MSME Stocks in India

MSME stocks are shares of publicly traded companies classified as Micro, Small, and Medium Enterprises (MSMEs) based on investment and turnover criteria.

MSME Stocks Today

Wednesday, 12 March, 2025

symbol Company ticker slug Sector Market Price 52W High 52W Low Market Cap (Cr.) PE Ratio Industry PE PB Ratio Div. Yield (%) ROE (%) 1YReturns 3YReturns 5YReturns Market Cap Label Industry Group Industry Sub Industry percentageChange
AJC Ajcon Global Services Ltd AJCON /stocks/ajcon-global-services-AJC Diversified Financials 63.76 89.17 31.31 45.37 36.30 16.38 1.85 0.00 5.25 76.38 51.81 183.38 Smallcap Financial Services Diversified Financial Services Diversified Financial Services 0.02
ALSA Alacrity Securities Ltd ALSL /stocks/alacrity-securities-ALSA Investment Banking & Brokerage 72.78 188.00 58.00 339.59 29.66 16.38 7.54 0.00 32.88 17.77 593.14 756.24 Smallcap Financial Services Capital Markets Investment Banking & Brokerage -4.92
ALSL Almondz Global Securities Ltd ALMONDZ /stocks/almondz-global-securities-ALSL Investment Banking & Brokerage 20.48 39.13 15.95 352.84 10.36 16.42 1.60 0.00 15.84 15.92 22.27 656.18 Smallcap Financial Services Capital Markets Investment Banking & Brokerage -4.61
ARIH Arihant Capital Markets Ltd ARIHANTCAP /stocks/arihant-capital-markets-ARIH Diversified Financials 63.06 124.80 49.20 656.54 9.31 16.38 2.04 0.79 24.35 9.01 -28.01 152.24 Smallcap Financial Services Diversified Financial Services Investment Banking & Brokerage 0.56
ARY Aryan Share & Stock Brokers Ltd ARYAN /stocks/aryan-share-and-stock-brokers-ARY Investment Banking & Brokerage 19.49 31.00 15.19 5.85 11.24 16.38 0.38 0.00 3.47 -3.75 194.86 208.39 Smallcap null Capital Markets null -2.51
ARYA Aryaman Capital Markets Ltd ARYACAPM /stocks/aryaman-capital-markets-ARYA Diversified Financials 224.50 1,030.00 100.81 268.89 41.69 16.38 6.53 0.00 18.49 122.70 723.85 580.30 Smallcap Financial Services Diversified Financial Services Investment Banking & Brokerage 0.00
CILS CIL Securities Ltd CILSEC /stocks/cil-securities-CILS Investment Banking & Brokerage 41.48 73.69 39.10 20.74 7.20 16.38 0.71 0.00 10.33 -18.39 39.19 355.82 Smallcap Financial Services Capital Markets Investment Banking & Brokerage 2.03
GCMS GCM Securities Ltd GCMSECU /stocks/gcm-securities-GCMS Investment Banking & Brokerage 0.92 1.37 0.75 17.48 -44.81 16.38 1.12 0.00 -2.86 1.10 -79.33 -91.64 Smallcap Financial Services Capital Markets Investment Banking & Brokerage -2.17
IGSL Inventure Growth & Securities Ltd INVENTURE /stocks/inventure-growth-and-securities-IGSL Investment Banking & Brokerage 1.52 3.40 1.39 159.60 13.27 16.38 0.72 0.00 5.59 -39.25 -61.00 37.34 Smallcap Financial Services Capital Markets Investment Banking & Brokerage -1.97
ITSL Indo Thai Securities Ltd INDOTHAI /stocks/indo-thai-securities-ITSL Investment Banking & Brokerage 1,899.75 2,200.15 236.00 2,153.33 135.17 16.38 28.69 0.07 23.38 518.61 520.33 10,663.46 Smallcap Financial Services Capital Markets Investment Banking & Brokerage 3.50

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MSME Stocks in india

Micro, Small, and Medium Enterprises (MSMEs) play a significant role in India’s economy, contributing to employment generation and industrial development. These enterprises are classified based on investment in plant and machinery or equipment and turnover. MSME stocks refer to publicly traded shares of companies that fall under this classification. This article provides an overview of MSME stocks, recent budgetary provisions affecting MSMEs, and key considerations for investing in this sector.

