How to Find Strong Micro Cap Stocks for Multibagger Returns? | Microcap Investing for Long Term

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Microcaps consist of companies ranked beyond the top 500 in terms of market capitalization (so less than 6,400 crores) and although they seem really small, they often include industry leaders & some of the fastest growing companies in India. Investing in microcaps can be a potential goldmine for those with a keen eye and many of the world's famous investors have made their fortunes by identifying promising micro cap stocks in their early stages
👉 Watch Fisdom's Nirav Karkera discuss the Nifty Microcap 250 Index Fund with Pratik Oswal of Motilal Oswal Mutual Fund
• How to invest in Micro...
👉 Video Chapters:
00:00 What is a Microcap?
01:25 Traits of a Microcap
05:43 How to Invest in Microcaps?
08:03 Finding Strong Microcap Stocks
12:39 Best Practices when Investing in Microcaps
👉 Useful Reading Resources:
‣ 10 Reasons for Investing in Micro Caps: www.perrittcap.com/wp-content...
‣ Vishal Khandelwal's Interview with Ian Cassel: www.safalniveshak.com/ian-cas...
‣ Professor Sanjay Bakshi's article on India's Intelligent, Fanatic Iconoclasts: www.dropbox.com/s/pb60w77txg3...
‣ Why Should One Avoid Investing in Nifty Microcap 250 Index? (by Economic Times): economictimes.indiatimes.com/...
‣ QI Value Investment Strategy: www.quant-investing.com/strat...
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#microcapstocks #microcap #niftymicrocap250
Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links

[@subodhadavadkar7158]

I started an SIP in Motilal Oswal Microcap MF immediately after watching this video for the first time and sitting at 18% gain after 7 SIP's. The 1st SIP's current value is up by almost 40%

[@titussundersingh4536]

I was so reluctant to SIP in that MF because lack of data 😅

[@leninbabu8310]

Another interesting one from shankar sir, Thank you so much.

[@ashwinisudan6462]

Any amount of appreciation for your video,the matter,the guidance,style of presentation including tone tenor and diction,well timed synchronised visual elements would be an understatement. Kudos,for the effort and the guidance. You have a got a disciple for next 20 odd years since I am already 61 and yet a new entrant in the field. Bravo.Keep up the good work.Look forward to your follow up videos in next three days and there on. I hope I am able to put your guidance in practice.Thanks.Regards- Colonel Ashwini Sudan (Retired )

[@shankarnath]

Thank you very much for your kind words, Col. Ashwini Sudan .. much appreciated! There was another Colonel many years back who started a food brand with some spices, chicken & a pressure cooker. And because he did that at 66 .. the odds are very much in your favour :) .. Wishing you the very best !

[@user-ms7sk6xp4y]

Marvellous! Great work.

[@shankarnath]

Thank you! Cheers!

[@focus15624]

Thankyou for this video.

[@shankarnath]

My pleasure!

[@Anbu-Ini]

Thanks Shankar Sir, for the unique episode with lots of data and amazing presentation..

[@shankarnath]

So nice of you. Thank you very much for your kind appreciation

[@lakshminarasimhanpb506]

Fantastic introduction into this world. Thanks Shankar sir ❤

[@shankarnath]

Most welcome. Glad you found it useful

[@kkgupta6114]

Excellent video I must say . Clear concept. Well done and keep up

[@shankarnath]

Thank you very much for the kind appreciation

[@afrozquadri4305]

Excellent topic 👍👍 Thank you sir

[@shankarnath]

Most welcome. Thanks for liking it and glad you found it useful 🙌

[@vineetjainn3646]

Very nice topic covered. Thank you for covering this on your channel! You are adding lot of value to the investing community 👍

[@shankarnath]

Much appreciated, Vineet ji! Glad it was helpful and you found it informative

[@thedarkknightwillrise23]

I always patiently wait for your videos ! They're so insightful 👌🏻

[@shankarnath]

Glad you like them! Thank you very much

[@user-gk9of4bj4q]

This video has opened a new dimension for investing. Till date there were only 3 baskets which the whole world follows - LargeCap, MidCap and SmallCap. I am sure the next upcoming videos will have a small discussion on how much MicroCap one should have in the portfolio. 40% of MicroCap sounds a big chunck considering the risk it has. Thanks again for your research and sharing the knowledge.....❤

[@shankarnath]

Most welcome and I'm glad you found it informative.

