Markets at all-time high but its the small-caps that are booming
For equity investors, small cap has become favourable investment option to make money in the stock market.
Mark Mobius, executive chairman of Templeton Emerging Markets Group, in an interview with Bloomberg, had said that Indian market may be expensive at the moment but small-cap stocks are still a good investment. "The big caps are expensive, the small caps are interesting", he had said.
BSE SmallCap, in past three years, has given returns of over 100%. In April 2014, BSE SmallCap was trading at 7,281.07 and currently stands doubled, at 15,355.24, giving returns of 111% in just three years.
BSE Sensex and NSE Nifty have given returns of 33% and 39%, respectively in these three years.
In these three years, there are companies which have become 'multibaggers' from small-caps.
Multibagger stock are those equity stocks which gave more than 100% return to investors. The term is most commonly used in emerging markets like India, China.
According to the data shared by Ankit Gor of Systematix, there are small-caps which have given returns of over 1000%. Here's a look:
As per the table, the top 10 small-caps gave over 450% returns to its investors in just two years.
Top four companies in the list gave over 1000% since 2015. Top in the list is Dwarikesh Sugar, which gave robust returns of 1866% in two years. Second is Allsec Tech, which gave returns of 1379%. Third is Uniply Inds. which gave returns of 1259% and fourthly Rushil Decor gave 1034% returns in two years.
The broader market, meanwhile, is expected to continue to rise. Sameet Chavan (Chief Analyst- Technical & Derivatives, Angel Broking said, We continue to remain bullish on the market and expect the index to gradually move towards 9400 first and then to achieve the next milestone of 9600."