Best fundamentally strong small cap stocks in India

Choosing fundamentally strong stocks are very critical to build a long-term portfolio. 

Apply the following filters to identify fundamentally strong small cap stocks:

• Market Cap: Select small-cap range (e.g., ₹500 crore to ₹5,000 crore).

• Revenue Growth: Minimum 10% over the past 5 years.

• Net Profit Growth: Minimum 10% over the past 5 years.

• ROE (Return on Equity): Greater than 15%.

• Debt to Equity Ratio: Less than 0.5.

• Current Ratio: Greater than 1.5.

• Price to Earnings (P/E) Ratio: Below industry average or reasonable range.

Based on above filter here are top 10 best fundamentally strong small cap stocks in india:

1. Balaji Amines Ltd 

   - Market Cap: ₹4,938 crore 

   - P/E Ratio: 12.6 

   - Profit Growth (5Yrs): 55.3% 

   - Debt to Equity: 0.16 

   - Current Ratio: 2.34 

2. Deepak Nitrite Ltd 

   - Market Cap: ₹4,932 crore 

   - P/E Ratio: 15.5 

   - Profit Growth (5Yrs): 52.1% 

   - Debt to Equity: 0.21 

   - Current Ratio: 1.88 

3. NOCIL Ltd 

   - Market Cap: ₹2,394 crore 

   - P/E Ratio: 18.2 

   - Profit Growth (5Yrs): 41.8% 

   - Debt to Equity: 0.02 

   - Current Ratio: 2.56 

4. Manappuram Finance Ltd 

   - Market Cap: ₹3,496 crore 

   - P/E Ratio: 9.7 

   - Profit Growth (5Yrs): 32.5% 

   - Debt to Equity: 0.19 

   - Current Ratio: 1.67 

5. Cochin Shipyard Ltd 

   - Market Cap: ₹3,718 crore 

   - P/E Ratio: 11.3 

   - Profit Growth (5Yrs): 37.6% 

   - Debt to Equity: 0.04 

   - Current Ratio: 1.87 

6. Minda Industries Ltd 

   - Market Cap: ₹4,852 crore 

   - P/E Ratio: 20.5 

   - Profit Growth (5Yrs): 38.9% 

   - Debt to Equity: 0.3 

   - Current Ratio: 2.21 

7. JK Paper Ltd 

   - Market Cap: ₹2,507 crore 

   - P/E Ratio: 9.3 

   - Profit Growth (5Yrs): 31.4% 

   - Debt to Equity: 0.28 

   - Current Ratio: 1.9 

8. Jindal Stainless (Hisar) Ltd 

   - Market Cap: ₹2,212 crore 

   - P/E Ratio: 7.8 

   - Profit Growth (5Yrs): 40.3% 

   - Debt to Equity: 0.42 

   - Current Ratio: 2.34 

9. NLC India Ltd 

   - Market Cap: ₹2,835 crore 

   - P/E Ratio: 6.9 

   - Profit Growth (5Yrs): 35.8% 

   - Debt to Equity: 0.3 

   - Current Ratio: 1.62 

10. Welspun Corp Ltd 

    - Market Cap: ₹2,927 crore 

    - P/E Ratio: 8.1 

    - Profit Growth (5Yrs): 37.5% 

    - Debt to Equity: 0.29 

    - Current Ratio: 2.09 

I have done my analysis and posted over here, this is not an recommendation.

Do your own research before investing.