These 3 fast-growing small caps are still cheap for now

Small caps that offer big growth at reasonable prices? That’s a rare trifecta, but not necessarily difficult to find. Using Value Research’s Stock Ratings, we spotted three small caps, scoring 8 or above on our Growth Score and 7 or above on our Valuation Score, denoting solid fundamentals and growth metrics, all while trading at enticing valuations.

If you're hunting for companies with a solid growth track record and sensible price tags, this trio deserves to be on your watchlist.

3) Southern Petrochemical Industries

Southern Petrochemical (SPIC) is a key urea manufacturer in South India, supplying urea and other organic fertilisers across Tamil Nadu, Puducherry, Kerala, Karnataka, Andhra Pradesh, Telangana and Maharashtra. Operating a 6.2 lakh metric tonne capacity plant in Tuticorin, SPIC focuses solely on domestic markets, with fertiliser sales (primarily urea) making up over 90 per cent of its revenue. While its production dipped in FY24 as operations were disrupted by floods, the company remains a critical player in India’s agri-input ecosystem, anchored by scale, regional dominance and a singular focus on urea fertilisers.

2) Can Fin Homes

Can Fin Homes, backed by Canara Bank with a nearly 30 per cent stake, is a focused housing finance player serving India’s lower- and middle-income borrowers. With a Rs 38,217 crore loan book—86 per cent tied to housing loans including commercial real estate—it offers small-ticket loans primarily to salaried individuals, which make up 70 per cent of its borrowers. About 72 per cent of its loan book comes from South India. The company grew its book 11 per cent in FY24, driven by its increasing reach in the affordable housing segment.

1) Kothari Petrochemicals

Kothari Petrochemicals, part of the HC Kothari Group, is India’s leading—and until recently, sole—producer of Polyisobutylene (PIB), a specialty polymer used across diverse industries like lubricants, adhesives, fuel additives, personal care etc. With a strategically located 36,000 tonne (per annum) plant in Chennai, it met 91 per cent of India’s PIB demand in FY23, running at full capacity for two consecutive years. Backed by rising exports, which made up nearly 30 per cent of revenue in FY24, and strong domestic demand, the company operates a focused, high-margin niche within India’s petrochemical landscape.

The three high-scorers

These small caps prove that high growth doesn’t always come at princely valuations; the key is to spot the outliers before the market does.

Want to now shortlist fast-growing mid caps still trading at appealing levels? Explore our screener list and find the combination of growth and valuation you are looking for.
Also read: 5 mid caps that combine steady growth and solid dividends