While market headlines often focus on institutional moves, retail investors have been steadily making their presence felt in the small-cap space. An analysis of December-quarter shareholding data reveals that retail investors have increased their stakes in nearly 386 small-cap stocks for two consecutive quarters, signalling growing confidence in select smaller companies. (Retail investors include resident individuals holding nominal share capital of up to Rs 2 lakh.Of the stocks where retail ownership has risen, around 40 small-cap companies have delivered share price gains of over 20% in the past year, outperforming broader market indices. More strikingly, 11 stocks from this list have surged between 50% and 370% over the same period, rewarding patient retail investors. Among them, five stocks emerged as true multibaggers, more than doubling investor wealth within just a year. (Data Source: ACE Equity) Retail Favourites

Retail investors bet big on these 11 small-caps, 5 turn multibaggers

Growing Confidence of Retail Investors in Small-Cap Stocks

While market headlines often focus on institutional moves, retail investors have been steadily making their presence felt in the small-cap space. According to an analysis of December-quarter shareholding data, retail investors have increased their stakes in nearly 386 small-cap stocks for two consecutive quarters, signalling growing confidence in select smaller companies.

Retail Investors: A Growing Force in Small-Cap Market

Definition: Retail investors include resident individuals holding nominal share capital of up to Rs 2 lakh.
Trends: Retail ownership has risen in around 40 small-cap companies, delivering share price gains of over 20% in the past year.
Outperformers: 11 stocks from this list have surged between 50% and 370% over the same period, rewarding patient retail investors.

Top Performing Stocks:

Stock 1: The stock surged 369% in the past year, rising from Rs 386 to Rs 1,809. Retail shareholding increased from 1.00% in Jun'25 to 1.04% in Sept'25, and further to 2.15% in Dec'25.
Stock 2: The stock posted a 117% rally over one year, advancing from Rs 648 to Rs 1,407. Retail participation increased from 5.47% in Jun'25 to 6.57% in Sept'25 and 8.09% in Dec'25.
Stock 3: The stock jumped 105% in the past year, moving from Rs 37 to Rs 76. Retail shareholding rose sharply from 2.64% in Jun'25 to 6.29% in Sept'25, and 6.50% in Dec'25.

Data Source: ACE Equity