Best Small Cap Stocks Under Rs 50: When new investors are starting out, they tend to look for stocks that are not too expensive. In fact, many of them start investing in stocks under Rs 50. Quite a lot of times, shares of good companies are trading under ₹ 50 and have not reached their true value or potential. In fact, many investors might even be unaware of these companies due to a lack of analyst and media coverage.
According to the latest classification of stocks by the Association of Mutual Funds in India (AMFI), small-cap companies are those companies, whose six-month average market capitalization is less than ₹ 16,800 crores.
In this article, we’ll take a look at the best small cap stocks under Rs 50. These stocks are chosen on the basis of market capitalization, revenue, profitability, and other fundamentals. Keep reading to find out!
Table of Contents
Best Small Cap Stocks Under Rs 50
Let’s take a look at the best small-cap stocks under ₹ 50:
Best Small Cap Stocks Under Rs 50 #1 – Easy Trip Planners
Easy Trip Planners Ltd (EaseMyTrip) is a leading name in the highly competitive travel agency market. It has a presence across key Indian cities such as Noida, Bangalore, Mumbai, and Hyderabad. Moreover, it has subsidiaries in Singapore, Dubai, and London.
Started in 2008, the company’s objective is to solve the problems of small B2B agents by providing them with a one-stop platform to make all their bookings. It has remained profitable every year since its inception, due to its lean and efficient organization. It got listed on the bourses in 2021.
Revenue & Profitability
| Year | 2020 | 2021 | 2022 |
| Revenue (in Crores) | ₹141.36 | ₹138.50 | ₹235.37 |
| Profit (in Crores) | ₹32.98 | ₹61.01 | ₹105.92 |
| Net Profit Margin | 23.33 % | 44.05 % | 45 % |
The company’s revenue, profit, and net profit margin show an increasing trend. Its revenue grew at a CAGR of 29.04%, while its net profit grew at a CAGR of 79.21%. Its net profit margin has also witnessed a massive improvement.
Key Metrics
| Particulars | Values | Particulars | Values |
| Face Value () | 1 | Dividend Yield (%) | 0.29 |
| Market Cap (₹ in Cr) | 8,184.01 | ROE (%) | 53.16 |
| EPS (₹) | 0.73 | Promoter’s Holdings (%) | 74.9 |
| Stock P/E (TTM) | 64.76 | Current Ratio | 1.32 |
| Industry P/E | 34.78 | Debt to Equity Ratio | 0.21 |
With a market capitalization of ₹ 8184.01 crores, Easy Trip Planners is a small-cap company. It has a high return on equity of 53.16% and an ideal debt-to-equity ratio of 0.21. It has a current ratio of 1.32, indicating that its current assets are higher than its current liabilities.
However, its price-to-earnings ratio (P/E) is very high compared to the industry P/E, indicating that the stock might be overvalued compared to its peers. The company’s promoters hold a 74.90% stake in it, followed by retail investors with 19.97%, FIIs with 2.31%, and DIIs with 2.82%.
Best Small Cap Stocks Under Rs 50 #2 – Rama Steel Tubes
Rama Steel Tubes is one of the most established names in the steel tubes and pipes market in India. It has a very sophisticated manufacturing facility and it invests in the latest advances in technology on an ongoing basis. With its 20% export rate, the company has a global presence in Countries like the United Kingdom, UAE, Sri Lanka, Ethiopia, Kenya, Uganda, Ghana, Kuwait, the USA, and more. It has over 300 distributors, has worked on more than 400 projects, and has more than 200 stock-keeping units (SKUs).
Revenue & Profitability
| Year | 2018 | 2019 | 2020 | 2021 | 2022 |
| Revenue (in Crores) | ₹376.70 | ₹504.15 | ₹352.81 | ₹470.43 | ₹768.17 |
| Profit (in Crores) | ₹12.33 | ₹5.92 | -₹1.90 | ₹12.38 | ₹27.32 |
| Net Profit Margin | 3.27 % | 1.17 % | – 0.54 % | 2.63 % | 3.56 % |
The company’s revenue, profit, and net profit margin show an increasing trend. Its revenue grew at a 4 Year CAGR of 19.5% and its net profit grew at a CAGR of 21.06% during the above period. Its net profit margin has also increased marginally.
