Nifty Smallcap250 Quality 50

The table below shows Nifty Smallcap250 Quality 50 based on the Highest Market Capitalization.

To know more about the Nifty Smallcap250 Quality 50, refer: Nifty Smallcap250 Quality 50.

Nifty Smallcap250 Quality 50 Meaning

Nifty Smallcap250 Quality 50 is an index comprising the top 50 high-quality stocks from the Nifty Smallcap 250 index, selected based on their quality scores. The quality score is calculated considering return on equity, financial leverage, and earnings variability, which helps identify fundamentally strong companies.

This index reflects the performance of small-cap companies that exhibit stability and high quality in their financial records. It aims to provide investors with an insight into small-cap companies that are financially healthy and have consistently shown good financial performance.

By focusing on quality metrics, the Nifty Smallcap250 Quality 50 index provides a more refined investment landscape within the small-cap category. This helps investors who are looking for potential growth opportunities in smaller companies but with a reduced risk profile due to their proven financial stability.

Features Of The Nifty Smallcap250 Quality 50

The main features of the Nifty Smallcap250 Quality 50 include a focus on quality, stability, and performance consistency. It selects companies with strong financial health, based on criteria like return on equity, debt-to-equity ratio, and earnings variability, offering a diversified portfolio within the small-cap segment.

• Quality Focus: The Nifty Smallcap250 Quality 50 emphasizes high-quality stocks, chosen for their robust financial metrics. Companies included have strong returns on equity and consistent earnings, ensuring only the most financially sound small-cap companies are selected, enhancing the reliability of investments in the volatile small-cap sector.

• Stability Indicator: This index prioritizes stability by selecting companies with low financial leverage and high earnings stability. It offers investors a safer entry into the small-cap market, where price fluctuations are frequent but mitigated by the quality of the chosen companies.

• Performance Consistency: Firms in this index are recognized for their consistent performance, not just in profitability but also in maintaining operational efficiency. This consistency helps in building a portfolio that is less susceptible to market downturns, making it a prudent choice for long-term investors.

• Diversified Exposure: Despite focusing on small-cap stocks, the index offers a diversified mix of sectors. This diversification helps spread risk and tap into various growth avenues across different industries, increasing the potential for substantial returns.

• Benchmarking Tool: For investors and fund managers, the Nifty Smallcap250 Quality 50 serves as a benchmark to measure the performance of high-quality small-cap stocks. This facilitates better portfolio management and strategy formulation based on comparative analysis with the market.

Nifty Smallcap250 Quality 50 Stocks Weightage

The table below shows Nifty Smallcap250 Quality 50 Stocks based on the Highest Weights.

Nifty Smallcap250 Quality 50 Stocks

The table below shows Nifty Smallcap250 Quality 50 Stocks based on the 1-year return. 

How To Buy Nifty Smallcap250 Quality 50?

To invest in the Nifty Smallcap250 Quality 50 through Alice Blue, you would start by setting up an account with them. Once your brokerage account is active, you can search for ETFs or mutual funds that track this index directly on their platform.

Through Alice Blue, you can access a wide range of investment options, including ETFs and mutual funds that focus on the Nifty Smallcap250 Quality 50. This provides a straightforward way to diversify your portfolio by investing in small-cap companies recognized for their quality metrics.

Alice Blue offers tools and resources that can help you monitor your investments and make informed decisions. Using their platform, you can track the performance of your investments in the Nifty Smallcap250 Quality 50 and adjust your strategy as needed to meet your financial goals.

Advantages of Nifty Smallcap250 Quality 50

The main advantage of the Nifty Smallcap250 Quality 50 is its focus on quality small-cap stocks, offering the potential for higher returns. It filters for financial health and performance consistency, providing a safer, diversified investment avenue in the typically volatile small-cap sector.

• Quality Over Quantity: The Nifty Smallcap250 Quality 50 selectively includes companies with robust financial health, focusing on long-term stability and consistent earnings. This approach reduces the inherent risk typically associated with small-cap investments.

• Enhanced Potential for Growth: Small-cap stocks offer significant growth potential. This index curates a pool of high-quality small-caps, which are more likely to sustain growth and profitability compared to their peers, providing an attractive growth trajectory for investors.

• Diversification Benefits: Investing in this index diversifies risk across various sectors within the small-cap universe. It spreads exposure across different industries, mitigating sector-specific risks and enhancing portfolio stability.

