Introduction
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Micro-cap stocks belong to companies with smaller market capitalisation, typically within the range of Rs. 100 crores to Rs. 500 crores. Despite being small company stocks, they offer high growth potential, which makes them attractive inclusions in your portfolio. However, they are also known for their volatility. If you stay invested long-term and have a high-risk tolerance, you can consider these stocks for significant gains over time. In this blog, we explore the top picks for you to make the most out of their potential.
Top Micro-cap stocks to invest in India (2024)
Listed below are the best micro-cap stocks to invest in 2024:
Som Datt Finance is a financial service company that operates in the investment and lending sector. With a focus on financial consultancy and loans, this company has been steadily growing in the finance market. It has a strong track record and has been consistently expanding its portfolio of financial products.
Currently, as of 18th October 2024, Som Datt Finance Corporation Ltd's market capitalisation is Rs. 100.2 crores with a Price-to-earnings ratio of 8.05 and an Earnings per share of Rs.12.44.
Formerly known as BNK Capital Markets Limited, Quest Capital Markets Ltd is yet another prominent micro-cap stock in the financial services sector. It operates as an investment banking and financial advisory firm. It offers many services, including mergers, acquisitions, and corporate finance.
The company shows tremendous scope for growth with a market capitalisation of Rs.511.75 crores, price-to-earnings ratio of 25.16 and earnings per share of Rs.20.34 as of 18th October 2024.
With its performance linked to the returns in the stock market, Elixir Capital is a non-banking financial company (NBFC) involved in offering financial and investment services. Its core focus is on providing small and mid-cap stocks with long-term growth prospects. It presents a high potential for investors seeking sustainable wealth creation.
The company's market capitalisation stands at Rs.89.52 crores with a price-to-earnings ratio of 135.39 and an earnings per share of Rs.1.14 as of 18th October 2024.
Jupiter Wagons Ltd operates in the manufacturing sector in the railway and transportation industry. The company is a leader in producing wagons, railway components, and heavy engineering goods. It is poised for growth, given India's infrastructure push over the past decade.
The market capitalisation of Jupiter Wagons Ltd is Rs.22,197 crores with a price-to-earnings ratio of 61.95 and earnings per share going up to Rs.8.44 as of 18th October 2024.
Balampur Chini Mills Ltd is one of India's largest integrated sugar manufacturing companies. It operates in the agricultural and bioenergy sectors. Besides producing sugar, the company is also involved in ethanol production. This is gaining traction due to the government's focus on biofuels, which sets it up for growth.
The market capitalisation of this company as of 18th October 2024 is Rs.12,876.65 crores and its price-to-earnings ratio is at 30.04 with Rs.21.24 earnings per share.
RPP Infra Projects Ltd is a civil construction company, involved in infrastructure projects such as roads, bridges, and buildings. As India is gearing up with its infrastructure agenda, the company is set to continue seeing the growth it has over the years. It remains a strong contender in the construction and infrastructure sector.
The market capitalisation of Rs.991.02 crores is a testament to this. Similarly, its price-to-earnings ratio is 13.89, and the earnings per share is Rs.14.44 as of 18th October 2024.
Sheela Foam Ltd is a leader in the home furnishing industry. It is primarily known for its flagship product, Sleepwell mattresses. The company has expanded into other foam-based products and functions in both the retail and industrial segments. With the rising demand for quality home furnishings, Sheela Foam Ltd is a strong micro-cap stock with substantial growth potential.
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Its market capitalisation as of 18th October 2024 has come up to Rs.9,631.13 crores with a price-to-earnings ratio of 73.78 and earnings per share of Rs.12.01.
Conclusion
Micro-cap stocks present a unique opportunity for you to earn potentially higher rewards if you are willing to take on higher risks. With stocks listed above, you can explore diverse options across various sectors like finance, manufacturing, infrastructure, and agriculture. However, due to the inherent volatility of micro-cap stocks, it's good to conduct thorough research and adopt a long-term investment approach.
Investing in these stocks requires patience and the ability to deal with market fluctuations. Once you figure this out, you can benefit from the growth potential they offer. They make for a valuable addition to diversify your portfolio. So, research, check market trends, and keep track of companies and their performance, and you should be good to go.
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