Six small-cap stocks that stand out from the rest

Small-cap companies are usually attractive owing to their potentially high returns. However, chasing small caps can come back to haunt you, as they are inherently volatile. But worry not; we have identified small caps that have performed consistently well in the last five years. What do we mean by 'highly-rated small caps'? We simply used our newly-launched 'Stock Ratings' tool to find companies whose market cap ranges between Rs 500-1,000 crore, with at least four stars and a minimum quality score of nine between FY18 and November 2023. When we inputted our criteria on Stock Ratings, these are the companies it spat out instantly: Allsec Technologies Cheviot Company Eldeco Housing & Industries Gandhi Special Tubes IST Sandesh Good quality small-caps These companies have been able to sustain a quality rating of at least eight in the past five years Company M-cap (Rs cr) FY18 quality score FY18 stock rating Current quality score Current stock rating Allsec Technologies 986 9 5 10 5 Cheviot Company 858 9 5 10