The first question should arise what is exactly meant by Small-cap and which stocks fall under the category? Firstly, you need to get a basic idea regarding Market Capitalisation. Basically, the market value of a publicly-traded company’s outstanding shares is known as the market cap. Hence, according to market cap, companies can be categorized into three segments. And, small Cap is one of them. Here, we will be going to discuss the Best Small Cap Stocks List of NSE.
FAQ
At present, companies with low revenues and low market value of shares fall under the category of small-cap. So, less than 5000 Cr. market cap belongs to the small-cap division. However, beyond the top 250 companies, all belong to a small cap.
Now, the question is, which stocks are considered small-cap stocks? So, stocks with less than 5000 Crores are considered small-cap stocks.
To some extent, small-cap stocks are riskier than large-cap. On the other side, it carries high growth potential too in comparison to other caps, especially over the long term. If investors hold such growth potential small-cap stocks, it will certainly give higher returns later.
Small-cap stocks are often ignored due to their high volatility and uncertainty. But, it can reward a higher rate of return if investors hold them correctly. With its riskier features, it carries high growth potential too.
What is a Small Cap Stock?
Small cap stocks in India are stocks that have a market capitalization of between Rs 250 crores to Rs 5000 crores. These stocks can include companies from various industries and sectors. Smallcaps are usually not as well known compared to large-cap stocks, but they have the potential for higher returns if managed properly.
List of the Best Small Cap Stocks of NSE
Now, after detailed analysis, our research team gets the best Small Cap Stocks List NSE. Besides stating the list, I am also going to describe the ways by which we’ve done the analysis.
In addition, we broadly divide the analytical process in two ways, fundamental and technical. Firstly, I place two of the best small-cap stocks’ fundamental data, GMM Pfaudler and, Uni Abex Alloy Products.
GMM Pfaudler
Now let us get to the first company in our list of best small-cap stocks in NSE. Let us now analyse GMM Pfaudler from various angles.
Fundamental Analysis
GMM Pfaudler Limited was established in 1962 as Gujarat Machinery Manufacturers and listed on the Bombay Stock Exchange. In 1987 Pfaudler Limited, USA the world leader in Glass Lined equipment subscribed to 40% equity to form a joint venture. Pfaudler Inc. increased its stake to 51% in 1999 and then the name of the company was changed to GMM Pfaudler Limited. And, with over 5 decades of manufacturing experience, GMM Pfaudler Limited is a well-established and financially stable company. So, with a market share of more than 50% in Glass Lined equipment, GMM Pfaudler is the market leader in India.
Company Business
So, over the years GMM Pfaudler has diversified its product portfolio to include Mixing Systems, Filtration & Drying Equipment, Engineered Systems and Tailor Made Process Equipment. In 2008, GMM Pfaudler Limited acquired Mavag AG, Switzerland. Mavag supplies highly engineered equipment for critical Filtration, Drying and Mixing applications to the Pharmaceutical and Biotech industries of this company. In 2015, DBAG (Deutsche Beteiligungs AG), a leading German private equity company, acquired Pfaudler Inc., USA. GMM Pfaudler Limited is a leading supplier of engineered equipment and systems for critical applications in the global chemical and pharmaceutical markets.
Company Strategies
This company’s success basically depends on close and continuing interaction with its customers, application engineering expertise, innovation, customer support, and a competitive cost structure. As a customer-focused organization, this company strives to fully understand its customers’ needs to better anticipate their future requirements. Now, Pfaudler Limited also offer process solutions with in-house application engineering and technical support services to create a competitive advantage. A truly world-class organization, GMM Pfaudler Limited is an ISO 9001:2008 company.
More Details About the Company
This company has been accredited by ASME for the manufacture and repair of pressure vessels under the ‘U’ Stamp, ‘U2’ Stamp and ‘R’ Stamp, by TUV Nord for the manufacture of pressure vessels under CE 0045 and AD 2000-Merkblatt HP0. GMM Pfaudler Limited have also been approved by Special Equipment Licensing Office (SELO) for the supply of pressure vessels to the People’s Republic of China. This company welding workshop has been verified and recognized based on the requirements of the standard DIN EN ISO 3834-2 (EN 729-2) by TUV Nord. GMM Pfaudler Limited is headquartered in Mumbai, India with our manufacturing facility located in Gujarat, India.
