BSE Small Cap Stock List : Small Cap Companies listed on BSE
What are Small Cap Stocks ?
What is a small cap stock? Small cap stocks are shares in small cap companies. In India, the small cap companies have a limit on market capitalization of less than Rs.5,000 Crores.
Small cap stocks are young companies approaching the growth stage fast and it is possible to trade in both BSE and NSE. The small cap stocks list usually comprises companies with small cap share prices because the firms represent their growth stage and future development. Small cap companies are really small in India but they are having high growth possibilities so most of the investors are looking for such companies. As it will be realized these small value stocks may present special opportunities owing to their promising status.
The small cap stocks are measured from the small cap index of best small cap companies in India listed in NSE with market capitalization between Rs. 500 crores and Rs. 5000 crores. That is why this index is not only a small cap IT stocks but also the index of having small cap stocks across various industries, so it therefore gives a proper picture of the small cap segment of the Indian stock market.
Hence purchasing good small cap stocks in the Indian market is a form of investment that needs research.NSE high growth small cap stocks by sector and get selected good stocks for investment.India, small cap companies have a lower market capitalization cap of less than Rs. 5,000 crores.
Why Should I Invest in Small Cap Stocks ?
As we have come to know what are small-cap stocks in India, let’s also be informed on how we should invest. To invest in the top small cap stocks to buy India provides a unique opportunity in the investment space. These stocks are of small cap companies in India with less market capitalisations which give them different prospects and features .
Growth Potential: It should be noted that the most popular small cap stocks to invest in, are often characterized by high growth rates. Many of these top small cap companies in India are in emerging fields, and these firms can undergo a great deal of growth. This makes small cap stocks for long term investment highly ideal for instances.
Market Inefficiencies: The small-cap market turns out to be less efficient compared to larger markets due to its low observation. Market anomalies found within small value stocks may be beneficial for investors who are able to determine amongst them that some are indeed undervalued gems.
Diversification: The following small shares to buy in India should help in diversifying your investment portfolio. Small cap stocks also have different behaviour with that of mid cap stocks in India and large cap stocks hence acting as a shock absorbers in the market. This diversification particularly with its oriented small cap stocks introduces a new play to investment portfolios.
Innovation and Agility: The SMEs as they are known can be more creative and flexible than their larger counterparts. Withstanding such a change can lead to the Faster Adaptation of Companies and thereby creating competitive advantage hence fostering resilience. This attribute is especially apparent in small capitalization IT related stocks which can quickly be pioneers of new technologies.
BSE Small Cap Stock List : Best small cap companies listed on BSE
1. Ksolves India Ltd
Ksolves India Limited, started in 2012 is a publicly traded software solutions company listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) of India. It deals with technologies like Big Data, Machine Learning, CRM, ERP, Salesforce®, Odoo and others. Ksolves currently employs a creative and a pool of over 500 in-house technology experts whose primary role is to help clients in solving their unique business problems through technology and offering them appropriate software solutions for a wide range of industries, including Real Estate, E-commerce, Finance, Telecom, Healthcare, and others. They offer services including artificial intelligence & machine learning, big data, salesforce, dev ops, Odoo, Java, and micro services. Ksolves has achieved the confidence of clients globally, providing the appropriate solutions for growth, effectiveness and success.
2. Tuticorin Alkali Chemicals and Fertilizers Ltd
The Tuticorin Alkali Chemicals and Fertilizers Limited (TAC), incorporated in 1971 in Tuticorin, Tamil Nadu, India is one of the leading chemical manufacturing companies of the country. TAC mainly manufactures soda ash (sodium carbonate) and ammonium chloride which are used in such operations as glass manufacturing, washing, and textile processing respectively. Benefiting from a unique process, TAC captures and re-uses carbon dioxide and ammonia generated from other manufacturing industries without reinvestment. This firm has built a reputation in regards to environs and quality, where it serves stockholders by producing high-quality products. It also covers wide range of machineries and equipments and located near to Tuticorin port transport facilities are met with ease for domestic and export markets establishing the company firmly in the industry.
3. Sathlokhar Synergies Ltd
Sathlokhar Synergys was incorporated during 2013 and is an EPC company actively operating from Chennai, India. A company deals with designing and constructing buildings and facilities both for industrial, warehousing commercial, and institutional, pharmaceutical hotel and hospital and solar power projects on turnkey basis. Sathlokhar is ISO 9001:Further, the company has been certified for the year 2015 Quality Management, ISO 14001:2015 Environmental Management, and ISO 45001:2018 Occupational Health and Safety Management. The company has established its facilities in different parts of India via states like Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, West Bengal, Gujarat as well as Uttar Pradesh.
4. Indian Energy Exchange Ltd
The company Indian Energy Exchange Ltd enjoys the reputation of being India’s leading energy exchange that promotes efficient energy trading. Total revenues of the business have increased at an average of 13.81% per year within a period of five years, which is higher than the industry standard of 8.71% per year. This place it among some of the best small cap stocks having strong fundamentals. The fact remains that even its debt-to-equity ratio has remained low at a 1.99% level, which is lower than the industry average of 145.98%.
