5 Small Cap Stocks To Outperform In India – 2018

By | February 1, 2018

Looking for small cap stocks to invest in India that may likely to outperform in 2018? Picking the right small cap stocks is never so easy especially when markets at its peak level.



Read Also: Top 10 high dividend paying stocks in India to invest

Generally, stocks are categorized into large cap, mid cap, and small cap depending upon their market value. Basically small cap stocks hold a very small portion of the market share and comprise of near about 5% only. I have screened out 5 of my best small cap pick that may likely to outperform. Some of them already flare and I still believe that this stocks may move up further. However, you are advised to consult with your analyst before buying this counter.

5 Small Cap Stocks To Outperform In India

So, let’s have a look at the 5 small cap stocks that may give you a great return. These stocks are not for intraday trading and you must hold the stocks for at least one year or so.

Read Also: 3 Awesome Facts About Bharat 22 ETF For Long Term Investment

Avanti Feeds

Avanti Feeds was founded in 1993 and is leading manufacturer of Prawn and Fish Feeds and also manufactures Shrimp Processors. Its financial data also suggest that it is in growing phase and likely to outperform in the near future. Its market cap is around 12K crore and P/E ratio is little over 29.

Technically stock price has corrected a bit and you can invest in it for a target of 3000 with a Stop Loss at 2300. If you are a long term investor, then you can expect the price to move beyond 4000+. You can use buy on dips strategy on Avanti Feeds and accumulates its shares every time it corrected.

If you are into stock markets for a while, then you might know the nature of any stock is up and down. So, instead of panic, revised your strategy depending on the circumstances. Furthermore, if a stock is fundamentally strong, then you don’t need to worry about its price. All you need is the patience to hold the stock and it will never let you down and Avanti Feed is one of them.

Avanti Feeds Performance History

Performance
  YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Avanti Feeds 430.86 -9.66 37.93 433.40 98.88 136.56 76.33
S&P BSE Mid Cap 42.18 3.28 7.82 36.23 18.64 19.44 6.41
S&P BSE FMCG 30.70 2.64 4.88 30.79 9.35 11.58 17.21

Jamna Auto

Jamna Auto is one of the largest manufacturers of automotive products such as Tapered Leaf and Parabolic Springs used in commercial vehicles. Its market cap is over 2500 crores and P/E ratio is 25. Invest in Jamna Auto with a Stop Loss at 45 for a target of 80. Buy close to SL and hold it for a medium to long term view.

Jamna Auto Performance History

Performance
  YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Jamna Auto 95.74 11.19 31.97 87.98 63.02 44.44 22.99
S&P BSE Small Cap 51.52 3.45 10.94 47.83 17.53 19.77 4.57
S&P BSE Auto 25.82 2.23 5.29 24.40 10.74 18.51 16.02

Cyient

Cyient is one of the global service providers in engineering design, manufacturing, networks, and operations. Its main focus is on aerospace, rail, oil & gas, communications, power generation and heavy engineering. With a market cap of over 6400 crores and P/E ratio of 17, it looks great and may surprise you.

Although Cyient has already run up and still there is more steam left in it. It can correct a bit and may rally further. So, you can invest in Cyient with a Stop Loss at 430

Cyient Performance History

Performance
  YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Cyient 14.62 7.27 9.35 14.63 0.74 24.04 14.97
S&P BSE Mid Cap 42.18 3.28 7.82 36.23 18.64 19.44 6.41
S&P BSE IT 7.29 1.72 10.24 11.18 1.83 14.46 9.42

Granules India

Granules India is a pharmaceutical company based in Hyderabad, India. It manufactures tablets, Pharmaceutical Formulation Intermediates, and Active Pharmaceutical Ingredients. 

Granules India’s market cap is around 3300 crores and P/E ratio is just over 20. It is, in fact, growing at a steady rate. From a technical point of view, you can invest in it and expect it to move and touch its all-time high again. So, just put a Stop Loss at 95 and remain invested for long term.

Granules India Performance History

Performance
  YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Granules India 22.23 4.06 7.15 17.34 21.21 49.92 29.84
S&P BSE Small Cap 51.52 3.45 10.94 47.83 17.53 19.77 4.57
S&P BSE Healthcare -4.12 1.89 7.54 -9.11 -1.82 11.92 13.26

HCL-Insys

HCL-Insys is in the business of distribution of information technology services and solutions. Its product portfolio includes IT and System Integration services, career development solutions, and distribution of technology and mobility products. Its market cap is just over 1600 crores and likely to grow further.

Technically, the stock has multiple resistance at around 65 and once it breaks this level, it may touch 90. You can keep a Stop Loss at 30 and hold it for medium to long term. If it breaks 90 level, then it may hit 180+ followed by 220 and 290.

HCL Insys Performance History

Performance
  YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
HCL Infosystems -12.99 5.18 -1.24 -18.15 -3.08 6.08 -15.41
S&P BSE Small Cap 51.52 3.45 10.94 47.83 17.53 19.77 4.57
S&P BSE Teck 12.84 1.34 10.73 15.17 2.69 13.12 4.63

I hope you like this post on small cap stocks that may likely to perform in 2018. You can share your views in the comments section. If you like this post, then do share it on your social networks like Facebook, Twitter, and Google+.

Published on Feb 1, 2018

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