List of Best Tata Group Small Cap Stocks

Investing in smallcap stocks requires greater rewards and a willingness to take on greater risk if you are one of the investors constantly searching for a dependable smallcap company to invest in. You should be pleased to learn that the Tata Group, one of India’s biggest commercial conglomerates, owns several smallcap enterprises. 

In this blog, we will give you an overview of the Best Tata Group Small-cap stocks.

What is Tata Group Small Cap Stock?

A listed company’s market capitalization is determined by multiplying its free float market shares by its share prices. Based on this, corporations are divided into three groups: large-cap, mid-cap, and smallcap. smallcap firms generally have lower market capitalization than their bigger counterparts. 

Companies affiliated with the Tata Group that have a lower market capitalization than their flagship companies are referred to as Tata Group smallcap stocks. Any investor considering investing in these stocks needs to be aware of the considerable market volatility associated with these smallcap firms. 

Best Tata Small Stock List

The list of best Tata Group smallcap stocks are:

Market Information  

Company	Current Market Price (₹)	Market Capitalisation (in ₹ crore)	52-Week High (₹)	52-Week Low (₹)
Rallis India Ltd.	359	6,987	386	196
Tata Teleservices (Maharashtra) Ltd.	57.5	11,233	94.2	50.0
NELCO Ltd.	812	1,853	1,503	707
TRF Ltd.	316	348	560	285

Read Also: List of Top 10 Blue Chip Stocks in India with Price

Overview of Tata Group Small Cap Stocks

An overview of the Tata Group Smallcap stocks is given below:

1. Rallis India Ltd.

The company was established in 1948 to supply solutions for the chemical and agricultural industries. Rallis India became a part of the Tata Group after a company called Tata Chemical purchased the majority of the firm in 1964. The company expanded its product line the same year to include contract manufacturing, specialty chemicals, and seeds. With a robust R&D department to provide innovative and eco-friendly agricultural chemical solutions, the company currently exports its goods to over 70 countries. The company’s headquarters is in Mumbai. 

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
7.13%	57.18%	18.02%

2. Tata Teleservices (Maharashtra) Ltd.

Tata Teleservices (Maharashtra) Limited, commonly referred to as TTML, is primarily focused on offering fixed-line wireless telecommunication services. Hughes Ispat Limited was the original name of the company when it was founded in 1995. Later that year, the Tata Group acquired the majority of the company’s shares, changing the name to Tata Teleservices (Maharashtra) Limited. In 2008, the company launched its Tata Photon mobile broadband services, and in 2015, it started focusing on small and large companies. In 2017, the group was forced to cease operations due to fierce competition. Stock prices increase with the introduction of cloud-based digital communication services. The company’s headquarters are located in Mumbai. 

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-37.47%	-55.43%	1.530.00%

3. NELCO Ltd.

When the company was first founded in 1940, its primary concentration was on the manufacturing of electronic equipment. NELCO stands for National Radio and Electronic Company. Later, the business changed its focus to advanced communication technologies and began producing technology-driven solutions. In 1980, it joined the Tata Group. The business began offering satellite communication services in the early 2000s after realizing the need for dependable and distant communication solutions. The company’s supremacy in the satellite communication industry was reinforced in 2019 when it began offering internet services on Indian commercial flights. They also offer services for the energy, logistics, and maritime industries. The company’s headquarters is in Mumbai. 

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-33.90%	-19.70%	308.32%

4. TRF Ltd.

The company was founded in 1962 under the name Tata Robins Fraser Ltd. It was a joint venture between Tata Steel and Associated Cements Company (ACC) Ltd. After rebranding as TRF Limited later in 1994, the business gained experience in advanced material handling systems that benefited India’s mining, steel, and electricity sectors. To serve its logistics industry, the company has undertaken projects for both local and foreign customers and operates ports and yards. Located in Jamshedpur, the company’s manufacturing facility is outfitted with cutting-edge machinery. To create and modify solutions, it also has a specialized research and development division. The company’s headquarters is in Jamshedpur. 

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-40.31%	91.27%	287.24%

Read Also: Best Tata Group Penny Stocks in India

Key Performance Indicators (KPIs)

Company	Operating Profit Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Current Ratio
Rallis India Ltd.	8.02	5.58	8.08	10.71	1.75
Tata Teleservices (Maharashtra) Ltd.	32.99	-103.08	0	-6.31	0.04
NELCO Ltd.	12.36	7.24	19.15	27.77	1.09
TRF Ltd.	39.67	24.72	-9.02	35.72	1.74

Benefits of Investing in Tata Group Small Cap Stock

The major benefits of investing in Tata Group Small Cap Stocks are as follows-

• High Returns – Small cap companies of Tata Group have more room to grow, which could eventually result in significant returns for investors. 
• Portfolio Diversification – By purchasing smallcap stocks of the Tata Group, one can effortlessly diversify their holdings. 
• Brand Value – Investors prefer Tata Group companies because of their solid corporate governance practices, solid reputation, honesty and excellence.
• Long-Term Growth – Because the Tata Group enterprises operate in a variety of industries, they have a high potential for long-term growth. 
• Regular Income – Numerous minor businesses in the Tata Group provide investors with reliable dividends and can be regarded as a reliable source of income.  

Factors to be Considered Before Investing in Tata Group’s Smallcap Stocks

The factors to be considered before investing in Tata Group’s penny stocks are:

• Volatility: In comparison to other large-cap and mid-cap companies, the majority of smallcap stocks can be extremely volatile, due to which an investor can face major losses in a short amount of time.
  
• Liquidity: It may be challenging for buyers and sellers to trade them swiftly and in significant quantities due to our low trading volumes.
  
• Business risk: One must take the company’s business risk into account before investing in any smallcap company. 

Future of Tata Group Small Cap Stocks

One of the biggest business conglomerates in the world, as well as in India, is the Tata Group. The organization boasts a broad range of products and capable leadership. The Tata Group’s businesses are dedicated to sustainability and innovation. Since people all around the world are switching from traditional to renewable energy sources, the company is growing into new industries, including electric vehicles and renewable energy, which could lead to long-term growth.

The Tata Group is also regarded as a leader in several other industries, including the IT sector, where its IT division, TCS or Tata Consultancy Services, is a global leader; the metal and energy sector, where companies like Tata Steel hold a prominent position only in India worldwide; and the automotive sector, which includes Tata Motors and Jaguar and Land Rover. As a result of the company’s digital transformation and emphasis on artificial intelligence and cutting-edge technology, we can say that the Tata Group has a bright future. 

Read Also: Best Tata Group Penny Stocks in India

Conclusion

In conclusion, investing in smallcap stocks of the Tata Group gives you the chance to make money over time. However, smallcap stocks come with several hazards, including a lack of liquidity and incomplete information. Only you should think about investing in such smallcap stocks if you are willing to take these risks. However, because the Tata Group backs them, its smallcap stocks are more dependable than those of other smallcap stocks. Additionally, you must speak with your investment advisor before making any decisions on investments. 

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