Key Metrics
| Particulars | Values | Particulars | Values |
| Face Value () | 1 | Dividend Yield (%) | 0.16 |
| Market Cap (₹ in Cr) | 1,500.88 | ROE (%) | 24.19 |
| EPS (₹) | 0.52 | Promoter’s Holdings (%) | 65.4 |
| Stock P/E (TTM) | 31.69 | Current Ratio | 1.37 |
| Industry P/E | 12.48 | Debt to Equity Ratio | 1.09 |
With a market capitalization of ₹ 1,500.88 crores, Rama Steel Tubes is a small-cap company. It has an ideal return on equity of 24.19% but a slightly high debt-to-equity ratio of 1.09. It has a current ratio of 1.37, indicating that its current assets are higher than its current liabilities.
However, its price-to-earnings ratio (P/E) is very high compared to the industry P/E, indicating that the stock might be overvalued compared to its peers. The company’s promoters hold a 65.40% stake in it, followed by retail investors with 30.62%, FIIs with 3.33%, and DIIs with 0.65%.
Also Read – Best Mid Cap Stocks Under Rs 50
Best Small Cap Stocks Under Rs 50 #3 – Geojit Financial Services
Geojit Financial Services is a leading investment services company with a presence in India and the Gulf Cooperation Council Countries. It provides a wide array of products and services such as the distribution of mutual funds & insurance, equity and derivatives, commodity, PMS and financial planning. Its multi-channel distribution network comprises branches, an online portal, dedicated customer care and phone service that caters to all the investment needs of the clients.
Revenue & Profitability
| Year | 2018 | 2019 | 2020 | 2021 | 2022 |
| Revenue (in Crores) | ₹334.19 | ₹308.08 | ₹305.43 | ₹424.99 | ₹500.29 |
| Profit (in Crores) | ₹77.61 | ₹29.95 | ₹50.91 | ₹123.19 | ₹150.70 |
| Net Profit Margin | 23.22 % | 9.72 % | 16.67 % | 28.99 % | 30.12 % |
The company’s revenue, profit, and net profit margin show an increasing trend. Its revenue grew at a CAGR of 10.61% and its net profit grew at a CAGR of 18.05% during the above period. Its net profit margin has also increased.
Key Metrics
| Particulars | Values | Particulars | Values |
| Face Value (₹) | 1 | Dividend Yield (%) | 4.8 |
| Market Cap (₹ in Cr) | 1,040.05 | ROE (%) | 23.51 |
| EPS (₹) | 4.33 | Promoter’s Holdings (%) | 54.67 |
| Stock P/E (TTM) | 10.06 | Current Ratio | 1.59 |
| Industry P/E | 24.63 | Debt to Equity Ratio | 0.07 |
With a market capitalization of ₹ 1,040.05 crores, Geojit Financial Services is a small-cap company. It has an ideal return on equity of 23.51% and an ideal debt-to-equity ratio of 0.07. It has a current ratio of 1.59, indicating that its current assets are higher than its current liabilities.
Moreover, its price-to-earnings ratio (P/E) is significantly low compared to the industry P/E, indicating that the stock might be undervalued, compared to its peers. The company’s promoters hold a 54.67% stake in it, followed by retail investors with 43.44%, FIIs with 31.88%, and DIIs with 0.01%.
Best Small Cap Stocks Under Rs 50 #4 – SJVN
SJVN Limited is engaged in the business of electricity generation and providing consultancy for hydropower projects. The company is promoted by the government of India and the government of Himachal Pradesh. Presently the company has 6 operation electricity projects across India with a total capacity of ~ 2017 MW.
It plans to increase its electricity generation capacity to 5,000 MW by 2023, 12000 MW by 2023 and 25000 MW by 2040. It has stable revenue streams through long-term Power Purchase Agreements (PPAs) with state electricity boards and distribution licensees.
