Top 10 – Best Small Cap Stocks to Buy for Long Term in India 2021

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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 2021. 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 2021, what time frame one should consider when you invest for long term along with top 10 best small cap stocks in India for 2021. 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 2021 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 2021 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 2021 India very carefully. After research, you may have shortlisted some of the top small cap stocks with highest upside potential in India 2021. 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 2021

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.

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 2021 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.

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 2021 and then you can decide on whether these small cap stocks to buy and hold for long term or for short term.

Sr. No.Company Name Latest EPS (₹) Net Profit (Margin %) P/E Ratio Price / Book Value
1Hawkins Cookers121.5410.7642.4621.10
2Garware Tech. Fibres75.7017.4928.615.67
3Wockhardt74.17-1.755.961.42
4Cera Sanitaryware73.849.0344.115.29
5eClerx Services68.2313.4111.552.08
6CEAT67.604.4316.941.60
7Godfrey Phillips58.6711.4315.862.19
8Nilkamal55.345.8826.052.04
9TVS Srichakra51.723.9031.231.65
10Just Dial43.4527.6114.533.35

Note: Above ratios and values are established from January 2021 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 2021.

Top 50 – Best Small Cap Stocks for 2021 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 2021. This list does not includes “Top Small Cap Stocks to Buy” which is mentioned above.

Sr. No.Company Name Latest EPS (₹) Net Profit (Margin %) P/E Ratio Price / Book Value
1Tata Metaliks41.439.7514.551.35
2Dhanuka Agritech39.6312.3619.064.34
3Cochin Shipyard34.6618.5710.671.31
4GNFC31.589.457.640.70
5GHCL29.3811.966.880.85
6NESCO29.2154.1619.342.77
7Caplin Point Lab28.9422.7017.743.68
8KSB28.076.5920.572.38
9Shilpa Medicare27.1515.7916.852.55
10Care Ratings26.5930.9320.422.79
11KEI Industries26.585.4016.132.37
12KNR Construction24.3110.1712.982.51
13Guj. Alkalies & Chem23.1612.3614.940.52
14Ujjivan Financial22.6910.4412.491.15
15Sonata Software20.3321.3117.107.59
16GE Power India20.163.1514.212.08
17TeamLease Services18.570.71146.967.65
18BEML18.431.9940.211.47
19TV Today Network18.0316.5212.251.47
20Sobha16.167.6620.061.37
21Sudarshan Chemicals15.047.7934.275.51
22Karnataka Bank15.006.673.450.27
23VA Tech Wabag13.352.3115.250.96
24PNC Infratech12.779.7214.421.73
25CCL Products (India)12.7128.5020.944.26
26Bajaj Corp12.6122.4816.003.93
27Advanced Enzyme12.2129.8428.624.35
28PTC India12.041.955.110.51
29Jindal Hisar11.003.8511.811.30
30Rain Industries10.883.6312.390.85
31Heidelberg Cement10.6912.3620.083.77
32DCB Bank10.549.5610.931.07
33Gateway Distriparks9.8015.8711.461.56
34Mahindra Holi.&Resor8.68-12.8823.72-5.51
35Allcargo Logistics8.192.4515.881.41
36Zensar Technologies8.115.7926.972.27
37Ircon International8.008.0611.351.02
38Ashoka Buildcon7.562.7312.695.86
39Bliss GVS Pharma7.3516.5623.412.47
40Equitas Holdings7.157.139.770.82
41GMDC6.8218.467.220.35
42Parag Milk Foods6.753.9017.501.07
43Nava Bharat Ventures6.6710.188.630.34
44Star Cement6.3215.5915.482.06
45RCF6.232.898.440.88
46Indoco Remedies6.192.2149.473.92
47Engineers India6.0013.8212.872.05
48Dishman Carbogen Amc5.799.4327.820.43
49Orient Refractories5.7512.3839.946.47
50Gujarat Pipavav Port5.5340.0416.692.21

Note: This would be ideal for research and analysis purpose. Stock Price and Financial Ratios are based on January 2021 data.


Conclusion

Here we have seen top 10 best small cap stocks to buy for long term investment in India 2021-2022. This article should be considered purely be an informational purpose for best small companies to invest in 2021 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 2021 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 2021”

  1. Avatar

    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. Avatar
      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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