Board Of Directors
- S Sivaram is the Chairman of this company.
- Ashok Patel is one of the directors of this company.
- Thomas KehI is a Director of the company.
- Dominic Deller is the Director of this company.
- Tarak Patel is the Managing Director of the company.
- Amrita Patel is the Director of this company.
- Khurshed Thanawalla is the Director of the company.
- Nakul Toshniwal is an Independent Director of this company.
Financial Report (Annual)
The company is a Small Cap company (having a market cap of Rs. 2085.77 Crore) operating in the Engineering sector.
The company’s key Products or Revenue Segments are Chemical Equipment which contributed Rs. 185.80 Crore to Sales Value (58.48 % of Total Sales), Stainless Steel Equipment which contributed Rs. 99.07 Crore to Sales Value (31.18 % of Total Sales), Others which contributed Rs. 32.50 Crore to Sales Value (10.22 % of Total Sales), Dip Pipe & Sparger which contributed Rs. 0.31 Crore to Sales Value (0.09 % of Total Sales)for the year ending 31-Mar-2018.
Financial Report (Quarterly)
However, according to the statement for the quarter ended 30-06-2019, the company’s report of Consolidated sales was Rs. 150.27 Crore. It was up 8.01 % from the last quarter’s Sales of Rs. 139.12 Crore. It was up 33.80 % from last year’s same quarter Sales of Rs. 112.31 Crore. Besides this, the company has reported a net profit after tax of Rs. 17.69 Crore in the latest quarter. As of 30-06-2019, the company has a total of 14,617,500 shares outstanding.
Latest News of the Company
- GMM Pfaudler Limited’s Standalone March 2019 Net Sales at Rs. 120.72 crores, up 37.35% Y-o-Y.
- GMM Pfaudler Limited has informed the Exchange regarding the Analysts/Institutional Investor Meet/Con. Call UpdatesIntimation on investors meets held on August 20, 2019.
- Proceedings of the 56th Annual General Meeting held on August 14, 2019.
- For the year 2019-20, the record date for payment of the first interim dividend was decided (as of August 22, 2019).
- GMM Pfaudler Ltd has informed BSE that the Board of Directors of the Company is at its Meeting held on August 13, 2019.
Technical Analysis
This is one of our technical analysis scanning platforms (MarketSmith India) through which we’ve got the result of the stock. As you can see in the chart, the price is moving upward and its EPS Strength, Price Strength, and Buyer demand are high except for group rank. This is a weekly chart and the volume is also pretty good. So, the stock has a positive sign to move in an upward direction in the future.
Uni Abex Alloy Products Limited
Our next small-cap company of NSE in the list is Uni Abex Alloy Products. Let us analyse the company.
Fundamental Analysis
So, Uni Abex Alloy Products Limited is a part of the Neterwala Group which has diverse interests in Metallurgy, Software, Specialty Chemicals, Engineering, Geology, Oil and Gas and Environment.
About the Company
Incorporated in 1972, Uni Abex Alloy Products Limited is a pioneer and leading manufacturer and exporter of Centrifugal and Static Castings in Heat Wear and Corrosion Resistant Stainless Steel Alloys. Therefore, it has an excellent track record of supplying critical components across different industry segments.
So, Uni Abex Alloy Products is engaged in producing static, centrifugal castings and assemblies in heat and corrosion-resistant alloys and is a leader in alloy steel castings for decanters and reformer tubes.
Products
- REFORMER TUBES / CATALYST TUBES
- AIR INJECTION TUBE
- FEED TUBES
- CLAMPING FLANGE
- COAL THROW PIPE
- SWIRLERS
- RADIATION PROTECTION TUBE
- FURNACE ROLLERS
- ROT ROLLS
- NORMALIZING FURNACE ROLLS
- RADIANT TUBES
- SINK ROLLS
- STABILIZER ROLLS
- ENTRY /EXIT SEAL ROLLS
- WATER-COOLED HEARTH ROLLS
- SOAKING ROLLS
- DEFLECTOR ROLLS
- HOT BRIDLE ROLLS
- DFH ROLLER ASSEMBLY
- RADIANT TUBES
- DECANTER BOWLS
- BOWL CONES
- BOWL CYLINDER
- SCROLL PIPES
- END HUBS
- FULLY MACHINED PARTS
- RING SEGMENTS
- RADIANT TUBES (I, U, W TYPE)
- RETORT
- BASE TRAYS / FIXTURES
- IMPELLER FANS
- HEARTH ROLL
- SEALING PLATES
- DIFFUSER SEGMENTS FOR BELL or BATCH ANNEALING FURNACE
- CHARGING or DISCHARGING ROLLER FOR REHEATING FURNACE
- HEATING ELEMENTS FOR ANNEALING FURNACE OF DECARB LINE
- RADIANT COILS
Board of Directors
- F D Neterwala is the Chairman of this company.