What are MSME Stocks?

MSME stocks represent publicly traded shares of companies classified as Micro, Small, and Medium Enterprises. These companies operate in various sectors, including manufacturing, services, and trade. The classification is based on investment in plant and machinery or equipment and turnover.

Classification of MSMEs in India

In India, MSMEs are categorised under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006. Here is the detailed classification:

Category Investment in Plant & Machinery/Equipment Annual Turnover
Micro Enterprise Up to ₹1 cr. Up to ₹5 cr.
Small Enterprise Up to ₹10 cr. Up to ₹50 cr.
Medium Enterprise Up to ₹50 cr. Up to ₹250 cr.

Implications of the Union Budget 2025-26 on MSMEs in India

  • Enhanced Credit Guarantee Scheme: The budget increased the credit guarantee limit for MSMEs from Rs. 5 cr. to Rs. 10 cr. to facilitate easier access to credit.
  • Manufacturing Incentives: The establishment of a National Manufacturing Mission was proposed to provide policy support and further the ‘Make in India’ manufacturing program. This initiative is expected to create a more conducive environment for MSMEs in the manufacturing sector, promoting growth and competitiveness.
  • Tax Reforms: The budget proposed transformative reforms in taxation, aiming to simplify tax rules and reduce litigation. These reforms are anticipated to benefit MSMEs by easing compliance burdens and fostering a more business-friendly environment.

Features of MSME Stocks in India

Investing in MSME stocks entails understanding their unique characteristics:

  • Growth Potential: MSMEs often operate in niche markets with significant expansion opportunities, offering the potential for substantial returns.
  • Volatility: Due to their size and market position, MSME stocks can exhibit higher volatility compared to large-cap stocks.
  • Liquidity: MSME sector stocks may have lower trading volumes, leading to liquidity constraints for investors.
  • Regulatory Environment: MSMEs benefit from various government schemes and incentives aimed at promoting their growth and sustainability.

Eligibility and Documents Required for MSME Registration

For a business to be recognised as an MSME in India, it must register under the Udyam Registration portal. The classification criteria are:

  • Micro Enterprise: Investment up to Rs. 1 cr. and turnover up to Rs. 5 cr.
  • Small Enterprise: Investment up to Rs. 10 cr. and turnover up to Rs. 50 cr.
  • Medium Enterprise: Investment up to Rs. 50 cr. and turnover up to Rs. 250 cr.

The required documents for registration include:

  • Aadhaar Number: Of the proprietor, managing partner, or authorised signatory.
  • PAN Card: Business PAN for companies and personal PAN for proprietors.
  • Business Address Proof: Utility bills, lease agreements, or property tax receipts.
  • Bank Account Details: Copy of cancelled cheque or bank statement.

Registration provides access to various benefits, including priority sector lending, tax exemptions, and eligibility for government schemes.

How to Invest in MSME Stocks?

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have dedicated platforms—BSE SME and NSE EMERGE—for listing MSMEs. These platforms facilitate capital raising and provide visibility to small and medium enterprises.

Investing in MSME stocks that are listed on NSE is similar to investing in any other stock:

  1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
  2. Conduct thorough research into the top MSME stocks in India that interest you. Investors can use tools like the Tickertape Stocks Screener to do this. The screener offers 200+ built-in filters, and investors can choose the parameters to research MSME companies listed in stock market and generate MSME stocks list with MSME share prices based on various parameters.
  3. Place a ‘Buy’ Order on the top MSME stocks of your choosing.

How to Select the Best MSME Stocks for Your Portfolio?

When evaluating MSME stocks on the MSME sector stocks list, several factors can help investors understand their potential performance.