[@balajiragupathy416]

Thanks Shankar Ji, Great explanation ! Also it will be excellent if we have multiple factors in microcap with Quality/Value/Momentum/Alpha etc which will be more productive in realizing returns.

[@shankarnath]

Most welcome, glad you found it informative 🙌

[@mayanktiwari2498]

Thank you again Shankar for bringing this out!! You should start a weekly newsletter also!! 🤝🙂

[@shankarnath]

Most welcome Mayank ji .. and thanks for the idea; I'll certainly try if I find time for it

[@nr9092]

Great video Shankar. This is the topic, now we are ready for. Please bring on more videos.

[@shankarnath]

Thank you!

[@mohammadfiroz5085]

Thank you Mr.Sankar for sharing very valuable information..

[@shankarnath]

You're most welcome, Firoz ji. Glad you liked it!

[@mohamedrafishamsudeen2671]

Great work Shankar.. 🎉Waiting for the follow up videos 😇✌️

[@shankarnath]

Thank you!

[@yogeshdixit3973]

Very helpful on a lesser known asset sub-class Looking forward to more on this topic Thanks Shankar ji 😊🤟

[@shankarnath]

Most welcome, glad you found it useful

[@kmurari68]

Each and every video excellent in quality, wow !

[@shankarnath]

Thank you very much. I'm glad you are liking my work

[@varunkotwal2427]

Fantastic content as usual. Wanted some guidance on microcaps & your video came. Thanks again.

[@shankarnath]

Glad it was helpful!

[@manishssawant]

Thoroughly explain a great video.....

[@shankarnath]

Thanks, glad you liked it

[@abhijeetpande5994]

Excellent video Shankar, the metrics you mentioned are very wise for picking micro caps.

[@shankarnath]

Glad you found them useful, Abhijeet ji. The idea is to use these as a starting point and build upon it

[@seanwu3238]

Great work

[@jayaprakash456abc]

thanks Sir, very informative...

[@shankarnath]

Most welcome! Glad you liked it

[@paragvaishampayan9501]

Really really appreciable content 🙏

[@shankarnath]

Thank you very much!

[@Razrman]

Such a content rich video. Hats off to Shankar for putting so much work and efforts into every one of his video

[@shankarnath]

Thank you very much 🙌

[@jayakumarm.k1560]

Excellent video. I was searching for such a comprehensive video on microcap investment. Thank you

[@shankarnath]

Most welcome. Glad it was helpful!

[@Kirmbadi1934]

Amazing comprehensive useful video. Thanks

[@shankarnath]

Glad it was helpful!

[@PiyushSharma-mo9qo]

very good quality content shankar ji

[@shankarnath]

Thank you very much Piyush ji

[@natureloverRP204]

Thanks Dear SN. It was very informative and worth watching for an investor❤

[@shankarnath]

My pleasure! Glad it was helpful 🙌

[@commanderbharatkumarunerca7293]

Another great video. Appreciate your sharing.

[@shankarnath]

Most welcome, glad you found it useful!

[@niansh]

Great learning video!

[@shankarnath]

Thank you 🤗

[@parthaaec07]

I like your past performance analysis as it gives indication of long term performance of an index or class. Also how to DIY using screeners. Really excellent 👏

[@shankarnath]

Thank you very much. Glad you found them useful. Yes, at some stage we have to go beyond past performance & screener but it does help us funnel down to a list of probables.