- H R Prasad is the Director of the company.
- A. F. Naterwala is the Director of this company.
- M K Fondekar is one of the directors of the company.
- Jimmy Parakh is an Independent Director of this company.
- R B Mehta is the Director of the company.
- F K Banatwalla is the Director of this company.
- PF Neterwala is a Director of the company.
- Jimmy Parakh is the Director of this company.
Financial Report (Annual)
Now, the company was incorporated in the year 1972, is a Small Cap company (having a market cap of Rs. 93.90 Crore) operating in the Industrial Consumables sector.
Here, the company’s essential Products or Revenue Segments include Castings (High Alloy Steel) which contributed Rs. 79.97 Crore to Sales Value which is 97.11 % of Total Sales. Besides this, Export Incentives contributed Rs. 1.26 Crore to Sales Value which is 1.52 % of Total Sales. Other Operating Revenue that contributed Rs. 1.12 Crore to Sales Value (1.35 % of Total Sales) (As of the year ending 31st March 2018).
Financial Report (Quarterly)
For the quarter ended 30th June 2019, the company has reported a Standalone sales of Rs. 26.05 Crore which is down -4.93 % from last quarter’s Sales of Rs. 27.40 Crore. It is up 54.60 % from last year’s same quarter Sales of Rs. 16.85 Crore Company has reported a net profit after tax of Rs. 2.35 Crore in the latest quarter. The company has Walker, Chandiok, and Co.LLP as its auditoRs. As of 30th June 2019, the company has a total of 1,975,000 shares outstanding.
Latest News about the Company
- Please find enclosed Standalone Unaudited Financial Results of the Company for the quarter ended 30th June 2019. Also, find enclosed Limited Review Reports by the Statutory Auditors of the Company as of 13.8.2019 on Standalone Unaudited Financial Results.
- UNI ABEX ALLOY PRODUCTS Limited has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 13/08/2019, inter alia, to consider and approve Board Meeting To Consider Unaudited Financial Results For The 1st Quarter ended 30th June 2019.
Technical Analysis
The above scan is taken from MarketSmith. The chart reflects EPS strength, Price Strength, and Buyer Demands are high. However, this is a weekly chart and the volume is also high enough. Here, we place the chart in front of you to make you understand the growth possibility of the share.
Other Small Cap Stocks List in NSE to Watch
Now, Apart from the above two, there are also other small-cap stocks listed NSE to watch. Among them, Balmer Lawrie Investments Ltd is important.
Fundamentals of Balmer Lawrie Investments
In addition, this is a 10-year fundamental x-ray of the company, taken from MoneyWorks4me. Hence, The fundamental scan reflects its previous 10 years’ financial track record including operating income, adjusted EPS, Book value/share, Net profit, etc. So, besides this, there are other key financial ratios available here.
Technicals of Balmer Lawrie Investments
So, this is the technical scanning outcome of the stock. Now, the rating is moderately good and the volume is also reasonable. However, you may go in-depth through the scanning. So, this is a weekly chart, taken from the MarketSmith platform.
Therefore, other top best small-cap stock list is:
- Granules India
- Avanti Feeds
- Cyient
- HCL-Insys
- Indiabulls Real Estate
Conclusion
In conclusion, the list of small-cap stocks in NSE that we discussed offers investors exciting opportunities to invest in high-growth companies. Whether you choose farm emulsifiers or biotech product manufacturers, investing in small caps comes with enhanced risk-reward opportunities compared to larger equity holdings. It is important for all investors to understand their risk tolerance before making any investment decisions and seek unbiased financial advice if needed.