Smallcap stocks can turn into Midcap stocks or even to large cap stocks in the medium to long term. There are hundreds of smallcap stocks in India. However, picking up right smallcap stock is a biggest challenge. How about picking up a small cap stock that tripled in last 3 years? Would you be excited in picking up a small cap stock that consistently tripled every 3 years in the past? Would you be super excited to know if any Small cap stock turned 1 Lac to 1.15 Crore in 6 years? In this article we would provide 5 Best Smallcap Multibagger Stocks to invest in 2022 which tripled money every 3 years and generated over 11,000% returns in the last 6 years.
Also Read: Best Multibagger Stocks to invest in 2022 (Doubling every 4 years)
What are Smallcap Multibagger Stocks?
Like I indicated in earlier articles, Smallcap multibagger stocks are the fancy word used in the stock market, which indicates that investment in such Smallcap stocks would multiply several times in short to long term and provide superior / high returns.
You might argue that in the last 2 years due to bull run, all stocks have shown high returns.
However, this analysis is for the period 5-Feb-2016 to 4-Feb-2019 (3 years) and 5-Feb-2019 to 4-Feb-2022 (3 years). Means if it passes both these cycles and returns are tripled in both periods (e.g. 1 Lac turning to 3 lacs or generating over 200% returns), these are considered in this Smallcap multibagger analysis.
Best Smallcap Multibagger Stocks to invest in 2022
Here is the list of Smallcap Multibagger Stocks to invest in 2022. These have tripled in every 3 years i.e. During 2016-2019 and 2019 to 2022.
#1 – Sportking India – 1,000% returns in 3 years – 11,390% returns in last 6 years.
#2 – Shivalik Bimetal – 380% returns in 3 years – 4,690% returns in last 6 years.
#3 – Mastek Limited – 566% returns in 3 years – 2,040% returns in last 6 years.
#4 – Seamec Limited – 245% returns in 3 years – 1,040% returns in last 6 years.
#5 – Nelco Limited – 250% returns in 3 years – 1,002% returns in last 6 years.
Smallcap Multibagger Stocks to invest in 2022 – Detailed Analysis
Let us get into more specifics about these Smallcap Multibagger Stocks.
#1 – Sportking India – CMP Rs 1,494
Sportking India Limited, a part of the Sportking Group, is a textile manufacturing company engaged in the production of Yarns (Cotton Yarn, Synthetic Yarn, Blended Yarn), fabrics and garments.
Snapshot of Financial Performance
- Its standalone revenues increased from Rs 1,015 Crores in FY2017 to Rs 1,306 Crores in FY2021.
- Its margins improved significantly from Rs 21 crores in FY2017 to Rs 84 crores in FY2021.
- Its latest quarter results indicate revenues increased from Rs 351 Crores (Qtr ending Dec-20) to Rs 587 Crores (Qtr ending Dec-21). Its profits increased from Rs 30 crores to Rs 116 crores for a similar period.
Positive factors in this stock
- Strong revenue growth in the last 5 years.
- Strong margin growth in the last 5 years.
- Strong annual EPS growth.
- Book value per share increasing in the last 2 years.
- Company with zero promoters pledge.
- We could see strong momentum in share price for short, medium and long term averages.
Negative or risk factors in this stock
- Declining net cash flows.
- Company is not paying dividends in spite of reporting profits.
Share Price Performance
- Last 1 year – 650%
- Last 3 years – 1,030%
- Last 6 years – 11,390% (1 Lac turned 1.149 Crores)
- 2016-2019 (3 years) – 1,030% (1 Lac turned 11.3 Lacs)
- 2019-2022 (3 years) – 1,000% (1 Lac turned 11 Lacs)
- This stock is showing technically very bullish except for recent market correction time.
Considering good financials and upward technical indicators, it can be considered as one of the Best Smallcap Multibagger Stocks to invest in 2022.
Also Read: 5 Multibagger Mutual Funds – Upto 1000% returns in 10 years
#2 – Shivalik Bimetal Controls – CMP Rs 479
Shivalik Bimetal Controls Limited is specialized in the joining of material through various methods such as Diffusion Bonding / Cladding, Electron Beam Welding, Solder Reflow and Resistance Welding.
Its present program includes Thermostatic Bimetal, Clad Metal, Spring Rolled stainless Steels, Electron Beam Welded Material with multi- Gauge and Multi- Materials strips and Thermostatic Edge- Welded Strips for a board spectrum of industries.
Snapshot of Financial Performance
- Its consolidated revenues increased from Rs 118 Crores in FY2017 to Rs 203 Crores in FY2021.
- Its margins improved significantly from Rs 8 crores in FY2017 to Rs 23 crores in FY2021.
- Its latest quarter results indicate revenues increased from Rs 59 Crores (Qtr ending Dec-20) to Rs 88 Crores (Qtr ending Dec-21). Its profits increased from Rs 8 crores to Rs 14 crores for a similar period.
Positive factors in this stock
- Strong revenue growth in the last 5 years.
- Strong margin growth in the last 5 years.
- Its recent quarterly results show significant growth in the financials.
- Strong annual EPS growth.
- Company with low debt.
- Book value per share increasing in the last 2 years.
- Company with zero promoters pledge.
- FPI/FII increasing their share holding.
- We could see strong momentum in share price for short, medium and long term averages.
Negative or risk factors in this stock
- Its non core income is Increasing.
Share Price Performance
- Last 1 year – 650%
- Last 3 years – 380%
- Last 6 years – 4,690% (1 lac turned 47.9 lacs)
- 2016-2019 (3 years) – 900% (1 Lac turned 10 Lacs)
- 2019-2022 (3 years) – 380% (1 Lac turned 4.8 Lacs)
- This stock is showing technically very bullish except for recent market correction time.