[@arvindgandhi1007]

Thank you very much 🙏

[@shankarnath]

Most welcome Arvind ji

[@vanamhari9264]

Thanks sir, very informative .... please share more videos

[@shankarnath]

Most welcome! 🙌

[@AtamjeetSingh1]

Very very very informative 👏

[@shankarnath]

Glad you liked it. Thank you!

[@ashupop1]

Thanks your content is as usual mind blowing

[@shankarnath]

I appreciate that! Thank you very much for the warm words

[@deivas1425]

Shankar Ji... Awesome analysis.. waiting for your monthly, weekly news letters also 🙂. We are looking moree follow-up on the micro cap stocks investing too in upcoming weeks.👌👍

[@shankarnath]

Thank you very much! 🙌

[@bimalupadhyaya9875]

As usual excellent...

[@shankarnath]

Thank you!

[@dvsagar]

Excellent information.

[@shankarnath]

Glad it was helpful!

[@saifk1425]

Great investment information on micro-caps. Thanks again.

[@shankarnath]

Glad it was helpful! Thanks for the appreciation

[@reyansharma8363]

Very useful thanks sir

[@shankarnath]

Most welcome

[@neerajjain6064]

Great video and very insightful

[@shankarnath]

Glad you enjoyed it!

[@avinashkhopade4708]

Very informative and helpful content. Thank you.

[@shankarnath]

You're very welcome!

[@shreyaspimple5729]

I have picked up this type of investing recently and would love to see your upcoming videos, you are doing some fantabulous work. More power to you ❤️

[@shankarnath]

Awesome, thank you for your kind appreciation! Wishing you the best

[@DK.487]

Shankar bro is hdfc nifty smallcap 250 etf a good option to consider...

[@shashiDodderi]

waiting for this- super

[@shankarnath]

Thanks!

[@piyushranjan1176]

Shankar ji, aap apne naam ke anurup hi god level videos banaate hain. Very informative so thank you for the immense efforts.

[@shankarnath]

🙌 bahut bahut dhanyawad apka, appreciate the kind words!

[@globalresearcher2745]

Excellent presentation ❤

[@shankarnath]

Thanks a lot 😊

[@dr.diwakarsahu2454]

Great analysis 👍

[@shankarnath]

Thank you! 🙌

[@sandeshnikharge7581]

Nice and crisp explaination...!

[@shankarnath]

Thank you 🙂

[@Irfan1937K]

@shankar Most under rated youtube channel. Glad i m following

[@shankarnath]

Thank you for the vote of confidence

[@jafferamigos]

Good work, keep it up. You remind me of Rajeev Masand in a good way

[@shankarnath]

Thank you 🙌

[@lawrencenga1856]

Very well communicated ideas. Great job!

[@shankarnath]

Glad you liked it!

[@deepeshkumar100]

Nice one Shankar

[@shankarnath]

Thank you!

[@vickygahlyan]

So much of value in so less a time. Amazing content supported by shooding expression

[@shankarnath]

Thank you

[@tirupatibestplots]

Ur fan from tirupati ❤❤❤

[@qazqaz299]

Excellent content.

[@shankarnath]

Much appreciated!

[@SARARAJA17]

Excellent one witt enormous amount of info while others talking about regular caps.

[@shankarnath]

Thanks! Glad you liked it

[@SasiGudla]

Brilliant as usual

[@shankarnath]

Thank you!

[@sumitmehta3657]

SUPERB SIR EXCELLENT 👌

[@shankarnath]

Thanks! Glad you liked it

[@naveenkumartuppada555]

Super sir very much informative..well presented about fundamentals...

[@shankarnath]

So nice of you. Thank you very much for the appreciation

[@khznm2174]

Very good info and a thoughtful

[@shankarnath]

Glad it was helpful!

[@shashidharprabhakar9796]

Best YT channel to learn about investment and trading ! All the best, Sir ! Learning a lot from all your videos !!!!!

