Rising Stars : Small Cap Stocks

Small cap stocks are those companies which have started growing. The Risk - Reward ratio is usually high. If the company succedes, then investor makes multibagger returns. Otherwise, there is potential risk of losing large part of the investment. For that reason, every company - be it infosys or Bharti had to start as small cap and eventually grow into a midcap and then mature into a largecap company.

Following are some of the smallcap's which are doing well. Investors can keep an eye on them and accumulate at suitable price.


Zydus Wellness: This is a 350 Crore FMCG arm of Zydus-Cadilla Group. Main products are: Sugar Free tablets, Nutralite and Everyuth. It commands 85% market share in sugarfree (lowcal sweetner). Company is expected to grow at 20%. Company aims to achieve revenue target of Rs.500 Crores by 2012-2014.

Wabco India: is a 75% subsidary of WABCO Holdings USA. It is a supplier of auto components to commercial vehicle industry. Long term looks good for this company, since Road infra development is vital to india's growth.

Other stocks listed can be considered for investing after studying their business model and earnings visibility.