Small-cap stocks like Indigo Paints and Go Fashion are showing strong growth and mutual fund interest.
Key sectors include fashion, auto parts, insurance, housing, and power trading, with rising demand.
Market watchers are tracking RBI policies and Q1 earnings to gauge future movement in the small-cap space.
Small-cap stocks are getting attention again. These are companies that are smaller in size compared to giants like Reliance or HDFC, but they can grow fast. After a slow start to the year, many of these stocks have bounced back. In June, the Nifty Smallcap index went up by over 5 percent. This shows that investors are starting to believe in the potential of these companies.
Here are some small-cap stocks that have been performing well recently. Many of these are being picked by mutual funds because they have strong businesses and a good chance to grow further.
CMP: 1,193.70
Indigo Paints is a newer name in the paint industry. It is not as big as Asian Paints yet, but it is doing well in smaller towns and cities. Its revenue has grown by around 19 percent every year for the past five years. The company is also earning good profits. Mutual funds have increased their investments in Indigo Paints, which shows that they trust its growth plans.
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CMP: 896.10
Go Fashion owns the brand Go Colors, which sells leggings, palazzos, and other types of clothing for women. Even during tough times, this company kept growing. It has stores in many cities and towns and is earning a return on equity of about 22 percent. As more women start shopping for stylish clothes, this company could grow even more.
CMP: 522.04
Medi Assist provides insurance and wellness services to companies. As more people care about health and more firms offer health benefits to workers, this company is in the right space. It handles a large number of health insurance claims and is making good profits.
CMP: 11,000.00
Sundaram Clayton is part of the TVS Group. It makes aluminium parts that are used in cars, including electric vehicles. Since many EV companies prefer lighter parts, this company is in demand. A lot of its products are sent to other countries, and it works with big global car brands.
Some other smaller companies, especially those linked with government projects or utilities, have also performed strongly:
BEML: Makes trains, metro coaches, and defence machines. It is getting more orders as the government spends on transport and defence.
Indian Energy Exchange (IEX): A platform where electricity is bought and sold. With more demand for power, this platform is being used more often.
Engineers India Ltd (EIL): Builds big industrial projects, especially in oil and gas.
HUDCO: Lends money for housing and urban development. It supports schemes like PM Awas Yojana, which help people buy affordable homes.
Ujjivan Small Finance Bank: Lends to small businesses and people who don’t usually get bank loans. It is growing fast and expanding across India.
These companies are not just growing fast; they are also making profits regularly. Even when the overall market is unstable, these small-caps have shown strength. Mutual funds and retail investors are buying them because they believe in their long-term success.
Most of these companies work in areas that are changing quickly. Health, fashion, housing, and electric vehicles are becoming more important. As cities grow and more people want better services, companies like these will likely see more business.
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Investors are now watching things like the RBI’s policy announcements, inflation rates, and company earnings for the April–June quarter. These factors will affect how these stocks move. Global news can also cause ups and downs in the market, so investing carefully is important.
Even with some risks, the small-cap space is full of interesting opportunities. Many of these companies are just starting to grow. With the right pick, a small-cap stock today could turn into a big success tomorrow.