Microcaps remain last bastion of cheaply valued stocks. ISec picks Nazara, Sansera, 10 others

ICICI Securities has flagged 12 counters from the microcap universe of 80 stocks that offer viable investment options with cheaper valuations and scope for expansion in risk tolerance. The brokerage firm’s report, however, cautioned investors about the liquidity risks in the microcap space. Stocks picked by ICICI Securities include Wonderla Holidays, Somany Ceramics, Greenpanel, Sansera Engineering, Isgec Heavy Engineering, Fusion Micro Finance, Repco Home Finance and Tatva Chintan. The minimum quality standards include the RoE being upwards of 10% and the earnings yield being greater than the 10-year government bond yield.