[@shankarnath]

Thank you very much for your kind wishes 🙌

[@bholesmirnov6972]

Very informative! which screener you use for filtering stocks?

[@shankarnath]

Thank! I use screener.in

[@user-wd2ku9cz5d]

WELL RESEARCHED AND AUTHORATIVE CONVICTION FOR THE INVESTORS.

[@shankarnath]

Thanks. Glad you liked it

[@manojpatil6574]

Wonderful videos. Follow-up video are needed

[@shankarnath]

Thank you!

[@AB00730]

Very nice

[@shaikalisha5015]

This strategic is similar to Peter lynch,any way thanks sharing

[@TheCheckit96]

Great video. Any sort of information on what p.e. should one pay . Nice company in your list in niche specialized area with long runway.. How to discuss if it presents value.

[@ManpreetSingh-zg3um]

Very informative!

[@shankarnath]

Glad you liked it

[@akhaleefa]

I am sharing your videos among my friend circle passionately. I am requesting them to share it with their contacts. Indians should be best in all walks of life and we all have to think how to cooperate and help each other with our knowledge and skills. 1.43 billion people is made a great strength for India and the world's benefits. Vaudhaiva Kutumbakam meaning world is a family is bound to succeed as this is the best idea this world needs sooner.

[@shankarnath]

Thank you very much, Abdul ji for your kind appreciation and for sharing my work with others. I'm reminded on a sanskrit phrase myself i.e. svasmai svalpaṃ samajaya sarvasvaṃ .. that means, 'a little bit for yourself and everything for others'

[@akashtripathi__]

Sir do you have a team for video editing or do it by yourself, love the way you convey so much info in a video

[@shankarnath]

Yes, the team at ONO Creators does it for me (www.onocreators.com)

[@kr48jewel]

How patient full you are,replying to most of the comments,it’s a great lesson for me like people to be down to earth,at an age of 64

[@shankarnath]

Thank you 🙌

[@athulp6520]

Very useful

[@shankarnath]

Thanks a lot

[@debabratasarkar7477]

Very nice video sir

[@shankarnath]

Thank you

[@abhijitsomalwar946]

Excellent content and very well explained, thanks a lot Sir. One query- can we use Microcap250 stocks as given by NSE and run our technical scanners (such as RSI based, macd based etc) instead of selecting the way you explained? As per my understanding, NSE must have used equivalent level logic for coming up with this list of 250 stocks.

[@shankarnath]

Thank you! You can check the methodology here: www.niftyindices.com/resources/index-methodology

[@gourabchakraborty6061]

Video editing is out of the world

[@shankarnath]

Thank you! Glad you liked it

[@gourabchakraborty6061]

@@shankarnath micro shankar wala line toh aur bhi gajab tha....your scripting is also equally good 😊

[@debasheesh]

Already Invested in Indo borax and west coast paper Sitting at around 30% returns on both

[@PriyankJainpj]

Hi Shankar, Big fan of your work, love to watch your videos and learn. I wanted to a clarification. Suppose me as a investor who wants to start investing in microcaps from Sept 2023 I would apply the screening filter and will get the stocks which have performed in the last five year i.e 2019-2023 and have super CAGR of 36% in the same time period.Correct me if i am wrong , When filtering are you considering the performance of these companies from 2014-2019 and than getting a backtest CAGR of 36%?. and if not how would one should use this strategy in real life. Thanks.

[@shankarnath]

Hello. In this case, I have not done a forward-testing (unlike the video on monopolies where I assumed I was sitting in 2018 but that data compilation took me many hours) and this is back-testing. If keen, please try the same using 2019 data .. I'm certain you'll find even better insights. And appreciate if you can share the results with me aswell, maybe this can be converted into a follow-up video.

