Top 10 – Best Small Cap Stocks to Buy for Long Term in India 2022

Top 10 - Best Small Cap Stocks for Long Term Investment India - Top 100 - Small Cap Stocks to Buy - Wikipedia of Finance
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There are lots of questions in persons mind when we talk about small cap stocks. Firstly people ask for what is small cap stocks meaning and then they jump with questions like which is the best small cap stocks to buy and hold or best small cap stocks to buy in India for long term 2022. As mostly everyone is only aware of it that small cap stocks are high risky and they gives you the higher returns as well.

In this article we have focused to guide you towards top small cap stocks with highest upside potential in India 2022, what time frame one should consider when you invest for long term along with top 10 best small cap stocks in India for 2022. After reading this article you will be in position to understand which are the Indian small cap stocks with big potential and then, take your own decision towards best small cap stocks for 2022 to buy, sell, hold or invest in small cap stocks for long term.

Small Cap Stocks Definition

What are Small Cap stocks? Small cap stocks are stocks that move very rapidly up as well as down. Their market cap is much lower than the large or mid cap. They have a tendency to be extremely unpredictable. If you have a strong likes towards playing with higher risk, then these small cap stocks is the place where you would like to be in. In Indian stock market, best small cap stocks in 2022 like Dixon Technologies, Nilkamal, Venkys India, Birlasoft, Welspun India, Raymond, GE Shipping, etc. are few of the examples of small cap stocks. Of course, there are a large list of small cap companies, you can visit the BSE (Bombay Stock Exchange) or NSE (National Stock Exchange) website and check for the same.

Top 10 - Best Small Cap Stocks for Long Term Investment India - Top 100 - Small Cap Stocks to Buy - Wikipedia of Finance

Small cap stocks means, lying at the lowest end of market capitalization. Small cap companies have smaller income, client or customer bases, and usually include the start-ups or companies in the early stage of development. small cap stocks with big potential have high returns as they are yet to be discovered within the sector and can show growth potential. Such list of companies stock is known as small cap stocks.

However, as these companies are doing businesses at small scale, its advised to do research for these best small companies to invest in 2022 India very carefully. After research, you may have shortlisted some of the top small cap stocks with highest upside potential in India 2022. Also it should be considered that small companies don’t have enough finance or quality to survive during bearish market or in bad times. It is essential that one should completely research with respect to the certifications, promoters, administration and reputation before you decide to invest in small cap stocks.

Top 10 – Top Small Cap Stocks to Buy for Long Term 2022

Small caps are frequently expressed as Indian small cap stocks with big potential to make huge returns. We would state that small caps can turn out to be an exceptionally good stock for long term investment if the small cap stock pick or small company are doing really a great and well-managed business. You can also analyze good stocks from best cheap stocks list of India for 2022.

When we say best small cap stocks for long term investment, it is advised to consider that one should select best small cap stocks to buy and hold for not more than 1 to 2 years. The list of small cap stocks provided below is based on EPS Ratio (Earnings Per Share Ratio) from highest to lowest also you can view Profit-Earning Ratio (P/E Ratio) and P/BV (Price to Book Value) for your analysis. Read what is EPS ratio with examples and what is P/E ratio with examples to understand better.

Observe the top small cap stocks with highest upside potential in India 2022 for long term investment from below table to get better idea. Your should perform more research and gain knowledge about these stocks before making any decision. On top of this, you should analyze stock based on technical analysis, fundamental analysis and charting skills to guide you in selecting Indian small cap stocks with big potential.

Sr.Company NameBV (Rs)Intrinsic Value (Rs)P/E RatioEPS1-Year Return
1Tata Steel Long Products Limited 575.20 3,331.95 4.16229.47128.61%
2Venky’s (India) Limited 783.98 2,412.90 16.26195.82119.95%
3Hinduja Global Solutions Limited 998.46 2,724.43 14.66194.08311.16%
4Shriram City Union Finance Limited 1,269.28 2,252.54 13.33164.35165.22%
5Polyplex Corporation Limited 972.59 2,057.12 12.95141.66147.72%
6Vardhman Textiles Limited 1,121.24 1,323.16 14.87137.02167.38%
7UFLEX Limited 769.49 1,044.19 4.99126.09103.36%
8CEAT Limited 819.85 1,530.53 11.00121.3336.69%
9Nilkamal Limited 763.52 1,206.30 27.83 96.20104.28%
10eClerx Services Limited 460.82 1,042.40 24.92 92.32228.47%

Note: Above ratios and values are established from January 2022 data. This list will assist you in your research like: stocks with low P/E ratio, stocks with high EPS ratio, stocks with high EPS and low PE ratio in 2022.

