Top Microcap Stocks Based on Net Profit Margin

Microcap stocks are publicly traded companies with low market capitalisation, typically between Rs. 100 cr. and Rs. 500 cr. While these under 100 cr market cap companies might not be well-known, they provide unique investment opportunities for those looking to diversify their portfolios with lesser known and potential multibagger opportunities. This article will delve into some of the best micro cap stocks in India based on their net profit margin and explore how to invest in them!

Top Microcap Stocks in India for 2025

Here are the top 10 micro cap stocks India sorted according to their net profit margin, including their market caps and micro cap share price:

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

• Market Cap: Set the lower limit to 100 and the upper limit to 500
• Net Profit Margin: Set to High – Sort from highest to lowest

Note: The data on the micro cap stocks list is dynamic and subject to real-time changes. This data is derived from Tickertape Stock Screener.
🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

High-volatility stock portfolios for investors with a high risk appetite

Try smallcase

DISCOVER

High-volatility stock portfolios for investors with a high risk appetite

Try smallcase

Overview of the Top Microcap Stocks in India

Here is a brief overview of the top microcap stocks in our list:

Available Finance Ltd 

Available Finance Ltd has demonstrated exceptional financial prudence over the past five years, maintaining a debt-to-equity ratio of just 0.27%, significantly lower than the industry average of 701.19%. Its liquidity is particularly impressive, with a current ratio of 2673.67% compared to the industry average of 207.28%, indicating robust financial health. Investors looking for micro cap stocks with huge growth potential should research this stock for its stability and growth metrics.

Thacker and Company Ltd

Thacker and Company Ltd stand out with its conservative leverage, reflected in a five-year average debt-to-equity ratio of 0.27%, against an industry norm of 31.35%. As one of the best micro cap stocks India, the company’s current ratio is 435.36%. It surpasses the industry average of 191.78%, highlighting its strong short-term financial stability. 

Titan Securities Ltd

Titan Securities Ltd has delivered stellar financial performance, with a remarkable current ratio of 19361.24%, far exceeding the industry average of 129.91%. It boasts a net profit margin of 98.88% and a return on equity (ROE) of 131.77%, underlining its profitability and efficient capital utilisation. This makes it a standout among the top 10 micro cap stocks with a proven track record.

VSF Projects Ltd

VSF Projects Ltd has achieved an impressive three-year revenue growth of 173.92%, showcasing its ability to scale operations. Its profitability is equally notable, with a net profit margin of 98.88%, positioning it as a standout performer in its sector. It is considered one of the micro cap stocks with growth potential due to its ability to generate sustained returns.

Maha Rashtra Apex Corporation Ltd

Maha Rashtra Apex Corporation Ltd demonstrates a balanced financial structure, maintaining a debt-to-equity ratio of 1.21%, well below the industry average of 348.87%. The company also delivers an ROE of 120.74% and a net profit margin of 98.44%, reflecting its strong return metrics and profitability. Investors seeking the best micro cap stocks India should explore this stock for its robust financial performance.

Get 500+ Readymade Stock Baskets

Created & managed by SEBI-registered experts

Try smallcase

Get 500+ Readymade Stock Baskets

Created and managed by SEBI-registered experts

Try smallcase

How to Invest in Microcap Stocks in India?

Here is how investors in India can invest in microcap shares in India:

1. Open a Demat/Trading/Brokerage account. This can be done through smallcase!

2. Research the top microcap stocks based on various fundamentals suited to your investment objectives. Investors can use stocks screeners like the Tickertape Stocks Screener to do this, utilising the 200+ filters available. For example, the nifty microcap 250 list is a useful resource for filtering out microcap stocks India has to offer.

3. Place a ‘Buy Order’ for the microcap stocks of your choice, suited to your risk appetite and investment objective. 

4. Monitor your microcap investments thoroughly after investing. These stocks can be volatile and require thorough monitoring.

Investors exploring under 100 cr market cap companies and micro cap share price trends should consult a financial advisor before investing.

Confused About Which Microcap Stocks to Pick? Consider Exploring these Microcap smallcases

A smallcase is a basket or portfolio of stocks and/or ETFs that represents a specific theme, strategy, or objective. smallcase offers a convenient, hassle-free way to invest in a diversified portfolio. It is created and managed by SEBI-registered investment professionals (also known as smallcase managers). Here are a few microcap smallcases based on particular themes:

1. Quantace Microcap(Monthly Picks) smallcase: This smallcase, managed by Quantace Research, is a portfolio of NIFTY Microcap 250 stocks, the microcap stock index, with a recommended minimum investment of 5-25 Lakhs. 