[@PriyankJainpj]

@@shankarnath Sure will try to dig a little deeper for better insights. If i have some data to share let me know your email id. Thanks

[@aniketgupta4407]

this deserves more views ..thanks Shankar 👌

[@shankarnath]

Glad you liked it

[@kamalchakraborti1353]

avg up is the most imp thing...even if you find few gems you're most likely to start with a small amount & if you dont add further juice you wont make it a big

[@madhurireddy1246]

Hello Sir, Great content can you kindly make video related to SME stock how one can identify and what to consider as drawbacks as these can be Multibagger or other way if not chosen right can you highlight on these Stock as well

[@shankarnath]

Thanks for the suggestion. I have a video on SME stocks, pls have a look: kzbin.info/www/bejne/hqXXc2CFfbCCn9E

[@TheCheckit96]

In fact I used screener and I bought 1 or 2 based on my own judgement.

[@prudhivraj703]

You are a strong microcap youtube channel, I will invest my time on your videos

[@shankarnath]

Thank you very much for your vote of confidence

[@rajatm6815]

borosil renewable microcap hai? 5k cr market cap

[@akshitagarwal8617]

SN your videos are insightful, detailed & DIY. Please keep creating such videos. Have been following you since my Times Internet days as I was a big admirer of your content during the ET Money stint. Few feedbacks: - Suggest best smallcase/MFs so folks watching videos can invest w/ caution [TG -- no DIY but risk takers, bcz after watching video I got a couple of choices but difficult to implement it] - Create smallcases around your investments [max 3 - Micro, etc.] / [TG -- follow your investing pattern + anchor & authority bias will play a huge role for adoption] Can you please suggest if a risk taker for the long term should invest (5-10% corpus) in Microcap MF or any specific smallcase (out of all you listed) based on your analysis?

[@shankarnath]

Thank you for the appreciation and for the suggestions

[@akshitagarwal8617]

Thanks! Wanted to check if you'd recommend investing in micro cap mutual fund or any specific small case (out of all you highlighted)

[@shankarnath]

@@akshitagarwal8617 I haven't explored either but should mention that I invest directly in microcap stocks

[@akshitagarwal8617]

​@@shankarnath Gotcha, I hope you launch your own micro-cap smallcase soon. Thanks once again!

[@najmulalam008]

Sir could you please tell me whether the business of DP WIRE is cyclical or not ?

[@shankarnath]

Apologies, I haven't analysed that company

[@gundahearsyou08]

What's that another forum that you told apart from value picker? Its not clear in the video. Pls provide this forum.

[@shankarnath]

reddit.com

[@sandysmile2]

Please make a detail video on eki energy.

[@shankarnath]

Thanks for the suggestion

[@ramsinghsingh6860]

❤great

[@user-it4sj6bg9v]

Sir, can you help us with micro cap 250 index fund research

[@shankarnath]

Most welcome, glad you found it informative

[@rajeebdas8736]

Sir please upload more videos on microcap stocks.

[@shankarnath]

Thanks for the suggestion

[@user-jy5zl8my5w]

Sir I’m a moment investor please guide why max healthcare is falling

[@tirupatibestplots]

Hi sir Rolling return where to check sir plz suggest the gud website

[@shankarnath]

Pls use www.advisorkhoj.com for rolling returns analysis

[@sachintom1111]

@shankarnath Could you help us with any good sub-reddit for Indian stock market? Thanks in advance

[@shankarnath]

Sorry, I have no idea as I'm not an ardent follower of any. Will circle back if I find anything good

[@adityaseth287]

Dear Sir kindly also share your screener link or query

[@shankarnath]

Hi, the query is given in 10:19. Kindly use that

[@agape8812]

Can you brief on the importance of investing in S and p 500, nasdaq etc, given the fraility of Indian economy compared to US

[@shankarnath]

It's good to have some international exposure in one's portfolio.

[@AkashVermaLMP]

Thanku for considering my request 😊

[@shankarnath]

Very welcome

[@sumitjoshi1690]

Microcap mutual fund also introduced by motilal oswal

[@luckyvishal92]

That one is index fund

[@Allix-qg5je]

Very good fund, 20% in 2 months