Small Cap Stocks: These 5 small cap stocks with high ROE and high profit margin in niches are rated “Strong Buy” and “Buy” by analysts


Small-cap companies may seem like risky bets, but having the right financial and other screens in place can lead to stocks with wealth-building potential. ET screener powered by Refinitiv’s Stock Report Plus lists stocks with strong upside potential over the next 12 months, with an average recommendation rating of “buy” or “strong buy.”

Small-cap companies that operate in niche products and services or have brands with high market share tend to attract market attention. In order to search for such companies, different combinations of financial ratios were used, with high return on equity being one of the main filters. Along with this, high net profit margins (NPMs) were used to find companies for which analyst ratings were either a “Strong Buy” or a “Buy”. A business should also have


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