Quantace Microcap(Monthly Picks) smallcase by Quantace Research

2. Quantace Tiny Titans smallcase: This smallcase, managed by Quantace Research, is a treasure basket of 5-20 stocks selected from NIFTY Microcap 250 Universe. 

Quantace Tiny Titans smallcase by Quantace Research

Disclosures for the aforementioned smallcases.

What are Microcap Stocks?

If you’re wondering what is micro cap stock in India, microcap stocks represent companies with a market capitalisation between Rs. 100 cr. and Rs. 500 cr. Due to their low market cap and lower liquidity, they carry higher risks and volatility. 

These companies may not be well-known, and information about them may be limited. Micro cap stocks in India are often confused with penny stocks, which also have low values. However, they are not the same. 

How do Microcap Stocks Work?

Here is how micro stocks works:

• Lower market cap: Microcap stocks typically have a lower market capitalisation, between Rs. 100 cr. and Rs. 500 cr. Companies in the microcap stocks list, like the microcap 500, are high-risk and potentially volatile stocks, which usually have lower liquidity.
• Lesser-Known Companies: Micro cap companies in India are usually new/lesser known. These under 100 cr market cap companies span across a variety of different sectors and have the potential to become multibaggers. For investors seeking fundamentally strong micro cap stocks, identifying innovative companies in their growth stage can lead to high returns.
• Potential Multibaggers: Some microcap stocks, like Ceenik Exports (India) Ltd, have exhibited a 1-yr return of 1,709.23%. Another microcap company, Jhandewalas Food Ltd, has recorded 393.58% growth in the past year. These lesser-known companies with lower market caps have the potential to become multibaggers. However, investors need to conduct thorough research and consult a financial advisor before investing. 

Features of Microcap Stocks in India

Here are a few key features of micro cap companies in India:

• Potential for High Growth: Microcap stocks, unlike large-cap and blue-chip stocks, offer significant growth potential due to their small size and early-stage development. These companies often have innovative products, disruptive technologies, or unique business models that can create substantial value for investors. Investing in microcap stocks with huge growth potential at the right time can lead to significant returns. However, the speculative nature of these investments means that profits and revenues can fall significantly, potentially eroding your wealth by 80-90%. Unlike large mid-cap companies, microcaps often lack the resilience to recover from downturns.
• Highly Volatile: Microcap stocks are highly volatile, with prices that can fluctuate dramatically in a short period. This volatility arises from limited liquidity, a smaller investor base, and susceptibility to market sentiment. While this can lead to quick gains, it also poses significant risks, especially when choosing from the nifty microcap 250 stock list without thorough research. 
• Limited Attention from Market Analysts: Even the good microcap stocks often receive limited attention from market analysts, leading to market inefficiencies and fewer eyes on these stocks. However, investors skilled in independent research can identify undervalued opportunities in the list of microcap stocks and gain an advantage.

How to Choose the Best Microcap Stocks to Invest in?

Here are key steps to identify potential multibaggers in the microcap sector:

Economic Moat
An economic moat refers to a business’s sustained competitive advantage, enabling it to maintain profits and market share over time. Factors such as cost advantages, strong branding, exclusive licensing, network effects, and high switching costs contribute to a robust moat. However, a true moat must stand the test of time. Before investing in microcap stocks India, thorough research and consultation with a financial advisor are essential.

Management Quality
Management plays a pivotal role in microcap companies, where decisions heavily influence outcomes. Unlike large-cap companies, which often operate on established systems, microcaps demand management with a strong strategic vision and operational expertise. Evaluating management is critical when using a microcap stock screener to identify fundamentally sound companies.

Promoter Stake and Debt
A high promoter stake typically signals confidence in the business. You can research companies with low debt-to-equity ratios on the best micro cap stocks – screener, as high debt can increase financial strain during economic downturns.

Margin of Safety
The margin of safety measures the gap between expected returns and the break-even point. A higher margin minimises risks and offers protection against volatility. Investors should prioritise microcap stocks trading at a reasonable discount to their intrinsic value to safeguard against potential losses.

SWOT Analysis
Conducting a SWOT analysis—evaluating Strengths, Weaknesses, Opportunities, and Threats—helps identify key factors affecting a company’s performance. This tool is especially useful for analysing best micro cap stocks India, ensuring a well-rounded assessment.

Time Frame
Microcaps are inherently more volatile than large caps, with frequent price swings. Investors should set a clear investment horizon based on their goals and risk tolerance. Focusing on long-term fundamentals such as growth prospects, management quality, and valuation metrics can lead to sustainable returns, even amidst short-term market fluctuations.

