Are you searching for the small cap stocks list in NSE? In the present blog post, I am going to discuss the small cap stocks list in NSE.
Small-cap stocks are highly volatile and a rapid movement in their price action is quite noticeable.
The 50 small-cap stocks list in NSE is also known as the Nifty small-cap 50 index. The Nifty small-cap 50 index represents about 2% of the free-float market capitalization of the stocks listed on NSE, as on 29th March 2019.
What is a small-cap stock?
Companies with a market capitalization of less than 500 crore rupees are considered small-cap stocks. More than 90% of Indian companies are considered small-cap companies.
However, the definition of small-cap stocks can vary from broker to broker. A company’s market capitalization is the multiplication of its current share price by the number of its shares outstanding. The number of shares outstanding is the number of shares that a company has issued to the market.
Now consider one example to calculate the market capitalization of a stock. Suppose, the number of shares outstanding is 2 crore shares, and the current share price is Rs. 50, the market capitalization of the stock is Rs. 100 crore (2 crore x Rs. 50). Therefore, the stock is a small-cap stock.
Features of small-cap stocks
The followings are the features of small-cap stocks.
Small-cap stocks are highly volatile. These are subjected to rapid movements in their price during the day.
Investing in small-cap stocks involves a lot of risks. Thus, investing in small-cap stocks is considered a risky investment. Once in a downtrend, it takes much time to recover. And you may lose much of your money.
Small-cap stocks have less liquidity. This is due to the participation of fewer investors.
Small-cap stocks provide higher returns if the investment is done properly. These stocks have the potential to earn more than 100% return in few years.
Small cap stocks list in NSE
The followings are the small cap stocks list in NSE (50 stocks).
|S. No.||Company Name||Industry||Symbol||ISIN Code|
|1||APL Apollo Tubes Ltd.||METALS||APLAPOLLO||INE702C01027|
|2||Aarti Drugs Ltd.||PHARMA||AARTIDRUGS||INE767A01016|
|3||Affle (India) Ltd.||IT||AFFLE||INE00WC01019|
|4||Alkyl Amines Chemicals Ltd.||CHEMICALS||ALKYLAMINE||INE150B01039|
|5||Alok Industries Ltd.||TEXTILES||ALOKINDS||INE270A01029|
|6||Amber Enterprises India Ltd.||CONSUMER GOODS||AMBER||INE371P01015|
|7||Avanti Feeds Ltd.||CONSUMER GOODS||AVANTIFEED||INE871C01038|
|8||Bajaj Electricals Ltd||CONSUMER GOODS||BAJAJELEC||INE193E01025|
|9||Bharat Dynamics Ltd.||INDUSTRIAL MANUFACTURING||BDL||INE171Z01018|
|10||Birla Corporation Ltd.||CEMENT & CEMENT PRODUCTS||BIRLACORPN||INE340A01012|
|12||Can Fin Homes Ltd.||FINANCIAL SERVICES||CANFINHOME||INE477A01020|
|14||Central Depository Services (India) Ltd.||FINANCIAL SERVICES||CDSL||INE736A01011|
|15||Chambal Fertilizers & Chemicals Ltd.||FERTILISERS & PESTICIDES||CHAMBLFERT||INE085A01013|
|16||Cochin Shipyard Ltd.||INDUSTRIAL MANUFACTURING||COCHINSHIP||INE704P01017|
|17||Computer Age Management Services Ltd.||FINANCIAL SERVICES||CAMS||INE596I01012|
|19||Dilip Buildcon Ltd.||CONSTRUCTION||DBL||INE917M01012|
|20||Firstsource Solutions Ltd.||IT||FSL||INE684F01012|
|21||Future Retail Ltd.||CONSUMER SERVICES||FRETAIL||INE752P01024|
|22||GMM Pfaudler Ltd.||INDUSTRIAL MANUFACTURING||GMMPFAUDLR||INE541A01023|
|23||Granules India Ltd.||PHARMA||GRANULES||INE101D01020|
|24||Graphite India Ltd.||INDUSTRIAL MANUFACTURING||GRAPHITE||INE371A01025|
