Working definition & methodology (how we chose companies)
Working definition (for this list):
“Microcap” = publicly listed Indian companies that are small by market cap and appear in microcap/small-cap screens (sources vary — many providers use ~₹50–₹500 crore or up to ₹1,000 crore as practical bands). There isn’t a single universal cut-off in India, so we used published microcap screens and Nifty Microcap constituents as my source pool.
Selection filters & analyst lens (applied to the pool):
Management quality / track record (founder experience, insider ownership, governance signals in filings and press).
Business model fit for the next 3–7 years (scalable, niche leadership, structural tailwind like drones/renewables/defence/agritech).
Evidence of execution: improving margins, revenue/profit growth, marquee customers or institutional interest where available.
Reasonable financial health (manageable leverage / improving cash flow).
We prioritized names repeatedly highlighted by reputable microcap screener and analyst pieces (Equitymaster, Moneycontrol, Samco, Screener).
Quick note: each entry: Business / Why we like management & vision / Key risk. We cite the source(s) backing the company thesis.
1. DroneAcharya Aerial Innovations
What they do: Drone solutions — training, sales, services, DGCA-certified operations; moving into defence/industrial drone applications.
Why we like it: Management has pushed from training into recurring services, signed international deals and defence orders — a focused niche play in an expected large drone TAM; analysts call it a fundamentally strong microcap with very high recent revenue/profit CAGRs.
Key risk: Drone regulations, slow enterprise adoption, and execution scaling from a small base.
2. Drone Destination (or similar DGCA-certified drone players)
What they do: Drone pilot training, Drone-as-a-Service (DAAS), agri-drone services, partnerships with large agritech players.
Why we like it: Clear go-to-market (training → services → recurring revenue), partnerships (e.g., with large cooperatives) and aggressive expansion plans — strong founder/management focus on scaling drone ecosystem.
Key risk: Capital intensity of hub expansion and competition from larger players or consolidation.
3. 20 Microns
What they do: Micronized & nano-sized mineral powders (supplies to paints, polymers, tyres, specialty chemicals).
Why I like it: High technical moat (processing to sub-micron levels), long customer list (large paint/auto clients) and a scalable industrial B2B model that benefits from materials demand. Good track record for margins relative to peers.
Key risk: Cyclicality in end markets (paints/auto/tyres) and commodity/energy cost swings.
4. Spright Agro (agribusiness / contract farming / value-added agri)
What they do: Contract farming, cultivation, processing and trading of agricultural/forestry/medicinal crops; large farmer network.
Why I like it: Management emphasis on scale (farmer network, processing) and move up the value chain (exports, branded products) — good fit for rising organized agribusiness in India per recent microcap coverage.
Key risk: Agricultural yield variability, working-capital intensity, and commodity price risk.
5. Oriental Carbon & Chemicals
What they do: Carbon products / specialty carbon chemicals (industrial inputs).
Why we like it: Microcap that recently attracted institutional interest (Bank of America stake reported), signalling third-party due diligence; niche industrial play with possible consolidation upside.
Key risk: Small market cap → low liquidity; any insider/related-party concerns need checking in filings.
6. Vintron Information (example of tech/engineering microcap flagged in screens)
What they do: Electronics/engineering services (found on microcap screens).
Why we like it: Appears repeatedly in ‘best microcap’ screens for revenue/profit improvement and niche product offerings; management continuity and order pipeline are positives cited by screeners.
Key risk: Customer concentration and margin pressure.
7. Shaily Engineering Plastics
What they do: Engineering plastics and components (auto/industrial customers).
Why we like it: Strong order book historically and specialty product positioning — cited as a microcap/small-cap multibagger in recent ET coverage for superior execution. Niche manufacturing with OEM tie-ups is a favorable business model.
Key risk: Auto sector cyclicality; dependence on OEM capex cycles.
8. Choice International (financial services / NBFC broking verticals)
What they do: Broking, financial services, wealth management (appears in Nifty Microcap lists).
Why we like it: Financial services microcaps with lean digital distribution can scale fast; Choice International has been highlighted in microcap exchanges and on Moneycontrol microcap lists for growth.
Key risk: Regulatory risk and margin pressure in broking/finance; competition from larger fintechs.
9. Ksolves India (IT / software services microcap)
What they do: IT services, specialized software solutions — appears in microcap screens.
Why we like it: High gross margins typical of niche IT services and scalable offshore model; featured in microcap lists (Screener/Smallcase) for warranted attention.
Key risk: Client concentrations, wage inflation and offshore competition.
10. A curated “deep-value / turnaround” microcap (e.g., a promising small industrial or speciality manufacturer from Screener lists)
What they do: (Varies) — I recommend one slot reserved for a deep-value microcap that shows improving governance, de-leveraging, and a focused management plan (Screener lists contain candidates).
Why we like it: Turnaround stories with new management or strategic moves often outperform in microcap space; screeners like Screener/Informed publications regularly show candidates with rising ROCE/ROE.
Key risk: Execution risk; turnarounds can fail and are binary outcomes.
Why these picks (summary of the investment thesis)
Niche leadership + technical moat: companies like 20 Microns (materials) and specialty drone players have focused capabilities that are hard to replicate quickly.
Structural growth tailwinds: drones (defence/agri), organised agribusiness, specialty materials and digital/fintech distribution are sectors expected to scale in India — early micro entrants can compound.
Management & governance signals: We prioritized names appearing in multiple analyst write-ups/screens (those are the companies where independent analysts or institutions have already done some diligence).
For example, DroneAcharya and Drone Destination appear in recent Equitymaster microcap research highlighting execution & deals.
Important caveats & risks (be blunt)
Classification variability: “microcap” ranges differ across providers; We used published microcap screens and Nifty Microcap constituents as my source pool. Always confirm current market cap and liquidity before acting.
High idiosyncratic risk: microcaps are subject to governance, low liquidity, promoter actions and accounting surprises. Always deep-dive the latest filings (shareholding patterns, related-party transactions, auditor qualifications).
Past coverage ≠ future success: many microcaps featured in media can be momentum names — separate signal (media attention) from durable advantage.
Sources we used (representative)
Equitymaster — “5 Fundamentally Strong Microcap Stocks to Watch Out for in 2025” (detailed company mini-reports including DroneAcharya, Drone Destination, 20 Microns, Spright Agro).
Nifty Microcap 250 / Moneycontrol microcap lists (pool of microcap constituents & performance metrics).
Screener.in microcap screens and curated screens (names & metrics).
Economic Times / Moneycontrol microcap coverage & examples (Shaily Engineering Plastics, Oriental Carbon story).
Smallcase / Samco microcap lists (reference lists showing candidate microcaps).
Upcoming
Next piece will be on: Deep-dive profile for any 3 of the names above (financial snapshot, recent quarterly trends, promoter holdings, key red flags + 12-month scenario returns at 3 valuation multiples). We shall pull latest figures and file citations.
Next one after that: Run a live Screener filter (market cap < ₹500–1,000 Cr, revenue growth > 20% 3-yr CAGR, debt/equity < 1, ROCE > 10%) and return a ranked list of 20 microcaps with short notes.