• Reduced Volatility: By focusing on quality, the index inherently selects companies that are less volatile. This selection criterion helps in smoothing out the price fluctuations that are common in small-cap stocks, making it a more palatable option for risk-averse investors.

• Accessible Investment: The index is tracked by ETFs and mutual funds, making it easily accessible to individual investors without the need to directly analyze and invest in each stock. This ease of access is crucial for investors looking to tap into the small-cap market efficiently.

Disadvantages of Nifty Smallcap250 Quality 50

The main disadvantage of the Nifty Smallcap250 Quality 50 is its limited scope, focusing solely on small-cap stocks, which are inherently riskier and more volatile than large-cap stocks. This focus can lead to increased sensitivity to market downturns and potentially higher investment risk.

• Higher Volatility Risks: The Nifty Smallcap250 Quality 50 comprises small-cap stocks that are typically more volatile than their large-cap counterparts. This can lead to larger swings in portfolio value, particularly in turbulent market conditions, posing a higher risk for investors.

• Market Sensitivity: Small-cap stocks in the index may react more sharply to economic changes and market disruptions. This sensitivity can result in significant short-term losses, especially during economic downturns or market corrections.

• Limited Liquidity: Stocks in the Nifty Smallcap250 Quality 50 may have lower trading volumes compared to larger companies. This limited liquidity can make it difficult to execute large trades without affecting the stock price, complicating entry and exit strategies.

• Concentration Risk: Although the index filters for quality, it still holds a concentrated portfolio of just 50 stocks. This concentration can expose investors to significant risk if even a few of the stocks perform poorly.

• Growth Constraints: Despite their high quality, the small-cap nature of the stocks might limit their growth opportunities compared to larger companies with more resources and established market presence. This could potentially cap the upside gains from investments in this index.

Introduction to Top Nifty Smallcap250 Quality 50

Apar Industries Ltd

The Market Cap of Apar Industries Ltd is ₹32,244.51 crore. It achieved a monthly return of 8.43% and a remarkable annual return of 184.79%. The stock is only 4.35% away from its 52-week high.

Apar Industries Ltd stands as a key player in the conductors and specialty oils sectors, catering to diverse needs in electrical and metallurgical engineering. Their product range extends across power transmission conductors, petroleum specialty oils, and power and telecom cables, underpinning the infrastructure and energy sectors globally.

With manufacturing plants across Maharashtra, Gujarat, Orissa, and Dadra & Nagar Haveli, the company offers value-added products like transformer oils, white oils, and petroleum jellies. Apar Industries is recognized for its innovative solutions and commitment to quality, driving growth and sustainability in its industry.

360 ONE WAM Ltd

The Market Cap of 360 ONE WAM Ltd is ₹29,607.60 crore. This company has seen a monthly return of 2.24% and an annual rise of 82.92%. It is 12.32% away from its 52-week high.

360 ONE WAM Ltd is dedicated to superior performance and client-centric solutions, ensuring long-term investment success. The company’s culture focuses on innovation, responsiveness, and a personalized approach, aiming to provide clients with an edge in their financial pursuits.

Every day, 360 ONE embodies its commitment through proactive customer service and a culture that promotes continuous success and value creation. Their efforts are geared towards meeting and exceeding the expectations of all stakeholders, living the values that define their corporate identity.

Gillette India Ltd

The Market Cap of Gillette India Ltd is ₹22,458.71 crore. It recorded a monthly return of 12.62% and a yearly return of 68.50%. The stock is only 3.75% away from its 52-week high.

Gillette India Limited operates primarily within the grooming and oral care sectors, providing a wide range of consumer goods including razors, blades, and oral care products. The company’s grooming segment is famous for its innovative shaving systems and cartridges.

With products designed for precision and comfort, such as the Gillette Guard Shaving Razor and Fusion Razor, Gillette India caters to the evolving needs of consumers. Their offerings extend to shaving gels and aftershave products, solidifying their market position as leaders in male grooming.

Central Depository Services (India) Ltd

The Market Cap of Central Depository Services (India) Ltd is ₹22,420.99 crore. It has achieved a monthly return of 4.04% and a yearly return of 108.56%. The stock is 5.87% away from its 52-week high.

Central Depository Services (India) Ltd offers comprehensive depository services, including dematerialization, rematerialization, and secure transaction execution. It caters to a wide range of investor needs, facilitating efficient management of securities.

