858,142.86
3Sel Manufacturing Company Ltd1,886.69569.405,740.00
4Sejal Glass Ltd260.63258.055,061.00
5Bohra Industries Ltd9.14141.353,112.50
6Ambar Protein Industries Ltd341.18593.352,982.34
7Gensol Engineering Ltd1,861.371,523.351,998.28
8Alliance Integrated Metaliks Ltd487.1442.201,783.93
9Hemang Resources Ltd72.8655.201,771.19
10S & T Corporation Ltd277.57436.001,735.79

1. Kaiser Corporation Ltd

Printing is one of the many activities that Kaiser Corporation Ltd. is involved in. Some of their products include labels, articles of stationery, magazines, and cartons. Through one of its subsidiaries, the company has also expanded into the Turnkey Projects Management field.

2. Raj Rayon Industries Ltd

Raj Rayons Industries Ltd. is a manufacturing and trade company that has been in business since 1993. The company specializes in polyester chips, polyester yarn, and processed yarn.

Products offered by the company include yarn with a variety of cross sections, specifically Round, Trilobal, and Octalobal, as well as Full Dull, Semi Dull, Bright Yarns, Cationic Yarn, Doped Dyed Yarn, Fire Retardant, and Anti Microbial yarns, etc., in the following forms: a) Polyester Textured Yarn b) Partially Oriented Yarn c) Fully Drawn Yarn.

3. Sel Manufacturing Company Ltd

The year 1969 marked the establishment of Sel Manufacturing Ltd., which today engages in the production, processing, and commercialization of yarn, fabric, ready-made clothes, and towels.

The corporation is a textile conglomerate that produces a variety of different products, including but not limited to:

  • knitted garments
  • Towels Made of Terry
  • Fabrics that are Knitted and Processed
  • a wide variety of types of yarns

4. Sejal Glass Ltd

Tempering, designing, insulating, and laminating glass are some of the value-added products that Sejal Glass manufactures as part of its core business.

The manufacturing plant for insulating glass was constructed in the year 2000-01, marking the beginning of the company’s foray into the commercial sector. In 2001, it initiated a second procedure for producing toughened glass as a move in the right direction. Since then, the company has increased its production capacity by installing an automated lamination line in January of 2007. The processing of a variety of value-added glasses for exterior and interior applications, including decorative glass, is one of the ways that the company has expanded the scope of the business operations it engages in.

5. Bohra Industries Ltd

Bohra Industries is a manufacturer and trader of single super phosphate.

6. Ambar Protein Industries Ltd

Ambar Protein Industries was created in the year 1992 in the city of Ahmedabad with the intention of supplying the people of Gujarat with high-quality edible oil marketed under the brand name Ankur. Ankur Refined Cottonseed Oil, Ankur Refined Sunflower Oil, Ankur Refined Soybean Oil, and Ankur Refined Corn Oil are some of the products that are included in the product range of the company. The assortment of packaging options include a 15-kilogram can, a 15-liter jar, a 5-liter jar, a 2-liter jar, and a 1-liter pouch.

7. Gensol Engineering Ltd

Solar consulting and engineering, procurement, and construction are the primary focuses of Gensol Engineering Ltd.

Solar advice, solar engineering, procurement, and construction; solar operations and maintenance; and solar monitoring and analysis are all part of the company’s offerings. In addition to this, it offers specialized consulting services for EHV transmission lines (extra-high voltage transmission lines).

8. Alliance Integrated Metaliks Ltd

Alliance Integrated Metaliks is a manufacturer of structural metal products. The company was established in 1989. The company is in the business of fabricating and supplying associated heavy steel structures and equipment, which it then uses in the production of a wide variety of metal structures and parts of metal structures.

9. Hemang Resources Ltd

Hemang Resources Limited was established in 1993 and is currently involved in the trade of various types of coal, as well as stevedoring, logistic services, and trading in land.

10. S & T Corporation Ltd

S & T Corporation Ltd. is a company that specializes in the construction and textiles industries. It was established in 1984.

List of Small Cap Stocks in NSE

If you are paying close attention to the article, you may have noticed that the table above of the top small-cap stocks was exactly the same as the table below. So, this is done deliberately to compare different tables in one go.

SL No.Stock NameClose Price (Rs)

List of BSE Small Cap Stocks

You may find the list of best small cap stocks in BSE in the below table. The classification criteria is based on the market capitalization, along with the closing price and 1-year return.

SL No.Stock NameClose Price (Rs)

List of Top Small Cap FMCG Stocks

You might have heard of FMCG stocks orFast Moving Consumers Goods Stocks;if not, click on this link to find more about it. The below table contains the best small cap stocks list in the FMCG sector.

SL No.Stock NameMarket Cap (Rs Crores)Close Price (Rs)1Y Return (%)
1M K Proteins Ltd647.931,553.501,049.46
2Northern Spirits Ltd378.01235.50720.56
3Kore Foods Ltd12.9411.11291.2
4Rama Vision Ltd43.6645.10173.33
5Vadilal Industries Ltd1,594.332,218.10136.94
6Lotus Chocolate Company Ltd144.46112.50127.5
7Muller and Phipps (India) Ltd15.66254.95113.88
8Dangee Dums Ltd363.3823.6077.71
9Milkfood Ltd293.87601.4065.67
10Hindustan Foods Ltd6,863.21607.7561.2

List of Top Small Cap Pharma Stocks

The table below represents the best small cap stocks list in the pharma sector. If you wish to know more about pharma companies and their stocks, click here

SL No.Stock NameMarket Cap (Rs Crores)Close Price (Rs)1Y Return (%)
1Syschem (India) Ltd143.5447.00358.09
2Natural Capsules Ltd480.87544.00233.13
3Maitri Enterprises Ltd14.1232.10220.68
4Shukra Pharmaceuticals Ltd26.07166198.83
5Panchsheel Organics Ltd340.90289.35194.86
6Sunil Healthcare Ltd114.55111.70180.3
7Vaishali Pharma Ltd101.0995.85174.25
8Zim Laboratories Ltd544.67345.55167.35
9Fredun Pharmaceuticals Ltd550.531,219.40160
10Colinz Laboratories Ltd12.4949.6150.51

Here are some of the Best Stock Research Articles listed based on Top Sectors (Industries), Market Cap, and Fundamental Analysis Factors:

Shares Below 50
Metal Stocks
Best Index Funds in India
Shares below 10
Top 10 FMCG Companies in India

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.

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