List of Top Small Cap Stocks

Small-cap stocks are the companies that start from rank 251 onwards based on average market capitalisation.

Small-cap stocks offer significant growth potential as they can expand rapidly. Additionally, they help diversify a portfolio and may outperform large-cap stocks over the long term.

Small-cap stocks are ideal for investors seeking higher growth potential and willing to take on greater risks. They are suitable for those with a long-term investment horizon and a tolerance for market volatility.

Small-cap stocks are more volatile and carry higher risks. Hence, before investing, you must consider factors such as the company's financial health, fundamentals, growth prospects, industry conditions, management quality, and market trends.

Key features of the best small-cap stocks include:

• Huge growth potential
• Strong revenue growth
• Innovative products or services
• Competitive edge in their industry
• Operating in high-growth sectors

Pros of investing in small-cap stocks include high growth prospects and the potential for higher returns. However, the cons include higher volatility and liquidity risks.

Due to their higher volatility, small-cap stocks are riskier than large-cap stocks.

As per SEBI guidelines, the list of small-cap stocks is revised every six months based on the average market capitalization of listed companies. For the six-month period ending on June 30, 2024, small-cap stocks include Tata Chemicals Ltd, 360 ONE WAM Limited, Vedant Fashions Limited, ICICI Securities Limited, and SUN TV Network Limited, among others.