Considering good financials and upward technical indicators, it can be considered as one of the Top Smallcap Multibagger Stocks to invest in 2022 in India.
#3 – Mastek – CMP Rs 2,744
Mastek Limited is a provider of vertically-focused enterprise technology solutions. Having its presence in IT industry for almost 4 decades, Mastek has evolved from an IT solutions provider to Digital transformation partner.
Snapshot of Financial Performance
- Its consolidated revenues increased from Rs 560 Crores in FY2017 to Rs 1,721 Crores in FY2021.
- Its margins improved significantly from Rs 32 crores in FY2017 to Rs 251 crores in FY2021.
- Its latest quarter results indicate revenues increased from Rs 442 Crores (Qtr ending Dec-20) to Rs 551 Crores (Qtr ending Dec-21). Its profits increased from Rs 70 crores to Rs 83 crores for a similar period.
Positive factors in this stock
- Strong revenue growth in the last 5 years.
- Strong margin growth in the last 5 years.
- Strong annual EPS growth.
- Rising net cash flow and cash flow from operating activity.
- Company with low debt.
- Book value per share increasing in the last 2 years.
- Company with zero promoters pledge.
- FPI/FII increasing their share holding.
- High analyst ratings in the last 3 to 6 months.
- We could see strong momentum in share price for short, medium and long term averages.
Negative or risk factors in this stock
- Promoters decreasing their share holding
- MFs have reduced share holding in the last quarter.
Share Price Performance
- Last 1 year – 130%
- Last 3 years – 566%
- Last 6 years – 2,040% (1 lac turned 21.4 lacs)
- 2016-2019 (3 years) – 220% (1 Lac turned 3.2 Lacs)
- 2019-2022 (3 years) – 566% (1 Lac turned 6.6 Lacs)
- This stock is showing technically very bullish except for recent market correction time.
Considering good financials and upward technical indicators, it can be considered as one of the Best Smallcap Multibagger Stocks for 2022 to invest.
#4 – Seamec – CMP Rs 1,039
Seamec Limited owns and operates 4 multi-support vessels for the provision of diving services, manned and unmanned subsea operations and related activities. It has also diversified into main fleet shipping vertical by acquiring 3 bulk carriers of various sizes. It owns the largest fleet of multi-functional vessels in India.
Snapshot of Financial Performance
- Its consolidated revenues increased from Rs 207 Crores in FY2017 to Rs 256 Crores in FY2021.
- Its incurred loss of Rs 148 crores in FY2017, however generated a profit of Rs 98 crores in FY2021.
- Its latest quarter results indicate revenues increased from Rs 58 Crores (Qtr ending Sep-20) to Rs 81 Crores (Qtr ending Sep-21). Its profits increased from Rs 15 crores to Rs 25 crores for a similar period.
Positive factors in this stock
- Strong revenue growth in the last 5 years.
- Strong margin growth in the last 5 years.
- Company with low debt.
- Book value per share increasing in the last 2 years.
- Company with zero promoters pledge.
- FPI/FII increasing their share holding.
- We could see strong momentum in share price for short, medium and long term averages.
Negative or risk factors in this stock
- Company not able to generate adequate net cash.
Share Price Performance
- Last 1 year – 112%
- Last 3 years – 245%
- Last 6 years – 1,040% (1 lac turned 11.4 lacs)
- 2016-2019 (3 years) – 230% (1 Lac turned 3.3 Lacs)
- 2019-2022 (3 years) – 245% (1 Lac turned 3.5 Lacs)
- This stock is showing technically very bullish except for recent market correction time.
Considering good financials and upward technical indicators, it can be considered as one of the Best Smallcap Multibagger Stocks to invest in India in 2022.
You may like: Midcap Multibagger Stocks – Tripled every 3 years (Last 6 years)
#5 – Nelco – CMP Rs 802
Nelco Limited is engaged in the Business of Network Systems and Automation & Control.
Snapshot of Financial Performance
- Its consolidated revenues increased from Rs 143 Crores in FY2017 to Rs 226 Crores in FY2021.
- Its profits increased from Rs 5 Crores in FY2017 to Rs 12 Crores in FY2021.
- Its latest quarter results indicate revenues increased from Rs 58 Crores (Qtr ending Dec-20) to Rs 72 Crores (Qtr ending Dec-21). Its profits increased from Rs 3 crores to Rs 5 crores for a similar period.
Positive factors in this stock
- Strong revenue growth in the last 5 years.
- Strong margin growth in the last 5 years.
- Rising net cash flows and cash from operating activity.
- Book value per share increasing in the last 2 years.
- Company with zero promoters pledge.
- We could see strong momentum in share price for short, medium and long term averages.
Negative or risk factors in this stock
- ROE declining in the last 2 years.
- ROA declining in the last 2 years.
Share Price Performance
- Last 1 year – 270%
- Last 3 years – 250%
- Last 6 years – 1,002% (1 lac turned 11 lacs)
- 2016-2019 (3 years) – 210% (1 Lac turned 3.1 Lacs)
- 2019-2022 (3 years) – 250% (1 Lac turned 3.5 Lacs)
- This stock is showing technically very bullish except for recent market correction time.
Considering good financials and upward technical indicators, it can be considered as one of the Best Multibagger Stocks among Smallcap segment to invest in 2022.
Disclaimer: I do not hold any of the above stocks as on the day of writing the article. However, I may purchase them in coming days. I generally do this analysis for my personal investments and also post on this blog which might be useful for others too. Investment in direct stocks is a high risk. Investors should consult their financial advisor before investing in any of these stocks.
Have you liked our tips and analysis? Then share it on your Facebook, Twitter, Telegram and other social media, which might be useful to your friends too.
Good investment idea. Thanks Suresh.
Good article