5. Aptus Value Housing Finance India Ltd
Aptus Value Housing Finance deals exclusively with affordable housing finance – or more accurately, with those among the population who are underserved in terms of housing finance. Within the past five years, has given an astounding revenue growth rate averaging 33.16% per year, well above the industry standard of only 1.6%. After this performance it can be considered as a contender for the best small cap stock for investment over the long run. Substantiality of its DE ratio compares with the industry average of 418.29%, this implies the intention of the firm’s management to embark on sustainable growth.
6. Five-Star Business Finance Limited
As a company that focuses on small businesses and microloan Five-Star Business Finance Ltd aims at the credit needs of the underserved market. Over the five year period, the company’s annual sales growth has been at 40.37%, which is higher compared to the average industry rate of 15.2%. It has kept its average debt-to-equity ratio at 111.54% which is much lower than the groceries industry’s 348.68%.
7. CE Info Systems Ltd
CE Info Systems Private Limited which is also referred in this context as MapmyIndia is one of the leading digital mapping and geospatial technologies in the Indian context. The company has achieved its revenue growth over the five years at 20.65 / 14.2 = 1.45, which is above the industry standard. Its rapidly growing status makes it among the best performing small capitalization shares. Its D/E ratio was kept to 5.31% which is much finer than the average of 11.13% of the telecommunication industries.
How to Invest in Small Cap Stocks ?
Investing in good small cap stocks in India requires thorough research and analysis. The following are steps to consider when investing in the top small cap stocks to buy India:
Research NSE high growth small cap stocks by sector and find potential investments. The Ticker Tape Stocks Screener can help filter the stock screener by market capitalisations and potentially find small capitalisation stocks for the longer term Investment.
Interpreting past and current accounting and operating data. Potential buyers should therefore analyze the list of small cap stocks for instance small cap IT stocks by checking their balance sheets, revenue and earnings growth rates and their levels of debts.
We recommend users to compare the stock to top midcap stocks as part of diversification and potential addition to a portfolio.
How to Identify Best Small Cap Stocks ?
Finding out the best small cap share is not an easy task as it involves taking risk as well as profit making skills. Here are key considerations to evaluate the best small cap company in India:
- Company Fundamentals
Self-study of such aspects like financial sustainability, revenues, stability of earnings. Concentrate only on small cap growth stocks supported by coherent business prospects and competitive advantage. It will be useful for the investor who wants to find out small cap stocks to buy for the long term by remembering the smallcap company list.
- Management Team
Evaluate the leadership by potential and past performance. Proper management and a clear vision are traditionally considered to be good signs for a long term performance in small cap stocks India market mainly for top ranked small cap stocks .
- Market Trends
Summarize current conditions and the company’s place in the industry. Opportunities for small cap stock that has upward potential in its space provided the space it is in is growing.
- Financial Ratios
Analyze specific industry ratios like gross and net profit margin, P/E ratio, D/E ratio and ROE. These ratios give details about the financial status and the worth of firms which assist investors in defining the best ten small capitalization stocks.
- Liquidity
Check the liquidity of the stock so as to enable free flow in buying and moving up as well as selling and going down. All the small cap stocks usually have low liquidity, making the stocks highly volatile and difficult to trade.
- Macroeconomic Factors
Considerate, all-round state of affairs of economies. For this reason, any list of small-cap ‘forever’ investments can be somewhat influenced by the changes in the macro environment. By dividing the stocks by sectors, one can reduce risk involved in selecting small cap stocks in India by opting for the best sectors.
- Research and Analysis
Conduct research often and ensure you keep abreast to the company’s performance, the industry and any exciting developments.
Conclusion
Bse Small cap stocks can be interesting as addition to other stocks because generally they are associated with higher returns. The same applies to buying any particular stock, including stocks of companies that are classified as small-cap stocks.
Hence it can be summarized that small cap is a part of India’s very own equity market including the stocks of small-cap firms displaying high growth rate. Bse Small cap stocks might also offer investors a chance to diversify their portfolio and actually record higher returns. That said equity indices with small capitalizations also pose greater risk and the common users should ensure that they consult before investing in the Bse small cap stocks .
Also Read : Top EV Stocks in India
FAQ'S
What is a small-cap index ?
The NIFTY Smallcap 100 Index seeks to replicate the movements and operations of the small-capitalization portion in the financial market place. It entails one hundred publicly floated, marketable companies on the exchange.
Which are good Bse small cap stocks list to invest in the year 2024 ?
Here is a list of Bse small cap stocks list to invest in 2024:
- Indian Energy Exchange Ltd
- Aptus Value Housing Finance India Ltd.
- UTI Asset Management Company Ltd
- Five-Star Business Finance Ltd
- Clean Science & Technology Ltd – ‘Full deliverables get achievements’
Note: The data on this list have been taken on 8th November 2024.
Are there some index funds that have Bse small caps ?
The Nippon India Nifty Smallcap 250 Index Fund-Regular Plan is a small cap index fund that must invest at least 65 percent of its fund in small stocks to enable consistent purchase.
What are small capitalization stocks in India ?
Smallcap stocks therefore encompass firms that have a market value of less than Rs 500 crore and are either listed in BSE or NSE. Such stocks mostly refer to the young and relatively small firms which could mean they hold a higher return potential. However, they are also very unpredictable and have higher risks, therefore expected to be suitable for high risk investors.
