It’s crucial to have a good investing plan in place before you engage in the stock market. The types of companies you want to buy, the industries you want to invest in, and the market cap range you wish to include in your portfolio are all things you need to decide. The small-cap stocks market is one of these options.
Several small-cap shares are available on the Indian financial market for interested investors. Before learning about the top percentages in this market area, read the definition of small-cap stocks in the section below.
What Are Small Cap Stocks?
Small-cap stocks are part of the stock market with a smaller market capitalization than large-cap stocks. Their market capitalization usually defines them. The value of shares outstanding is multiplied by the number of shares outstanding.
Market capitalization is usually less than INR 500 billion, but sometimes more. The purpose of small-cap stocks is to provide investors with an opportunity to gain exposure to companies not included in large-cap indices. These stocks are tend to be more volatile than large companies but have higher growth potential.
Five Small-cap Stocks to Invest in This Year
Check out some of the best small-cap stocks this year to add to your portfolio.
1. Ujjivan Financial Services
Ujjivan Financial Services is an India-based microfinance company. Founded in 2004 and headquartered in Bengaluru. The Company now offers financial products and services to under served populations, especially low-income groups and women. Services provided by Ujjivan include micro-credit, savings accounts and insurance products.
The Company’s market price on January 16 2023, was ₹267. Over the past six months, Ujjivan Financial Services’ share price has risen nearly 70%, making it one of the best small-cap companies available today.
2. Exports of Gokarna
Gokaldas Exports Limited is India’s leading textile and garment manufacturer and exporter. The Company was founded in 1979 and is headquartered in Bengaluru. Today, the Company is one of India’s largest ready-to-wear garment exporters, with a strong presence in the US and European markets. The Company offers a wide range of products, including shirts, trousers, shorts, skirts and dresses for men, women and children.
Gokaldas Exports’ current market price is ₹377 as of January 16 2023, up almost 12% in the last six months.
3. Bajaj Consumer Care
Bajaj Consumer Care Limited is an Indian consumer goods company that manufactures and markets personal care and home care products. The Company is part of the Bajaj Group, one of India’s most diverse and respected conglomerates.
The Company’s product portfolio includes toilet soap, liquid soap, hair oil, hair gel and talc powder. The Company also has a strong distribution network across India, making its products available in most retail outlets and supermarkets. In addition, the Company’s products include several well-known and trusted brands, such as Bajaj Almond Drops Hair Oil, Bajaj No Marks Cream and Bajaj Brahmi Amla Hair Oil. With a share price of around ₹173 on January 16 2023, the Company has recorded a share price gain of about 7% over the past six months.
Delta Corp Limited is a leading Indian gaming and hospitality company. Founded in 1996 and headquartered in Mumbai, India, the Company operates multiple casinos, offshore gaming vessels, and luxury resorts and hotels.
Delta Corp is the only Company with a national licence to operate live and electronic games in India. The Company mainly operates through the casino and hospitality segments. Delta Corporation has also received numerous prestigious awards and certifications for its commitment to quality, customer service and corporate responsibility.
As of January 16, 2023, the Company’s share price was worth ₹211 to him, up around 20% over the past six months.
5. Thyrocare Technologies Ltd
Thyrocare Technologies Limited is India’s leading diagnostics company providing various testing services to individuals and organisations. The Company was founded in 1996 and is headquartered in Mumbai, India.
The Company offers various diagnostic tests and services, including clinical pathology, biochemistry, haematology and histopathology solutions.
The market price of the Company’s shares on January 16, 2023, was ₹566. Over the past six months, Thyrocare Technologies Ltd share price has grown tremendously over the past six months, also reaching the level ₹700.
What Benefits Can You Get from Buying the Best Small Cap Shares?
You gain a lot of advantages from investing in small-cap shares. The following are just a few of the top benefits of adding the best small-cap shares in your portfolio:
- Exponential growth potential
- Excellent possibility for portfolio diversification
- Reduced costs and capital requirements
- Opportunities for investors to make investments that are undervalued and frequently undeveloped
Small-cap stocks are the ones that still need to join the list of well-liked large-cap or big organisations. Small Caps are typically unproven businesses with massive room for future expansion. Any investor wishing to buy into the Indian stock market will find that each of the small-cap best stocks discussed in this article has tremendous growth potential.