If you buy stocks of a right small cap stock, it can be a fortune building opportunity . Here is stock analysis of each stock discussed in small cap stock list from wealth insight magazine.
There is nothing more rewarding than to buy a small company just before its take-off stage. Later on, when it attains critical mass, institutions like mutual funds, pension funds, and others, pour their money into it — since it fits their internal risk criteria, they aren’t inhibited from higher allocations. This fresh funds influx drives prices higher.
It is mathematically easier for small-caps to grow at breakneck speeds, which is not possible for large-caps. To take an example, it’s much easier for a business with Rs 5 lakh turnover to double in size every year. That growth rate is probably impossible once the company attains say, Rs 100 crore turnover. For instance, Infosys clocked triple-digit growth in both revenue and profits for several years starting at base revenues of Rs 9.43 crore in 1992-93. It grew fast until it hit a topline of Rs 1,957 crore in 2000-01.
Don’t be afraid of small caps, despite the obvious risks. Some will fade into obscurity, others will remain small-caps, unable to scale up. Only a select few will be able to unlock true value. But those few are likely to be multi-baggers and ultimately, even one such candidate can over-compensate for several losers.
This small cap stock list was prepared by magazine by reviewing portfolios of small cal mutual funds to identify the small cap stocks that they are tracking.
We are going to have a look at stock analysis of each and every small cap stock that we can buy and create wealth for ourselves.
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