5 Small Cap Stocks To Outperform In India [2019]

By | April 11, 2019

Looking for small cap stocks to invest in India that may likely to outperform in 2019? 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 a growing phase and likely to outperform in the near future. Moreover, its market cap is above 5200 crores and P/E ratio is around 17.



Technically stock price has corrected a bit and you can invest in it for a target of 540 followed by 680 with a Stop Loss at 350. If you are a long term investor, then you can expect the price to move beyond 950+.

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.

Performance
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Avanti Feeds -0.62 5.35 -9.32 -54.15 44.08 84.67 76.71
NIFTY Smallcap 100 0.10 2.77 3.56 -30.91 8.82 13.86 15.10
NIFTY FMCG 0.88 1.36 8.02 14.55 17.22 12.68 19.86

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 2400 crores and P/E ratio is around 16.

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.

Performance
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Jamna Auto Inds. -5.70 -3.85 -17.52 -24.12 32.45 54.70 45.82
NIFTY Smallcap 100 0.10 2.77 3.56 -30.91 8.82 13.86 15.10
NIFTY Auto -3.99 -4.37 -2.59 -23.87 5.52 11.26 23.17

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 7100 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 530.

Performance
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Cyient 0.60 -3.89 -6.81 7.05 12.22 12.45 29.91
NIFTY Midcap 100 -1.06 0.54 3.04 -16.96 12.30 17.73 17.55
NIFTY IT 1.85 -0.97 -1.21 18.32 10.16 7.74 20.96

Granules India

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

Granules India is one of the small-cap stocks having a market cap of over 2200 Crore and P/E ratio is over 13. Many veteran investors are investing in it as people believed it has the potential to become a multibagger stocks.

Currently, Granules India’s stock price is trading at 89 and its very short-term target is at 150. It has a strong and multiple resistance levels at 150 and is likely to break out in the upside.

If it goes beyond 150 and consolidates above this level, then it will skyrocket within a very short time. Just put a Stop Loss at 70 on a closing basis and hold the stocks without panic.

Performance
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Granules India 1.73 4.05 -6.46 -34.67 -5.85 36.07 37.74
NIFTY Smallcap 100 0.10 2.77 3.56 -30.91 8.82 13.86 15.10
NIFTY Pharma 2.09 3.76 -7.96 -5.92 -7.00 2.98 14.80

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 800 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 20 and hold it for medium to long term. If it breaks 90 levels, then it may hit 180+ followed by 220 and 290.

Performance
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
HCL Infosystems -1.80 -0.61 -8.89 -58.48 -20.91 -2.55 -10.88
NIFTY Smallcap 100 0.10 2.77 3.56 -30.91 8.82 13.86 15.10
NIFTY India Consumption -1.52 -1.59 6.48 -2.70 13.65 14.35 17.18
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.

Please check and verify the data and also consult with your personal advisor before invest.

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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75 thoughts on “5 Small Cap Stocks To Outperform In India [2019]

    1. Ratan Kumar Post author

      Sorry, Ketan! We don’t provide services over the phone. However, you can always reach me via email for any query. Just mail me your doubts and query to ‘[email protected]’. You can also comment your doubts and that may also help other trader and investor. I will be very happy to help you.

      Reply
  1. Anant Parmar

    Hi Ratan,

    I am new to trading and wants to invest in some small cap, which doesn’t cost much as I am in learning phase.
    Could you please suggest through which share(s) should I start.

    Thanks in advance.

    Regards,
    Anant

    Reply
    1. Ratan Kumar Post author

      Hi Anant

      Next one year will be the year of Real estate, Infrastructure, Retail, and Pharma sectors. So, you can choose small-cap stocks belongs to these sectors. However, before you enter check their fundamentals. One such criterion is to select those companies whose debt is very low.

      Reply
  2. kalyan

    Hi Sir,
    I bought stocks of mitshi ltd . which is showing downtrend this week and only sellers.pl advice.

    Reply
  3. Ramu

    Hi Sir,

    I bought JPAssociate at 12.50 and RCOM at 17.10
    And Infibeam at 66.10.
    Could you please suggest me whether I can keep these for long term or sell now itself to avoid losses?
    Thanks in advance.

    Thanks,
    Ramu

    Reply
    1. Ratan Kumar Post author

      RCOM is hopeless better you exit asap next SL is at 10.50.
      Hold JP Associate and put SL at 6.20
      Hold Infibeam and put SL at 55. However, exit if you have some profit.

      Reply
  4. Ramu

    Could please provide your suggestions for my previous query?

    Thanks,
    Ramu

    Reply
  5. Amand

    Sir, Market is going up and down from last 3 to 4 days. I want to invest small and mid cap shares for medium to long term.I want to know good shares which gives good returns after few months… Please suggest me a few small and mid cap shares which I have to invest. Thanks in advance

    Reply
  6. Anand

    Sir, what about DHFL now @281.90. is it time to invest right now? shell i invest THE NEW INDIA INSURANCE, GENERAL INSURANCE, ICICI SECURITIES, INDOSTAR CAPITAL FINANCE ? i need suggestions about all above from you. Thanks in advance

    Reply
    1. Ratan Kumar Post author

      Start to accumulate these stocks in small chunks except ICICI Securities. You must have a long-term investment horizon to get a good return.

