Smallcap Stocks to Buy: The year 2025 was very difficult for smallcap investors. Largecap stocks definitely gave some returns, but smallcap indices slipped by about 6 percent. This decline created fear and uncertainty in the minds of investors. Many people assumed that the golden era of small-cap stocks was over. But now at the beginning of the year 2026, the picture seems to be changing. Brokerage firm InCred Equities, in its recent report, has selected six such smallcap stocks, which can give investors returns ranging from 20 percent to 221 percent in this year 2026.
1. Camlin Fine Sciences
Brokerage firm Increed Equities has placed its biggest bet on this stock. The brokerage has set a target price of Rs 474 for the shares of Camlin Fine Sciences. This is estimated to be a tremendous increase of about 221 percent in its stock from Tuesday’s closing price. The brokerage believes that the company’s revenue growth may increase at the rate of about 18.8 percent CAGR between FY26 to FY28. This growth will be supported by strong sales of vanillin and specialty blends.
A big improvement can be seen not only in earnings but also in margins. The company’s EBITDA margin is expected to increase from around 10 per cent in FY25 to 21.8 per cent in FY28. Due to this, a strong growth in EBITDA is being estimated at a CAGR of about 56.8 percent.
2. Globus Spirits
The second stock is Globus Spirits. This company is in the business related to liquor and ethanol. For some time, the sector was under pressure from raw material prices, especially high prices of maize. But now the situation is changing. After Kharif season, maize has become cheaper and fuel cost is also becoming normal. According to the brokerage, due to this the company’s margins have also started improving rapidly. Increed Equities has given a target price of ₹1,850 for Globus Spirits, which suggests an upside of about 94 per cent from the current level.
According to the brokerage, the company’s manufacturing margin in the ethanol and ENA segments increased from ₹2 per liter in FY25 to ₹5 per liter in the September quarter. This improvement is expected to continue gradually.
3. Deepak Fertilizer
The third share is Deepak Fertilizer. Brokerage firm Increed Equities has set a target price of Rs 2,051 for this stock, which indicates an upside of about 70.4 percent from the current level. According to the brokerage, strong demand from mining, infrastructure and specialty chemicals sectors is playing an important role in driving the company’s growth.
Apart from this, the Government of India has set a target of increasing coal production to 1.5 billion tonnes by FY 2030 and this is also being considered a big positive for the company. This is expected to increase the consumption of TAN (Technical Ammonium Nitrate), which can prove beneficial for the business of Deepak Fertilizers.
4. TCPL Packaging
Talking about the fourth smallcap stock, brokerage houses seem positive about TCPL Packaging. Analysts have given a target price of ₹ 4,100 for this stock, which indicates an upside of about 34.1 percent from the current level. The brokerage believes that the company can directly benefit from the recovery in the FMCG sector. In particular, the volume growth of FMCG companies is expected to be better in the second half of the year.
In such a situation, TCPL Packaging’s earnings may improve due to increasing demand for packaging. The company’s strong presence and experience working with big FMCG brands could make it a big beneficiary of this recovery.
5. VRL Logistics
Talking about the fifth smallcap stock, the brokerage house is also keeping an eye on VRL Logistics. The brokerage has set a target price of Rs 325 for this share, which indicates an upside of about 24 percent from the current level.
The company’s management is hopeful that EBITDA margins may remain stable between 18 to 19 percent till FY27. EBITDA margin in the recent September quarter was 19.2 percent. On this basis, brokerage firm Increed has assumed an EBITDA margin of 18.8 percent for FY27. This is a big improvement over the average 14.7 per cent margin recorded between FY20 to FY24.
6. Thyrocare Technologies
Talking about the sixth and last smallcap stock, the brokerage house’s outlook on Thyrocare Technologies remains positive. The brokerage has set a target price of ₹ 540 for this stock, which indicates an upside of about 20 percent from the current level.
The brokerage reported that in FY25 the company made two acquisitions and expanded aggressively by adding 1,600 new franchises. This initially put pressure on the company’s margins. But despite this the company has shown tremendous improvement in profits. The company’s margin increased from 26.7 percent in FY24 to 30.7 percent in FY25. The main reason for this improvement was the benefit of better gross margin and operating leverage. The company aims to maintain a similar margin track in FY26 also. Due to this, brokerage is bullish on this stock.
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