Small cap stocks is defined as having a market valuation of less than Rs. 5000 crores. These businesses typically have a smaller footprint and room for quick expansion. Smallcap companies typically have limited working capital, therefore their success is mostly based on operating revenue.
A quality smallcap business may still be in its growth stages, which is why it has a modest dividend yield. significant dividend payments will entail significant funding needs in an emergency, which will raise the cost of capital and lower the firm’s value (share price). Since retained earnings are the least expensive means of funding a company’s requirements, history has shown over and again that the best small-cap firms are those with modest dividend yields and strong capital gains.
We can now practically search for and evaluate some of the small-cap stocks that we have shortlisted from the full universe of small-cap stocks based on the measures given above. Having learned the skill of scouting for fundamentally sound small-cap stocks, let’s get started:
- Orient Electric Limited
Orient Electric Limited is a worldwide electrical equipment manufacturer situated in New Delhi, India, and a member of the CK Birla Group. It manufactures switchgear, lights, fans, and household goods. Orient Electric has manufacturing plants in Noida, Faridabad, and Kolkata. India is the exporter of fans to more than 35 foreign countries.
Prior to its demerger in 2018, Orient Electric was a part of Orient Paper & Industries.
Multiplying the market price of a company’s shares by the total number of outstanding shares yields the market capitalization, often known as the market cap. The market capitalization of Orient Electric was ₹ 4,909 as at 02-Jan-2024 .
- Rallis India Limited
Rallis India Limited is a division of Tata Group and a subsidiary of Tata Chemicals Limited. We provide farmers with cutting-edge products along the whole agricultural value chain through our commercial presence in Agri-Sciences, and we also educate them on how to use these products safely and effectively.
Share prices of companies are always fluctuating based on the state of the market. Rallis India’s closing price at 16:25 on January 2, 2024, is 263.4. A company‘s market capitalization, often known as its market cap, is calculated by multiplying its share price at the current market by the total number of outstanding shares. Rallis India’s market capitalization was ₹ 4,920.1 as of 02-Jan-2024.
An Indian public firm with a focus on gambling and hotels is Delta Corp Limited, formerly known as Arrow Webtex Ltd. Share prices of companies are always fluctuating based on the state of the market. At 16:29 on February 2, 2024, Delta Corp. closed at 156.7. A company’s market capitalization, often known as its market cap, is calculated by multiplying its share price at the current market by the total number of outstanding shares. Delta Corp’s market capitalization was ₹ 4,054.1 as of 02-Jan-2024 .
- Hikal Ltd.
started in 1988 Businesses in the biotech, specialty chemicals, agrochemical, and pharmaceutical sectors may trust Hikal as a partner. The value of a company’s shares fluctuates constantly based on the state of the market. At 16:33 on February 2, 2024, Hikal’s closing price is 306.2.
Multiplying the market price of a company‘s shares by the total number of outstanding shares yields the market capitalization, often known as the market cap. Hikal’s market value was ₹ 3,704.6 as of 02-Jan-2024.
- V-Mart Retail Ltd.
Established in 2002, V-Mart Retail Ltd. A family-friendly chain of retail stores, V-Mart provides clothing, accessories, and shoes for men, women, and children. Share prices of companies are always fluctuating based on the state of the market. V-Mart Retail closed at 2,051.7 on January 2, 2024.
A company’s market capitalization, often known as its market cap, is calculated by multiplying its share price at the current market by the total number of outstanding shares. V-Mart Retail’s market capitalization was ₹ 3,999.5 as of 02-Jan-2024.