best microcap stocks India
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Microcap companies are those companies which have market capitalization within the range of INR1000 crore to INR1500 crore in India. Some analyst also consider the companies outside the top 500 companies in the stock exchange are microcap companies. NSE also provides a list of microcap stocks that is Nifty Microcap stocks list a part of Nifty microcap stock index. You can get the list of 250 stocks in Nifty microcap 250 index.
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Why Nifty Microcap Stocks
Microcap stocks are small cap companies that often falls sharply along with broader market. However, these are the stocks that returns better than the broader market in a bull market. Microcap stocks often becomes midcap and large cap. These small cap companies can give multibagger returns.
Investors can identify hidden gems with promising business models, innovative products, or groundbreaking technologies in this segment. With proper due diligence, if invest in these companies, it can be great wealth creator for you.
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Microcap stocks 2024
In this article, we have considered the companies which are part of the Nifty Microcap 250 Index. We have finalized the below nifty microcap stocks based on certain criteria as below.
We have considered the below criteria to finalize the microcap stocks to buy.
- ROCE > 15%
- Yearly PE < EPS
- Debt to Equity ratio < 1
- This yearly gross sales > Last year gross sales
- Yearly PE ratio < Quarterly EPS after extraordinary items diluted
- Yearly Return on Net worth percentage > 20%
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Best Microcap stocks India
Investing in microcap stocks are often risky. These companies often face challenges from big players and have greater business and financial risks compared to larger, more established companies. Additionally, the lack of availability of research, analyst coverage on these companies makes it difficult for investors to get the benefit effectively. However, with proper due diligence, investors can maximize their profit investing in microcap stocks.
Microcap stocks with huge growth potential
Below are the microcap stocks with huge growth potential and strong tail winds. The Paper industry, textile, chemical, and auto Industry has strong potential to grow after the general election. Please comments if you need further details on these companies.
Microcap stocks to buy
| Microcap stocks with huge growth potential | Symbol |
|---|---|
| Lg Balakrishnan & Bros Limited | LGBBROSLTD |
| G R Infraprojects Ltd | GRINFRA |
| Ghcl Limited | GHCL |
| Sharda Motor Industries Limited | SHARDAMOTR |
| Share India Securities Ltd | SHAREINDIA |
| H.G. Infra Engineering Ltd | HGINFRA |
| Nava Ltd | NAVA |
| West Coast Paper Mills Limited | WSTCSTPAPR |
Final Words
While investing in microcap stocks are challenging, with proper research investors can often get hidden gems and can have stronger returns and portfolio diversification. In the long term these microcap stocks can be a great wealth creator for Investors.
Frequently Asked Questions
What is microcap stocks
Microcap stocks are those companies with market cap between INR 1000 crore to INR 1500 crore. Some analyst believe that the stocks beyond the list of Nifty 500 index falls under microcap stocks.
What is Nifty Microcap 250 stocks
NSE developed an index named microcap 250 stocks index. This index consists of 250 nifty microcap stocks listed in Indian exchanges.
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