Investing in small-cap stocks carries a higher risk than investing in large-cap and mid-cap stocks. However, these stocks can present a good opportunity for investors as they may experience a correction from higher levels, potentially yielding significant returns if timed correctly.
It’s essential to be prepared to hold onto these investments for at least two years and to carefully analyze the fundamentals before making any decisions.
5 Small Cap Stocks Recommended by Analysts for Long-Term Investors
According to market analysts, there are five small-cap stocks expected to show significant growth in the future:
1. West Coast Paper Mills:
- Current stock price: Rs. 574
- 52-week high: Rs. 815
- Return on Equity (RoE): 23.8%
- Net margin: 13%
- Market value: Rs. 3,820 crores
2. Novartis India Limited (Novartis India):
- Current stock price: Rs. 1,093
- 52-week high: Rs. 1,240
- Return on Equity (RoE): 11.2%
- Market value: Rs. 2,700 crores
3. Kalyani Steels:
- Current stock price: Rs. 778
- 52-week high: Rs. 1,083
- Return on Equity (RoE): 15.6%
- Market value: Rs. 3,370 crores
4. RPG Life Sciences:
- Current stock price: Rs. 2,105
- 52-week high: Rs. 2,296
- Return on Equity (RoE): 25.7%
- Market value: Rs. 3,460 crores
5. Wendt Tea India Limited (Wendt Ltd):
- Current stock price: Rs. 14,567
- 52-week high: Rs. 17,000
- Return on Equity (RoE): 20.4%
- Net margin: 17.6%
- Market value: Rs. 2,890 crores
Please note that this information is provided for informational purposes and reflects the analysts’ opinions. Before investing in the stock market, seeking expert advice is crucial to ensure a secure investment.