Benefits of Investing in Microcap Stocks in India

Investing in microcap stocks offers several distinct advantages for investors looking to enhance their portfolio:

• High Growth Potential: Microcap stocks, with their smaller market capitalisation, can experience rapid growth, especially when operating in burgeoning industries or with disruptive business models. Microcap investing can translate into significant returns for investors who identify promising opportunities early on. 
• Diversification Benefits: Including microcap stocks in your investment strategy can effectively diversify your portfolio. By adding assets that behave differently from larger stocks and other asset classes, investors can reduce overall portfolio risk. This diversification is particularly valuable during periods of market volatility when different types of investments may perform divergently.
• Opportunities in Undervalued Markets: Microcap stocks often go unnoticed by institutional investors and analysts, creating opportunities for individual investors who conduct thorough research. These stocks may be undervalued or underfollowed, presenting opportunities to capitalise on their true potential before broader market recognition drives up prices.

With tools like microcap stocks screener, investors can identify undervalued stocks. Some of them are part of the nifty microcap 250 stocks list, to capitalise on their true potential before broader market recognition drives up prices. Diligent research and a long-term investment approach can help mitigate these risks while potentially harnessing the benefits of high growth and portfolio diversification.

Who Should Invest in Microcap Stocks?

Microcap stocks appeal to different types of investors:

• Experienced and Active Investors: Those skilled in financial analysis and research may discover hidden opportunities in microcap stocks. Active investors who enjoy tracking under 100 cr market cap companies often find them intriguing.
• Long-Term Investors: Investors with a patient outlook can benefit from the growth potential of microcap stocks over time. These investments may require tolerance for short-term volatility but can offer significant rewards.
• Risk-Tolerant & Opportunistic Investors: Microcap stocks carry higher risk compared to larger stocks. Investors comfortable with greater risk levels may find them attractive for their potential higher returns. However, assessing personal risk tolerance is crucial before investing in this segment.

These stocks can diversify portfolios but require careful consideration of risk and potential rewards.

Risks of Investing in Microcap Stocks

Microcap stocks pose significant risks for investors:

1. Their small size and limited liquidity make them highly volatile.
2. These stocks often lack transparency compared to larger firms, making it challenging for investors to make informed decisions. 
3. Moreover, their low trading volume and limited analyst coverage make them susceptible to market manipulation. 
4. Additionally, microcap stocks can be exploited for scams and fraud, underscoring the need for thorough due diligence before investing.

Factors to Consider Before Investing in Microcap Stocks in India

Investing in microcap stocks can present promising growth opportunities, but it also involves distinct considerations that set them apart from smallcap and penny stocks. Understanding these factors is crucial for making informed investment decisions:

• Market Capitalisation: Microcap stocks are defined by their smaller market capitalisation, typically ranging from Rs. 100 cr to 500 cr. This sets them apart from fundamentally strong small cap stocks, impacting their scale, scope, and financial resources. Due to their smaller size, microcap companies may offer higher growth potential but also face greater financial constraints and market risks.
• Liquidity Challenges: One significant challenge with microcap stocks is their lower trading volumes and liquidity compared to larger stocks. Limited institutional interest and a smaller investor base can make buying or selling microcap stocks challenging without significantly affecting their market prices. Investors should be cautious about potential liquidity issues, which could impact their ability to execute trades at desired prices.
• Risk and Volatility: Microcap stocks are inherently riskier and more volatile than larger stocks. Their smaller size and early-stage development expose them to greater market fluctuations, shifts in investor sentiment, and company-specific risks. Investors need to be prepared for increased price volatility and the potential for higher losses when investing in microcap stocks.

While they can offer opportunities for substantial returns, investors should conduct thorough research, assess their risk tolerance. Using a microcap stocks screener can help identify stocks with relatively higher liquidity to mitigate these risks.

1 Crore+ people use smallcase for their investments

Download App

1 Crore+ people use smallcase for their investments

Download App

To Wrap It Up…

Microcap stocks’ small size and early development stage can lead to high growth but also increased uncertainty. Understanding their features and differences is crucial for investors, who can then make informed decisions. Therefore, we have listed some of the top micro cap stocks based on their net profit margin, and also how investors may select microcap stocks suited to their own investment objectives. However, it is better to conduct proper research and consult a financial advisor before making investment decisions.

Frequently Asked Questions About Microcap Stocks

Stocks Under Budget

If you are looking for stocks under a particular price range, here’s the collection of stocks under a specifc budget:

Popular Group of Companies on NSE