  • Financial Health: Companies with stable financial statements, positive revenue growth, and manageable debt levels are often considered more resilient. Analysing balance sheets and cash flow statements provide insights into their financial standing.
  • Industry Position: MSME stocks in NSE operate in various sectors, and a company’s competitive advantage in its industry can determine its sustainability. MSME stock market trends, demand cycles, and innovation capabilities influence how well an MSME performs against competitors.
  • Growth Prospects: MSME companies listed in the stock market may have ambitious expansion plans, new product lines, or strategic partnerships that enhance future performance. Examining their long-term business strategies, customer base, and innovation potential provides an understanding of their scalability.

Who Should Consider MSME Stocks for Investments?

  • Entrepreneurs and Business Owners: Those who run businesses or understand the MSME ecosystem may find MSME stocks in NSE appealing due to their industry knowledge.
  • Long-Term Investors: Individuals willing to hold investments over an extended period may see potential in MSME stocks listed in NSE as they are often set to evolve and expand.
  • Sector-Specific Investors: Investors focusing on particular industries, such as manufacturing, technology, or services, may explore MSME stocks within those fields.
  • Portfolio Diversifiers: Investors seeking to add variety to their portfolios might consider MSME stocks to gain exposure to emerging businesses and diversify their portfolios.
  • Policy Enthusiasts: Those who track government initiatives supporting MSMEs might be interested in MSME companies list NSE benefiting from such policies.

Benefits of Investing in MSME Stocks

  • Economic Contribution: MSMEs play a significant role in employment and industrial development.
  • Government Incentives: Many MSMEs benefit from subsidies, tax relief, and priority lending schemes.
  • Potential for Business Growth: MSMEs often focus on niche markets with expansion opportunities.
  • Exposure to Emerging Sectors: Some MSMEs operate in high-growth industries, offering access to developing trends.
  • Diversification: Including MSME stocks in a portfolio may reduce dependence on large-cap stocks.

Risks of Investing in MSME Stocks

  • Market Volatility: MSME stocks can experience significant price fluctuations due to external factors.
  • Liquidity Challenges: Many MSME stocks have lower trading volumes, making it difficult to buy or sell shares quickly.
  • Regulatory Changes: Shifts in government policies or compliance requirements may impact MSME operations.
  • Financial Constraints: Some MSMEs struggle with access to capital, affecting their ability to scale operations efficiently.

Factors to Consider When Investing in MSME Stocks

  • Market Conditions: Broader economic trends, including demand cycles and consumer behaviour, play a role in MSME stock performance.
  • Government Policies: Regulations, incentives, and tax benefits can support or challenge MSMEs in different industries.
  • Investor Sentiment: Market confidence and perception of risk impact MSME stock valuations and trading activity.

To Wrap It Up…

MSME stocks present a compelling investment opportunity, particularly for investors looking for high-growth potential. However, they come with higher risks, requiring careful selection and portfolio diversification. By understanding the features, benefits, and risks associated with MSME stocks, investors can make informed decisions aligned with their financial goals.

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Frequently Asked Questions (FAQs) About MSME Stocks

What are MSMEs?

Micro, Small, and Medium Enterprises (MSMEs) are businesses classified based on their investment in plant, machinery, or equipment and their annual turnover.

What is MSME Udyam registration?

Udyam Registration is an online government registration process that allows MSMEs to avail benefits such as loans, subsidies, and priority lending under government schemes.

What is the role of MSMEs in the Indian Economy?

MSMEs contribute significantly to India’s GDP, employment, and exports. They promote entrepreneurship and drive innovation across industries.

What is the MSME 45 days payment rule?

The MSME 45-day payment rule mandates that buyers of goods/services from MSMEs must clear payments within 45 days of receiving goods or services. Delayed payments attract penalties under the MSME Development Act of 2006.

What is the difference between MSMEs and SMEs?

While MSMEs are classified based on investment and turnover, SMEs (Small and Medium Enterprises) follow broader international definitions. In India, MSMEs have a structured classification with government-backed benefits, whereas SME is a generic term used globally.