Revenue & Profitability
| Year | 2018 | 2019 | 2020 | 2021 | 2022 |
| Revenue (in Crores) | ₹2,228.50 | ₹2,644.66 | ₹2,702.80 | ₹2,485.39 | ₹2,417.00 |
| Profit (in Crores) | ₹1,221.57 | ₹1,362.58 | ₹1,561.18 | ₹1,645.72 | ₹989.80 |
| Net Profit Margin | 54.82 % | 51.52 % | 57.76 % | 66.22 % | 40.95 % |
The company’s revenue grew sideways, while its profit and net profit margin declined. Its revenue grew at a CAGR of -2.96% and its net profit grew at a CAGR of -10.19% during the above period. Its net profit margin has also declined, however, a net profit margin above 20% is considered to be good.
Key Metrics
| Particulars | Values | Particulars | Values |
| Face Value (₹) | 10 | Dividend Yield (%) | 6.19 |
| Market Cap (₹ in Cr) | 12,834.71 | ROE (%) | 7.63 |
| EPS (₹) | 3.06 | Promoter’s Holdings (%) | 86.77 |
| Stock P/E (TTM) | 10.67 | Current Ratio | 1.57 |
| Industry P/E | 11.87 | Debt to Equity Ratio | 0.52 |
With a market capitalization of ₹ 12,834.71 crores, SJVN is a small-cap company. It has a low return on equity of 7.63% and an ideal debt-to-equity ratio of 0.52. It has a current ratio of 1.57, indicating that its current assets are higher than its current liabilities.
Moreover, its price-to-earnings ratio (P/E) is slightly low compared to the industry P/E, indicating that the stock might be undervalued, compared to its peers. The company’s promoters hold an 86.77% stake in it, followed by retail investors with 7.11%, FIIs with 2.31%, and DIIs with 3.81%.
Also Read – Best Small Cap Stocks Under Rs 100
Best Small Cap Stocks Under Rs 50 #5 – Housing & Urban Development Corporation
Housing and Urban Development Corporation Ltd (HUDCO) is a techno-financing company. It is engaged in housing and infrastructure project finance (including retail lending) and provides consultancy services. Thus it is strategically important for the Government’s objective of housing for all. The company also has well-established relations with different state governments, making it a preferred lender for their projects.
Revenue & Profitability
| Year | 2018 | 2019 | 2020 | 2021 | 2022 |
| Revenue (in Crores) | ₹4,171.36 | ₹5,555.90 | ₹7,532.12 | ₹7,235.53 | ₹6,954.42 |
| Profit (in Crores) | ₹1,010.18 | ₹1,180.15 | ₹1,708.42 | ₹1,578.58 | ₹1,716.60 |
| Net Profit Margin | 24.22 % | 21.24 % | 22.68 % | 21.82 % | 24.68 % |
The company’s revenue and profit show an increasing trend. Its revenue grew at a CAGR of 13.63% and its net profit grew at a CAGR of 14.17% during the above period. Its net profit margin also remained the same.
Key Metrics
| Particulars | Values | Particulars | Values |
| Face Value (₹) | 10 | Dividend Yield (%) | 10.7 |
| Market Cap (₹ in Cr) | 8,890.44 | ROE (%) | 12.41 |
| EPS (₹) | 9.04 | Promoter’s Holdings (%) | 81.81 |
| Stock P/E (TTM) | 4.91 | Current Ratio | 0.24 |
| Industry P/E | 13.64 | Debt to Equity Ratio | 4.25 |
With a market capitalization of ₹ 8,890.44 crores, HUDCO is a small-cap company. It has a return on equity of 12.41% and a current ratio of 1.59, indicating that its current assets are higher than its current liabilities. Moreover, its price-to-earnings ratio (P/E) is significantly low compared to the industry P/E, indicating that the stock might be undervalued, compared to its peers.
The company is promoted by the Government of India which holds an 81.81% stake in it, followed by retail investors with 10.61%, DIIs with 7.28%, and FIIs with 0.30%.
In Closing
In this article, we took a look at some of the best small cap stocks under Rs 50. We understood the business that they are into and took a look at their revenue and profitability. Then, we saw key metrics related to each company. That’s all for this article folks. We hope to see you around and happy investing until next time.
You can now get the latest updates in the stock market on Trade Brains News and you can also use our Trade Brains Stock Screener to find the best stocks.
