Small-cap Stocks: Risks and opportunities

Understanding small cap companies and how you can find opportunities in it. Also understanding the risks involved in it.

The SRK Industries stock rose 2,000% from Rs 7.78 to Rs 185.70 in 2013. SRK, with a market capitalisation of just Rs 343 crore, has been making aprons and cots since March 2012. Last year, it started making inroads into the real estate markets of Mumbai and Tamil Nadu.
Does this mean you missed a great opportunity to make money? The answer, at the end of 2013, was a big yes. But wait. The stock fell 70% in the following weeks and was at Rs 55.60 on February 28. Now, does this mean that not taking part in the stupendous growth of the SRK stock was a wise decision?

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