      Reply
  7. JOCHEF

    Sir, I want to invest in kss and mps infotecnics like that small cap stocks. But through which brokerage I can trade ?

    Reply
  8. Aniruddha Chatterjee

    Hi Ratan, I have accumulated Greenply considering the strong reality outlook. However, the stock is making new low everyday. Shall I accumulate further? I am a long term investor.

    Reply
    1. Ratan Kumar Post author

      Hold it. Broader markets are falling and so it also corrects. Keep adding in small chunks as the stock is down almost 75% from its high.

      Reply
  9. Piyush Goyal

    Hello Ratan Ji,
    I am willing to invest for next 5 years, please help me with good small caps to look.

    Thanks
    Piyush Goyal

    Reply
  10. Santhosh

    Hi Ratan,
    Can you please tell me about Dilip Buildcon, I ahve invested on 480. Share price is going down from day to day. even though it has strong order book. Is it because of so called NBFC crisis or any relation to the madya pradesh elections.
    Your insights will be very helpful.

    Thanks in Advance.

    Reply
    1. Ratan Kumar Post author

      You can hold the stock if your investment horizon is long-term. Having said that, don’t panic with the news flows as there is a global turmoil and broader markets are down.

      In fact, add some position to average the stocks or you may invest in other good stocks at the moment. However, you need to wait for some more time and let the trend reverses.

      The moment trend reverse, you can start investing in the stocks for long-term.

      Reply
  11. ARPIT AGRAWAL

    Hello Mr Ratan,
    I have rupees 3 Lacs to invest. I prefer for long term investment (2-3 years). I’m planning to buy Mphasis, LT, MM, Axis stocks. Should i also consider some small cap or penny stocks, which are good in their order books and fundamentals. Please help with your precious knowledge, i really don’t want to put amount in FD with mediocre returns. Thanks Much.

    Reply
    1. Ratan Kumar Post author

      You can also add these stocks BHARATFIN, GNFC, AARTIIND, MANAPPURAM, JUBILANT, VMART, MINDAIND, VENKYS, and GSFC. However, in case markets corrects further, then average your position.

      Apart from the stocks that you are willing to enter, my view on Mphasis is neutral. Having said that, you can go ahead with L&T, M&M, Axis Bank.

      Reply
  12. Rajkumar

    HI , I have plan to buy tata motors for 50000, for one year..is it good idea ?

    Reply
  13. Anuj

    Hello Ratan,

    What’s your view on Future Consumers? It looks promising in the last 2 years.

    Thanks in advance,

    Reply
    1. Ratan Kumar Post author

      If it breaks 35 levels, then it may go down further. You can enter only above 47 for a target of 52 followed by 70.
      However, if you can take some risk, then invest around 37-38 levels. Make sure you exit once it breaches 35.

      Reply
  14. anoop singh rajput

    Dear sir,
    it is safe to invest in yes bank and tata motors at present..

    Reply
    1. Ratan Kumar Post author

      Arvind has given breakout in the daily chart. You can hold the stock with an SL at 79 for a near term target of 95.50 followed by 112.

      Reply
  15. JS Vibishnan

    IKF Technologies and Indian Infotech I am still holding. Should I exit or keep for long term

    Reply
    1. Ratan Kumar Post author

      If you are holding these stocks, then just forget about them. Hope these might go up in the future. No technicals and fundamentals are backing. So, these are just hope trade.

      Reply
  16. yogesh

    Sir,

    I want to invest in some small cap stocks with long term perspective. Please advise

    Reply
    1. Ratan Kumar Post author

      You can invest in South Indian Bank, BEL, PNB, Engineers India, Berger Paint, Indian Bank, Hatsun, Jublfood, Lichsgfin, Oberoi Realty.

      Reply
  17. Mahesh Kapopra

    Dear Sir

    I have baughted 5000 share of Suzlon energy @rate of 7.90 and and more invested 2 lac for 5-6 month so sudggest 5 fund for good returns.

    Reply
  18. Harshal

    Hi Ratan,

    Can you provide your opinion on Galaxy Surfactant, Vakrangee, LT Foods, FSL and Rajoo Engineers. I am holding all of these with more than 35% loss. what’s your advice to Hold/Sell?

    Thank you so much!

    Reply
      1. Harshal

        Thank you for your reply. Could you please explain what do you mean by “Short” here.

        I am owning Galaxy Surfactant and Rajoo Engineers shares. You mean to sell them?

        Reply
  19. Rajendera Singh

    DEar Ratan G,

    Kindly suggest us, we want to purchase share for 1-3 years which one is good for profiting in future.

