IF YOU ARE INVESTING SAMLL CAPS MAKE THE PORTFOLIO WITH 30 SHARES, NOT 15 SHARES,

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

SL No.	Stock Name	Market Cap (₹ Crores)	Close Price (₹)
1	Central Bank of India Ltd	16,884.43	19.45
2	ICICI Securities Ltd	16,806.06	520.60
3	IIFL Wealth Management Ltd	16,725.38	1,882.65
4	Ramco Cements Limited	16,710.60	707.20
5	Carborundum Universal Ltd	16,699.16	879.45
6	DCM Shriram Ltd	16,678.87	1,080.50
7	Gillette India Ltd	16,616.02	5,099.25
8	Aptus Value Housing Finance India Ltd	16,513.44	331.60
9	Aavas Financiers Ltd	16,223.33	2,052.90
10	Bharat Dynamics Ltd	16,126.00	879.85

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
• 
  

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 Name	Market Cap (₹ Crores)	Close Price (₹)	1Y Return (%)
1	Sel Manufacturing Company Ltd	2,106.21	635.65	46,985.19
2	Kaiser Corporation Ltd	340.46	64.70	16,075.00
3	Raj Rayon Industries Ltd	1,033.65	18.75	6,150.00
4	Sejal Glass Ltd	252.20	249.70	4,894.00
5	Ambar Protein Industries Ltd	338.76	589.15	4,178.50
6	Alliance Integrated Metaliks Ltd	587.01	50.55	2,505.67
7	DIGJAM Ltd	248.60	124.3	2,462.89
8	Salasar Exteriors and Contour Ltd	417.97	406.00	2,316.67
9	Polo Queen Industrial and Fintech Ltd	1,964.14	58.5	2,058.67
10	Gensol Engineering Ltd	1,740.58	1,424.50	1,742.11

1. 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

2. 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.

3. 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

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. 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.

6. 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.

7. DIGJAM Ltd

Under the brand name DIGJAM, Digjam is involved in the wholesale and retail trade of all types of textiles as well as the production of woolen and worsted fabrics of the highest possible quality in Jamnagar, Gujarat.

8. Salasar Exteriors and Contour Ltd

At the present time, Salasar Exteriors & Contour is occupied with the business of providing mechanical, electrical, and plumbing (MEP) and finishing works. These services cater to civil and interior work, super steel and structural work, furniture work, and fire fighting work for residential, commercial, hotels, Guest House, hospitals, and the IT Sector.

9. Polo Queen Industrial and Fintech Ltd

In addition to supplying the defense industry, developing an information technology park, and engaging in chemical and mineral trading, Polo Queen Industrial and Fintech Ltd. is involved in the manufacture and marketing of fast-moving consumer goods (FMCG) in the domestic market.

10. 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).

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 Name	Close Price (Rs)
1	RENUKA	67.45
2	INTELLECT	533.1
3	ROUTE	1,398.30
4	TV18BRDCST	39.3
5	HFCL	81.45
6	APOLLOTYRE	274.5
7	LATENTVIEW	369.45
8	INDIGOPNTS	1,494.00
9	JUBLINGREA	561.05
10	PVR	1,756.00

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 Name	Close Price (Rs)
1	INTELLECT	533.15
2	APOLLOTYRE	274.7
3	NAVINFLUOR	4668
4	COFORGE	3679
5	BATAINDIA	1801.2
6	CUB	180.6
7	LINDEINDIA	3209.45
8	ELGIEQUIP	413.4
9	PVR	1756.5
10	CHAMBLFERT	320.55

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 Name	Market Cap (Rs Crores)	Close Price (Rs)	1Y Return (%)
1	Kore Foods Ltd	22.25	19.1	565.51
2	Northern Spirits Ltd	259.07	161.40	336.22
3	M K Proteins Ltd	243.66	584.20	301.93
4	Rama Vision Ltd	31.48	31.40	224.05
5	Lotus Chocolate Company Ltd	172.90	134.65	205.68
6	Vadilal Industries Ltd	1,819.81	2,531.80	134.1
7	Dangee Dums Ltd	345.67	22.45	76.77
8	Muller and Phipps (India) Ltd	12.62	201.85	70.7
9	Paramount Cosmetics (India) Ltd	23.81	49.05	63.23
10	KMG Milk Food Ltd	11.67	22.00	46.67

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 Name	Market Cap (Rs Crores)	Close Price (Rs)	1Y Return (%)
1	Natural Capsules Ltd	538.52	602.75	356.97
2	Syschem (India) Ltd	153.47	50.25	347.06
3	Maitri Enterprises Ltd	16.30	37.05	327.83
4	Panchsheel Organics Ltd	399.81	339.35	312.43
5	Parnax Lab Ltd	102.74	89.45	233.15
6	Shukra Pharmaceuticals Ltd	32.21	205.75	208.01
7	Sunil Healthcare Ltd	128.13	124.95	171.63
8	Vaishali Pharma Ltd	105.88	100.4	167.73
9	Hemo Organic Ltd	8.01	23.1	141.88
10	Jagsonpal Pharmaceuticals Ltd	954.00	364.15	138.08