Top 50 – Best Small Cap Stocks for 2022 with Big Potential:

We are presenting here small cap companies list which will assist you in your deep research. From the list of Indian small cap stocks with big potential companies you can choose which is best suitable for your portfolio. Below mentioned Top 50 – List of best small cap stocks to buy in India for long term 2022. This list does not includes “Top Small Cap Stocks to Buy” which is mentioned above.

Sr.Company NameBV (Rs)Intrinsic Value (Rs)P/E RatioEPS1-Year Return
1Birla Corporation Limited 712.42 1,286.36 14.55 91.67123.22%
2Motilal Oswal Financial Services Limited 301.53 1,842.76 10.26 88.7052.93%
3Godfrey Phillips India Limited 496.80 789.31 15.94 83.4354.68%
4Mahanagar Gas Limited 327.24 1,027.54 13.54 78.8029.99%
5Ajanta Pharma Limited 346.17 1,368.54 28.20 78.4043.76%
6Supreme Petrochem Limited 113.26 560.12 11.01 67.61199.60%
7IOL Chemicals and Pharmaceuticals Limited 214.70 1,613.04 9.06 65.41-13.14%
8Gujarat Narmada Valley Fertilizers and Chemicals Limited 390.44 582.12 7.88 60.21141.04%
9PNB Housing Finance Limited 526.00 1,326.22 11.95 53.5277.33%
10Alembic Pharmaceuticals Limited 260.86 1,043.35 15.23 52.97-16.09%
11DCM Shriram Limited 298.45 636.67 24.37 48.87253.44%
12Jindal Stainless (Hisar) Limited 125.93 374.28 6.75 48.51232.62%
13Kalpataru Power Transmission Limited 251.06 829.70 12.01 47.0588.74%
14Cochin Shipyard Limited 302.38 925.59 8.13 45.5914.67%
15Dhanuka Agritech Limited 170.94 616.77 18.53 44.2012.06%
16Chambal Fertilizers & Chemicals Limited 127.92 274.67 10.84 41.74140.27%
17JK Lakshmi Cement Limited 178.00 409.16 14.40 41.46130.05%
18Amara Raja Batteries Limited 246.48 745.44 18.34 41.455.18%
19Cyient Limited 265.70 595.46 29.40 39.50197.77%
20Cholamandalam Financial Holdings Limited 286.90 703.64 19.34 37.4091.72%
21Kaveri Seed Company Limited 213.37 589.70 15.28 36.290.92%
22Glenmark Pharmaceuticals Limited 250.37 458.55 14.63 36.246.91%
23Can Fin Homes Limited 196.00 412.72 19.74 35.4349.35%
24Caplin Point Laboratories Limited 138.00 1,117.86 26.56 34.1868.41%
25Gujarat State Petronet Limited 113.27 774.00 9.47 33.5969.87%
26KEI Industries Limited 197.34 692.45 28.13 33.41187.46%
27Finolex Cables Limited 223.26 400.22 14.89 32.9579.39%
28Rajesh Exports Limited 380.07 564.93 19.64 32.9144.95%
29The Great Eastern Shipping Company Limited 524.22 363.54 27.40 31.5152.50%
30EID Parry India Limited 258.50 456.74 14.85 31.1084.25%
31Mazagon Dock Shipbuilders Limited 170.15 358.58 8.52 29.8259.30%
32Eris Lifesciences Limited 115.99 509.53 29.84 27.4566.00%
33Sharda Cropchem Limited 178.93 605.08 12.02 26.5333.70%
34IIFL Finance Limited 142.06 201.45 11.24 26.26289.94%
35Aarti Drugs Limited 98.64 408.27 23.74 26.19-20.97%
36Indiabulls Housing Finance Limited 348.89 514.57 9.07 26.1857.13%
37Rain Industries Limited 179.18 229.96 9.30 25.77152.58%
38Welspun Corp Limited 145.35 272.90 5.80 25.4728.27%
39Security and Intelligence Services (India) Limited 124.66 495.22 20.26 24.9445.26%
40KRBL Limited 156.87 282.59 13.16 24.3822.98%
41Avanti Feeds Limited 129.27 682.26 23.41 24.1413.62%
42Phillips Carbon Black Limited 102.55 207.92 11.35 24.1183.99%
43Nesco Limited 217.04 519.43 28.75 23.2026.23%
44JK Tyre & Industries Limited 108.55 189.41 7.20 22.93162.91%
45Granules India Limited 87.63 359.82 14.59 22.54-15.28%
46Manappuram Finance Limited 86.34 342.71 9.22 21.1820.00%
