Business

A list of 20 fast-growing small-cap stocks, and what makes them multibaggers

ET Prime looked at stocks in the Nifty Smallcap 250 index whose revenues had grown at a fast clip in the last four years. Most companies are either in the infrastructure, engineering, and chemicals sectors or in the business of pipes. There is none from consumer-facing businesses or from the banking-finance industry with the sole exception of Cholamandalam Finance Holdings.

In the last few years, small- and mid-cap stocks are growing faster than their large-cap peers. For instance, while the Nifty Smallcap 250 shot up 51% in the last one year, the benchmark Nifty 50 rose 26%. But which are the companies in this space that are growing at a fast pace? Over the last four years, Apar Industries has emerged as the biggest small-cap stock with a market capitalisation of INR40,695 crore.

In the last three years, the stock.