|25||Happiest Minds Technologies Ltd.||IT||HAPPSTMNDS||INE419U01012|
|26||IDFC Ltd.||FINANCIAL SERVICES||IDFC||INE043D01016|
|27||Indian Bank||FINANCIAL SERVICES||INDIANB||INE562A01011|
|28||J.B. Chemicals & Pharmaceuticals Ltd.||PHARMA||JBCHEPHARM||INE572A01028|
|29||Kajaria Ceramics Ltd.||CONSUMER GOODS||KAJARIACER||INE217B01036|
|30||Kec International Ltd.||POWER||KEC||INE389H01022|
|31||Multi Commodity Exchange of India Ltd.||FINANCIAL SERVICES||MCX||INE745G01035|
|32||NBCC (India) Ltd.||CONSTRUCTION||NBCC||INE095N01031|
|33||National Aluminium Co. Ltd.||METALS||NATIONALUM||INE139A01034|
|34||PNB Housing Finance Ltd.||FINANCIAL SERVICES||PNBHOUSING||INE572E01012|
|35||PVR Ltd.||MEDIA ENTERTAINMENT & PUBLICATION||PVR||INE191H01014|
|37||Radico Khaitan Ltd||CONSUMER GOODS||RADICO||INE944F01028|
|38||Rail Vikas Nigam Ltd.||CONSTRUCTION||RVNL||INE415G01027|
|39||Rallis India Ltd.||FERTILISERS & PESTICIDES||RALLIS||INE613A01020|
|40||Route Mobile Ltd.||IT||ROUTE||INE450U01017|
|41||Sterlite Technologies Ltd.||TELECOM||STLTECH||INE089C01029|
|42||Strides Pharma Science Ltd.||PHARMA||STAR||INE939A01011|
|43||Sun Pharma Advanced Research Company Ltd.||PHARMA||SPARC||INE232I01014|
|44||Sunteck Realty Ltd.||CONSTRUCTION||SUNTECK||INE805D01034|
|45||TV18 Broadcast Ltd.||MEDIA ENTERTAINMENT & PUBLICATION||TV18BRDCST||INE886H01027|
|46||Thyrocare Technologies Ltd.||HEALTHCARE SERVICES||THYROCARE||INE594H01019|
|47||UTI Asset Management Company Ltd.||FINANCIAL SERVICES||UTIAMC||INE094J01016|
|48||V.I.P. Industries Ltd.||CONSUMER GOODS||VIPIND||INE054A01027|
Keep in mind that the small cap stocks list in NSE is an approximation that changes over time.
Is it advisable to invest in small cap stocks list?
If you are a beginner, you should avoid investing in the small cap stocks list. Because these stocks are highly volatile and are prone to high risks.
But if want to invest in these stocks, be sure that the true value is much higher than the current price. Again, the stock should be a quality one.
One major benefit of investing in the small cap stocks list is the higher growth.
It has been noticed that small-cap stocks have historically outperformed large-cap stocks. At the same time, they are highly volatile and highly riskier. During a market crash, the small-cap stocks lose about 70% to 80% of their value. So these are highly riskier investments.
The benefit of investing in small-cap stocks is the opportunity to beat institutional investors through growth prospects. During the market bull, these stocks yield unexpected returns.
If you are able to find out the correct true value of small-cap stocks, you may consider these stocks, subject to that the true value is much higher than the current price of the stock.
I generally prefer to invest in these stocks because of higher returns. First, I judge the stock quality. I also calculate their true value based on my developed model.
You can use this free tool.
Reasons to invest in small cap stocks list
The followings are the reasons to invest in small cap stocks list.
- Higher growth potential
- If they are fairly priced
- If they are low priced but quality stocks
Investing in the small cap stocks list involves a lot of risks, as these stocks are highly volatile. But these stocks have higher growth potential.
If you are able to identify the undervalued quality stocks from the small cap stocks list, these will yield higher returns.
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