47KEC International Limited 130.68 337.09 22.38 20.5439.58%
48PNC Infratech Limited 119.01 231.88 18.52 20.38128.93%
49JK Paper Limited 149.91 271.41 12.49 20.04182.71%
50Balrampur Chini Mills Limited 125.30 300.19 18.93 19.89147.77%
51Spandana Sphoorty Financial Limited 421.67 898.89 29.17 18.931.16%
52FDC Limited 102.73 195.16 19.40 18.181.69%
53RITES Limited 99.54 318.87 15.46 18.1718.55%
54K.P.R. Mill Limited 68.31 193.22 26.06 18.11270.21%
55Gujarat Ambuja Exports Limited 72.62 299.01 9.81 18.0850.06%
56Indo Count Industries Limited 65.07 152.18 16.41 17.73126.73%
57Jindal Stainless Limited 64.68 206.16 10.44 17.32203.98%
58Bharat Dynamics Limited 146.48 272.97 22.76 17.1832.44%
59KNR Constructions Limited 69.67 276.86 18.22 16.82149.90%
60Jindal Saw Limited 218.36 161.95 8.11 15.01100.41%
61HeidelbergCement India Limited 65.92 143.07 17.29 14.7739.57%
62Bajaj Consumer Care Limited 51.31 190.08 17.58 14.7640.98%
63Suprajit Engineering Limited 71.52 204.52 28.01 14.36105.32%
64CCL Products (India) Limited 81.73 151.29 29.15 14.1067.16%
65Gujarat State Fertilizers & Chemicals Limited 231.89 160.88 9.76 13.95112.48%
66Ashoka Buildcon Limited 22.15 74.72 8.54 13.6988.33%
67Advanced Enzyme Technologies Limited 86.84 258.86 29.30 13.4319.38%
68Finolex Industries Limited 50.59 125.80 17.14 13.32120.41%
69CSB Bank Limited 125.67 114.41 24.54 13.0238.33%
70Equitas Holdings Limited 89.94 237.09 10.64 12.71170.67%
71Alembic Limited 89.45 91.94 9.60 11.8112.22%
72Redington (India) Limited 63.14 162.60 13.20 11.61137.97%
73Rallis India Limited 81.80 167.83 28.76 11.2615.18%
74Mahindra CIE Automotive Limited 132.69 236.89 22.38 11.1986.98%
75Shipping Corporation Of India Limited 175.34 124.87 12.78 11.11172.81%
76CESC Limited 74.48 98.32 8.93 10.5062.39%
77Rashtriya Chemicals and Fertilizers Limited 60.42 70.27 9.76 10.2285.67%
78Exide Industries Limited 85.56 218.49 18.52 10.0416.40%
79MOIL Limited 118.82 222.68 16.95 9.9727.42%
80Sterlite Technologies Limited 50.03 164.11 29.14 9.7287.34%
81NLC India Limited 101.69 106.00 8.32 9.5455.76%
82DCB Bank Limited 120.98 166.16 9.98 9.3521.42%
83Apollo Tyres Limited 180.18 180.27 12.94 9.2287.05%
84Housing & Urban Development Corporation Limited 65.88 140.11 5.04 8.8943.75%
85National Aluminium Company Limited 58.14 111.58 12.12 8.85251.63%
86City Union Bank Limited 79.08 87.54 20.69 8.2819.28%
87The Federal Bank Limited 78.52 110.68 12.14 8.0778.35%
88EPL Limited 53.76 105.64 29.00 8.00-8.59%
89Castrol India Limited 15.25 97.83 18.71 7.8437.09%
90The India Cements Limited 182.98 104.31 28.84 7.4381.23%
91JM Financial Limited 73.41 139.98 12.80 7.3423.05%
92Welspun India Limited 36.28 73.51 22.83 7.05130.85%
93Edelweiss Financial Services Limited 70.14 134.04 14.13 5.6539.74%
94Prism Johnson Limited 24.72 38.02 23.47 5.2884.93%
95Star Cement Limited 50.29 66.72 20.23 5.1425.18%
96NCC Limited 84.36 76.39 15.96 4.96149.62%
97Rail Vikas Nigam Limited 26.70 91.45 6.30 4.8665.23%
98Ircon International Limited 46.82 96.50 9.81 4.7425.40%
99Karur Vysya Bank Limited 87.07 56.23 10.85 4.5462.01%
100SJVN Limited 32.55 45.29 5.97 4.2832.48%
101Gujarat Pipavav Port Limited 46.32 56.72 25.60 4.2724.55%
102Engineers India Limited 31.15 102.36 24.70 3.2826.07%
103TV18 Broadcast Limited 24.45 26.43 14.12 3.2359.89%
104Hathway Cable & Datacom Limited 22.58 25.26 19.74 1.33-14.49%
105Bank of Maharashtra 18.29 12.32 20.88 1.0489.24%