    Reply
  20. nickk

    Respected Sir,
    I am new to investing and can invest around 10k-20k each month. I am looking for long term investment ( 3-5 years).
    Just to start my journey , I have invested 1k amount in Rail Vikas , 5k in Ashok Leyland , 2k in polycab and around 1.5k in SAIL ( only few quantity of each). What are your opinion on these?
    Also , I am thinking investing into Motherson Sumi , Jamna auto , Orient Paper, ITC and DHFL. What’s your take/suggestion on these?.
    I will be waiting for you reply sir.

    Reply
  21. Krish

    Hi Sir, I have bought JB Chemicals, need your suggestion for this share.

    Reply
    1. Ratan Kumar Post author

      JB Chemical looks illiquid share. However, you can hold the stock till 328. You can exit around 370 levels.

      Reply
  22. Banamali Talukdar

    i have 4000 of yes bank. should i hold.

    Reply
    1. Ratan Kumar Post author

      You can hold yes bank if you are a long-term investor. One positive news may trigger the stock price to move higher and may test its swing high.

      Reply
  23. Vishal Sharma

    Sir, I want to buy 1000 shares of HCL [email protected]. Can I buy them at current level or should I expect further downfall till @10 ? Please guide.

    Regards,

    Vishal

    Reply
    1. Ratan Kumar Post author

      Not the right time to enter in HCL Insys. You need to wait a little bit and let it consolidate.

      Reply
  24. Vishal Sharma

    Is it worth spending money on HCL Infosystem or should I go for some other penny stock which you can suggest.

    Reply
  25. Vishal Sharma

    What should be the preffered buy range for HCL Infosystem stock ?

    Reply
  26. SIDDHARTH SINGH

    Dear Sir,
    It would be really very helpful for me if you can provide your guidance for below two investments.

    Investment Horizon for both will be Min 20 years and Maximum 25 years, my current age is 36 years.
    1. Monthly SIP for Rs 20000/- :- Which Mutual Funds should i opt considering i am ready for Risk and would like to have maximum returns so believe Small Cap and Mid Cap should be best but please do suggest. 5-10% hike per year in Monthly SIP.
    2. Lump Sum investment : Post selling my flat, clearing the leftover Loan amount and then paying tax i expect around 50 Lacs so please suggest where should i invest for maximum returns, Small and Mid cap or anything else ?

    Looking forward for your critical and valuable guidance. Thanks !

    Regards
    Siddharth

    Reply
  27. Satish Sharma

    Sir,

    I can take risk up to 50k : Looking to invest in Penny Stock for 3 – 5 years time. It will be great if you can share your advise which stocks from which sectors to buy.

    In addition I am looking to invest 3 lacs for long terms 5-7 years & then target for 7- 10 and on

    As i am very new in trading & its seem for me difficult to keep track of shares performance & hence I want to invest & forget for few years.

    I hope you will guide me with stocks to buy long terms in Penny & Small Cap or Mid cap or large Cap.

    Thanks.
    Satish Sharma

    Reply
    1. Ratan Kumar Post author

      Apart from the stocks mentioned in the post, you can start accumulating stocks like Yesbank, Tata motors, DHFL, Ashok Leyland, Jublfood, Arvind, Infibeam, CG Power.

      However, make sure you invest only 5-10% of your capital in a particular stock. Sit tight and keep these stocks for the long-term.

      Reply
  28. Devesh Tripathi

    Dear Ratan jee,
    Please guide with future of HCL infosys. it looks attractive at its current price of 13.5.
    probable stop loss and target price..??
    Also guide with few small cap stocks under INR 20 for a period of 1-2 years.

    Regards,
    Devesh

    Reply
    1. Ratan Kumar Post author

      You can buy HCL-Insys only above 14 with an SL at 13.20. However, if it is able to cross 15.50 then strong buy will come.
      Other small-cap stocks you may consider are DB Realty, Vaswani Industries, Opto Circuits, Super Spinning Mills

      Reply
  29. Vijai Sehrawat

    Sir,
    Want to invest 8 – 10 lacs for long term. Kindly suggest some good stocks. Also advise on HEG, Graphite India, Rain Industries, Goa Carbon, Philips Carbon, Marksons pharma and Birla cable

    Reply
  30. Suryabhan

    Hello Sir,

    Can you give your inputs on RNAVAL (Reliance Naval) stock ?

    Current Price is Rs.4 …Since Shipbuilding is booming industry in coming few years and government also concentrating on building ships for Navy and releasing big contract where Reliance Naval is also contender

    Is it good stock to buy in order to keep 1-2 years holding for profit

    Reply
      1. Suryabhan

        Thanks Sir for quick reply. I will certainly divert my investment from RNAVAL to Gujarat Pipavav

        Reply
  31. ramsingh

    Hi Ratan Kumar Sir,
    I hold Visesh Info from last 4 years at rs.0.45 level, but now price is is rs.0.10 level, so sir, suggest me price when will recovery what is the target price.

    Reply
      1. ramsingh

        sir, now price is rs.0.05 level so any chances price will up and will touch my buy level of rs.0.45 level, please,suggest me.

        Reply
          1. ramsingh

            sir,
            Visesh Info price again to touch atleast rs.0.45 level in medium term.,

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