Top 5 Smallcap Stocks to Buy for Up to 210% Return in 12 Months
Stocks to Buy
Stocks to BUY: 5 Smallcap Stocks with Potential Returns of Up to 210% in the Next 12 Months
Investing in smallcap stocks can be a rewarding strategy for those willing to embrace higher volatility in exchange for the potential of significant returns.
The smallcap segment, often characterized by companies with smaller market capitalizations, can offer substantial growth opportunities, especially for long-term investors.
If you’re looking for stocks that could potentially deliver significant gains in the next 12 months, there are several smallcap stocks that stand out in the market.
According to analysts, stocks like Rajesh Exports, Mobikwik, Shilpa Medicare, I.G. Petrochemicals, and Paisalo Digital offer remarkable growth potential, with expected returns ranging from 128% to an impressive 210%.
Based on the latest analyst estimates compiled by Trendlyne, these stocks have received “Strong Buy” ratings, signaling optimism from market experts.
Let’s dive deeper into why these smallcap stocks could outperform and deliver solid returns in the near future.
1. Rajesh Exports (Target Price: Rs 600)
Rajesh Exports, a prominent player in the gold jewelry export business, has caught the eye of analysts as one of the top smallcap stocks with huge upside potential.
The stock is currently trading at Rs 193.45, and analysts have set a target price of Rs 600, which implies a remarkable upside potential of around 210%. This could make it one of the most attractive options for investors looking for strong growth.
Despite experiencing a downturn of about 17% in its stock price so far this year, Rajesh Exports remains optimistic about its future prospects.
The company, which specializes in gold jewelry and has a global footprint in gold sourcing and exports, stands to benefit from potential recovery in the global gold market.
Analysts believe that the stock will bounce back in the coming months, as the company is well-positioned to capture market share and take advantage of higher gold prices.
Furthermore, Rajesh Exports’ solid business model and expansion into newer markets could drive strong growth.
Current Price (April 17): Rs 193.45
Target Price: Rs 600
Potential Return: 210%
2. One Mobikwik Systems (Target Price: Rs 700)
Mobikwik, one of India’s leading digital payment solutions providers, has been a stock in the spotlight for some time now.
Although the stock has fallen significantly by 53.74% this year, analysts believe that the company’s long-term prospects remain strong.
Mobikwik has been targeted with a price of Rs 700, representing a potential upside of 150% from its current price of Rs 279.
The digital payment market in India continues to grow rapidly, and Mobikwik, with its robust platform and diverse financial services, is poised to capitalize on this expanding market.
The company offers a range of services such as digital wallets, personal loans, insurance, and a host of other financial products.
With a huge untapped market and increasing adoption of digital payment solutions in India, Mobikwik is well-positioned to make a comeback.
Despite the year’s struggles, analysts believe that the company’s strong leadership, innovative approach, and strategic partnerships will help Mobikwik achieve its growth targets.
Investors willing to take on some risk could benefit significantly from this stock’s potential upside in the coming year.
Current Price (April 17): Rs 279
Target Price: Rs 700
Potential Return: 150%
3. Shilpa Medicare (Target Price: Rs 1525)
Shilpa Medicare, a prominent name in the pharmaceutical industry, is another smallcap stock that analysts are bullish on.
The stock is currently trading at Rs 664.10, with a target price of Rs 1525, which translates into an estimated 130% return from its current level.
Shilpa Medicare has faced a drop of 18.77% in its stock price this year, but analysts see this as a potential opportunity to enter the stock at an attractive valuation.
Shilpa Medicare specializes in manufacturing generic pharmaceutical products, including oncology and biopharmaceuticals.
The company has a strong pipeline of drugs, with a focus on high-demand therapeutic areas like cancer treatment, which has a growing market globally.
Moreover, Shilpa Medicare has been expanding its global reach, with its products being marketed in over 50 countries.
The pharmaceutical sector, especially in the oncology and biosimilar space, offers significant growth potential. With a strong foothold in the Indian and global markets, Shilpa Medicare is expected to benefit from increased demand for affordable healthcare solutions.
As the company continues to expand its product portfolio and enter new markets, analysts are optimistic about its future growth prospects.
Current Price (April 17): Rs 664.10
Target Price: Rs 1525
Potential Return: 130%
4. I.G. Petrochemicals (Target Price: Rs 1012)
I.G. Petrochemicals, a key player in the chemical sector, has garnered attention for its strong fundamentals and growth potential.
The stock is currently priced at Rs 446, and analysts have set a target price of Rs 1012, which represents a potential return of 130%.
Despite experiencing a drop of about 22% in stock price this year, I.G. Petrochemicals has solid growth prospects, making it an attractive option for investors seeking to capitalize on a recovery in the chemicals industry.
The company produces a wide range of petrochemical products, including phthalic anhydride, which is used in various industries such as plastics, coatings, and adhesives.
With strong demand in these industries, I.G. Petrochemicals is well-positioned to capitalize on global demand.
The company’s capacity expansion plans and efforts to diversify its product portfolio are expected to drive future growth, making it a stock to watch.
Current Price (April 17): Rs 446
Target Price: Rs 1012
Potential Return: 130%
5. Paisalo Digital (Target Price: Rs 75)
Paisalo Digital, a company operating in the fintech and microfinance sector, has emerged as another high-potential smallcap stock.
The stock is currently trading at Rs 32.9, and analysts have set a target price of Rs 75, indicating a potential upside of 128%.
While the stock has experienced a decline of 33.5% this year, the long-term growth prospects for Paisalo Digital remain strong, especially in the microfinance segment, which continues to expand in India.
Paisalo Digital provides microfinance solutions to underserved communities and individuals, offering small-ticket loans that cater to the financially excluded population.
As financial inclusion continues to rise in India, Paisalo Digital is poised to benefit from the growing demand for affordable credit.
Additionally, the company’s strong focus on technology and digitalization positions it well for growth in the evolving fintech landscape.
Current Price (April 17): Rs 32.9
Target Price: Rs 75
Potential Return: 128%
Final Remarks
Smallcap stocks can be a highly rewarding investment, but they also come with increased risks. The stocks highlighted above—Rajesh Exports, Mobikwik, Shilpa Medicare, I.G. Petrochemicals, and Paisalo Digital—are all showing strong growth potential, with analysts projecting significant returns over the next 12 months.
While these stocks have faced some challenges this year, their strong fundamentals and promising outlooks make them worthy of consideration for those willing to take on the associated risks.
Investing in smallcap stocks requires careful research and a long-term perspective. Make sure to consult with a financial advisor and assess your risk tolerance before diving into these stocks. With the right approach, these smallcap stocks could offer substantial returns in the coming year.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Investing in stocks, especially smallcap stocks, carries inherent risks, including the potential for significant loss. Past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. The author and website do not accept any responsibility for any financial losses incurred as a result of using the information provided in this article.