Note: This would be ideal for research and analysis purpose. Stock Price and Financial Ratios are based on January 2022 data.

If you are new to technical indicators then you should prefer reading what are technical indicators, different types of technical indicators, what is support, what is volume, what is moving average and more about basics of technical analysis while researching best small cap stocks to buy and hold with big potential.

You can also grab more knowledge on other analysis for example: what is fundamental analysis, what are qualitative factors, what are qualitative data analysis, how to analyze annual report of a company, what are financial ratios of the companies. You can go through our free tutorial course on basics of fundamental analysis to gain education as a first step. This will provide you deep understanding when picking best small cap stocks for 2022 and then you can decide on whether these small cap stocks to buy and hold for long term or for short term.

Conclusion

Here we have seen top 10 best small cap stocks to buy for long term investment in India 2022-2023. This article should be considered purely be an informational purpose for best small companies to invest in 2022 rather than small cap stock recommendations. Our motto here is to provide you the list of top small cap stocks with highest upside potential in India 2022 to watch on. Take a look at it, you will get better ideas when picking best Indian small cap stocks to buy and hold with big potential. Hope you find this interesting and you are welcomed to share your feedback.

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5 thoughts on “Top 10 – Best Small Cap Stocks to Buy for Long Term in India 2022”

  1. Nice post. I will surely tried and analyze it in detail. After getting practical experience I will bookmark your site.

  2. Greetings from Dubai.

    Thank you for a great job.

    Your articles, recommendations analysis and charts are too convincing and educating.

    I am retired NRI (returning to India for good by Feb 2021). For the past many years, being in and out of stock market, I have only lost money both in stocks and mutual funds. Would you give me a candid advice/recommendation for investing up to Rs. 10 lakhs that can help me get some returns for our rest of the life?

    Please tell me your professional service charges and I am happy to pay that.

    May I look forward to your recommendation?

    Regards,

    James

    1. WikiFinancepedia Team

      Thanks James Mathew for your feedback!

      For those who are either retiring or already retired, we do not advice them to invest their hard-earn money into mutual funds as well as equity stocks. Since it is always said that high returns are equivalent to high risk. We would recommend you to invest in financial instruments which are categorized under low-risk.

      We do not provide chargeable service as of now. But if you still want to risk some part of your money then you should primarily contact the brokers who offers fund management service on behalf of their clients. They will keep to tracking your portfolio and assist you toward maximizing your profits returns on investment.

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