Small Cap Stock Picks for Long Term Investment

In the last financial year 2019-2020, the bluechip stocks rallies well in support to stock index. Now its time to focus on small cap share for long term investment gain.

No doubt the large cap stock is more secure and the business modules is well balanced. But it doesn’t mean that investing in fundamentally good small cap companies may give you less returns comparing to large cap shares.

Its all about the research, future growth and company management which you need to check before investing shares. These applicable for all the corporates listed in the stock market. As you know investing in stock market is subjected to market risk.

Why should you go for Small Cap Stock Investment in 2020 ?

I have a proof in 2015-2017 you can check the past returns of the small cap mutual fund and small cap share annual gains throughout that period, it would not be less than 50%. Investor who invested money in small cap companies they know the real figures in actual.

Being a Financial Advisor i expect a bull rally to come after the Corona Virus waves go away across the world. I would like to share few small cap company name which would you like to add in your portfolio.

Top Small Cap Stock Investment in 2020:

  1. Khadim India Limited: Khadims is a footwear retailer in India. The Company is primarily engaged in the business of manufacturing/retail business of footwear, leather accessories and deals in other lifestyle household consumer goods. The khadim share price is Rs.81 as per market close. One can blindly invest for long term profit for upside move 60% from current market price. We can’t stop ourself buying shoes for us and for our dependants.
  2. Avanti Feeds Limited: Avanti Feeds Ltd is a manufacturer of prawn and fish feed, and shrimp processor and exporter. The Company’s principal products or services are shrimp feed and processed shrimp. In few months back Avanti feeds share was trading price near Rs.800 which is now available at much discount price. Avanti Feeds Ltd Share price Rs.284 as per market close price. You can go for these share because the company is fundamentally strong and sound.
  3. Himadri Speciality Chemical Limited: HSCL is engaged in the business of manufacturing various grades of coal tar pitch and other byproducts derived during the distillation process. In India chemical export business earns hefty profit during the whole year. HSCL Share price is Rs.35 as per market close price and its all time high price is Rs.121. One can look for these shares in their portfolio.
  4. LT Foods Limited: LT Foods Ltd is engaged in the business of milling, processing and marketing of branded and non branded basmati rice and manufacturing of rice food products in the domestic and overseas market. Most of the people might have heard of name Daawat basmati rice the key supplier across the nation is LT foods ltd. Daawat LT foods current Share price is Rs.22. For small retail investors Daawat share is recommended to hold in your portfolio.

These are the few small cap stock which i discussed in this forum for long term investment purposes. You can comment us for more small cap stock to add.

admin

Hi i am Samiran Debnath Admin of this website. I am Financial Advisor by profession build client portfolio in stock market and Mutual Fund. I help people to dematerilise physical shares into electronic mode opening demat account. Help clients to choose best insurance policy for them. I love sharing my views on stock market and the benefits investing in SIP and Mutual Funds.

2 Responses

  1. April 3, 2020

    […] Small Cap Stock Picks for Long Term Investment […]

  2. May 3, 2020

    […] there is a plenty of beaten small cap and midcap shares available at mouth watering price and can be added in portfolio cart for long […]

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