Introduction
Are you ready to discover the hidden gems of the Indian stock market? Look no further than the world of small cap stocks! These dynamic companies often fly under the radar of the mainstream media, but their potential for growth and value cannot be ignored.
Small-cap stocks, which belong to a subset of the equity market, are characterized by their relatively lower capitalization when compared to large-cap stocks. Their market capitalization, determined by multiplying the number of outstanding shares by their value, typically serves as the primary metric for their classification.
As we move into 2023, the Indian small cap space is ripe with opportunities for investors seeking higher returns. So, let’s dive in and explore the top 5 small cap stocks in India that are worth keeping an eye on this year.
1. VST Industries
Key Metrics
| PE Ratio | PB Ratio | Dividend Yield | Sector PE | Sector PB | Sector Div Yld |
|---|---|---|---|---|---|
| 14.02 | 4.51 | 4.46% | 47.25 | 9.08 | 1.46% |
VST Industries Limited is an Indian tobacco company that is engaged in the manufacture and sale of cigarettes. The company is the third-largest player in the Indian cigarette market and has a strong brand portfolio. Found in 1930, its current share price is Rs. 3195.80. Additionally, the company’s current market capitalization is 4,934 CR.
2. Blue Star Ltd
| PE Ratio | PB Ratio | Dividend Yield | Sector PE | Sector PB | Sector Div Yld |
|---|---|---|---|---|---|
| 57.41 | 14.14 | 0.67% | 127.05 | 5.47 | 0.66% |
Blue Star Limited is an Indian multinational company specializing in manufacturing and selling air conditioning and commercial refrigeration systems. The company has a well-established brand and a vast distribution network across India, which has contributed to its strong market position.
Additionally, Blue Star has been investing heavily in research and development to develop innovative and energy-efficient products, which can help it gain a competitive edge in the market.
As of today, Blue Star’s stock price is Rs. 1,221.55, and its market capitalization was approximately Rs. 7,889 crores. The company’s revenue in FY 2021 was Rs. 6,057 crores, with a net profit of Rs. 118 crores.
3. Engineers India Ltd
| PE Ratio | PB Ratio | Dividend Yield | Sector PE | Sector PB | Sector Div Yld |
|---|---|---|---|---|---|
| 13.87 | 2.43 | 3.93% | 49.48 | 4.57 | 0.64% |
Industrials Construction & Engineering, Small cap with a market cap of ₹4,353 cr, stock is ranked 551, Moderate Risk Stock is 2.23x as volatile as Nifty
Engineers India Limited (ENGI) is a small-cap company in the industrial construction and engineering sector, with a market capitalization of ₹4,353 crores. The company has a strong track record of delivering engineering, procurement, and construction projects in the oil and gas, petrochemical, and fertilizers sectors. With a diversified client base and a strong order book, ENGI is well-positioned to capitalize on the growing demand for infrastructure development in India.
Despite being a moderate-risk stock that is 2.23 times as volatile as the Nifty, ENGI has shown consistent growth over the years, with a CAGR of 15.26% in revenue and 24.55% in net profit over the last five years. The company also has a healthy dividend payout ratio of 50.85%, which makes it an attractive investment option for long-term investors looking for stable returns.
4. Triveni Turbine Ltd
| PE Ratio | PB Ratio | Dividend Yield | Sector PE | Sector PB | Sector Div Yld |
|---|---|---|---|---|---|
| 62.20 | 12.33 | 0.78% | 49.48 | 4.57 | 0.64% |
Triveni Turbine Limited (TRVT) is a small-cap company in the heavy electrical equipment sector, with a market capitalization of ₹10,664 crores.
Despite being a moderate-risk stock that is 2.80 times as volatile as the Nifty, TRVT has shown consistent growth with a CAGR of 11.44% in revenue and 10.67% in net profit over the last five years.
TRVT is engaged in the manufacturing of steam turbines and parts, serving industries such as sugar, distillery, power, and process industries.
The company has a strong focus on innovation, research, and development, and a healthy dividend payout ratio of 32.54%. Overall, TRVT is a compelling small-cap stock to consider for an investment, but investors should conduct due diligence and consider the inherent volatility of the stock.
5. Aether Industries Ltd
| PE Ratio | PB Ratio | Dividend Yield | Sector PE | Sector PB | Sector Div Yld |
|---|---|---|---|---|---|
| 90.04 | 27.66 | —- | 12.75 | 2.48 | 2.37% |
Aether Industries Limited (AIL) is a small-cap company in the specialty chemicals sector, with a market capitalization of ₹10,872 crores. AIL specializes in producing advanced intermediates and specialty chemicals with a focus on research and development to improve its products and processes.
Despite being a moderate-risk stock that is 2.15 times as volatile as the Nifty, AIL has shown consistent growth with a CAGR of 37.52% in revenue and 64.24% in net profit over the last three years.
AIL has won several awards for its innovation and is an attractive small-cap stock to consider for investment. However, investors should conduct their due diligence and consider the inherent volatility of the stock.
Conclusion
Don’t miss out on the chance to potentially earn higher returns while diversifying your investment portfolio. Keep a close eye on the top small-cap stocks we’ve highlighted and consider consulting with a financial advisor to determine whether investing in these companies aligns with your financial goals and risk tolerance. So, take action today and consider adding some of these top small-cap stocks in India to your investment portfolio!
