Top 5 Multibagger Microcap Stocks of 2023 So Far. Take a Look…

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market capitalisationwhich is lower than small, mid, and large-cap stocks. Investing in microcap stockscan be a daunting task for beginners because of their lack of popularity and the low liquidity. However, they offer a huge opportunity for investors with some patience and risk tolerance.

Many microcaps are still in the early stages of development, which means that there is plenty of room to grow. In today's article, we look at five microcap stocks that haverallied the most in 2023 so far. These companies are part of Nifty Microcap 250 index, which distinguishes smallcaps and microcaps.

First on the list of multibagger microcap stocks of 2023 is Jindal Saw. The flagship company of PR Jindal group, Jindal Saw is a leading global manufacturer and supplier of Iron & Steel pipes and pellets. Shares of the company have been on a roll in 2023, rallying over 200% within 6 months.

What factors contributed to the rally? You could say it’s a combination of factors that came together and drove the growth for Jindal Saw. The first one is quite obvious and you probably figured it out already – strong earnings. Jindal Saw reported strong numbers for the March 2023 quarter with net profit more-than-doubling to ₹2.9 billion (bn) on the back of healthy operational performance.

Its EBITDA surged 50% while margins improved 148 bps to 11.6%. If you look at the company’s financials for the past couple of years, you’ll see that Jindal Saw has been consistent in reporting out of the box numbers. This has been supported by increased sales volume and improved capacity utilizations plus higher realisations.