The company provides innovative solutions like e-voting and electronic KYC storage, enhancing the accessibility and efficiency of capital market operations. Their services support the seamless execution of transactions and secure maintenance of investor records, essential for the integrity of financial markets.

Amara Raja Energy & Mobility Ltd

The Market Cap of Amara Raja Energy & Mobility Ltd is ₹22,148.81 crore. It has seen a significant monthly increase of 24.86% and a year-on-year growth of 113.14%. The stock is currently 14.90% away from its 52-week high.

Formerly known as Amara Raja Batteries Limited, the company is a leading manufacturer of automotive and industrial batteries. Their product range extends to sectors including telecom services, railways, power, and other industrial applications under well-recognized brands like Amaron and PowerZone.

The company is not only a staple in automotive battery manufacturing but also a pivotal player in the industrial battery sector with products catering to varied needs such as UPS systems and power solutions. Their extensive network ensures a strong presence across domestic and international markets, fostering robust growth and innovation in energy solutions.

Finolex Cables Ltd

The Market Cap of Finolex Cables Ltd is ₹19,616.00 crore. This company has recorded an extraordinary monthly return of 52.40% and an annual increase of 91.55%. It is just 2.22% away from reaching its 52-week high.

Finolex Cables Limited is renowned for its extensive range of electrical and communication cables. The company serves a wide market with products essential for modern infrastructure, including electrical cables and systems for buildings, industries, and telecommunications.

The product portfolio is diverse, ranging from optical fiber cables to electrical wires and home appliances, ensuring Finolex stays at the forefront of technological advancement and market demands. Their commitment to quality and innovation continues to drive their leadership in the cable manufacturing industry.

Cyient Ltd

The Market Cap of Cyient Ltd is ₹19,240.51 crore. The company has seen a substantial monthly growth of 12.52% and an annual rise of 26.16%. It is currently 30.13% away from its 52-week high.

Cyient Limited specializes in engineering, manufacturing, and digital technology solutions across global markets, including aerospace, automotive, energy, and healthcare. Their services emphasize enhancing client capabilities and reaching new efficiencies through digital transformation.

Cyient’s strategy includes investing in cutting-edge technology to deliver solutions that meet complex engineering and operational challenges. Their broad service offerings in digital and technology platforms underline their commitment to innovation and excellence in a rapidly evolving industry landscape.

Castrol India Ltd

The Market Cap of Castrol India Ltd is ₹19,095.01 crore. It has achieved a monthly return of 6.08% and a yearly growth of 71.01%. The stock is 12.98% away from its 52-week high.

Castrol India Limited leads in the production and marketing of automotive and industrial lubricants. The company’s extensive product line includes engine oils, specialty fluids, and services that support a wide range of industries and consumers.

Their commitment to sustainability and technological advancement drives continuous improvement in product efficiency and environmental performance. Castrol’s robust distribution network ensures its presence in every corner of the automotive market, reinforcing its position as a trusted brand in lubricants and associated services.

Affle (India) Ltd

The Market Cap of Affle (India) Ltd is ₹17,202.02 crore. The company has experienced a notable monthly return of 15.83% and an annual increase of 25.08%. It is 6.53% away from its 52-week high.

Affle (India) Limited is a global technology leader specializing in mobile advertising and marketing platforms. Their innovative consumer intelligence system allows for enhanced user engagement through targeted advertising and analytics.

Their solutions empower businesses to acquire, engage, and transact with consumers more effectively through mobile. Affle’s commitment to innovation and customer-centric solutions drives its growth, positioning it as a key player in the digital advertising space.

Birlasoft Ltd

The Market Cap of Birlasoft Ltd is ₹17,064.65 crore. The company has seen a strong monthly growth of 15.70% and an impressive yearly gain of 100.43%. It is 27.13% away from its 52-week high.

Birlasoft Limited provides comprehensive IT solutions, ranging from digital and cloud services to enterprise solutions. Their expertise spans key industries, helping clients navigate digital transformations and achieve enhanced operational efficiency.

Their strategic focus on digital services, including analytics, cloud computing, and application management, positions Birlasoft as a partner of choice for global enterprises looking to innovate and scale. Their commitment to technological excellence and client satisfaction continues to drive their success in the IT sector.

Nifty Smallcap250 Quality 50 – FAQs  

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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.