While a majority of the crowd prefers flashy large-caps, savvy investors know real wealth is often built in the shadows of the market.
Meet the quiet contenders that fit the bill. Three smallcap stocks backed by India’s financial giant, Life Insurance Corporation (LIC), managing over Rs 49 trillion in assets.
These aren’t your typical headline-grabbers—they’re under-the-radar performers with robust fundamentals, and a heavyweight investor betting big on their future.
Why does LIC’s stake matter? When the largest institutional investor in India quietly accumulates shares in overlooked smallcaps, it’s not a whim—it’s a signal. These companies could offer huge value.
We’ve dug deep to spotlight these hidden opportunities—before the market catches on.
Ready to explore the smallcaps flying under Dalal Street’s radar? Let’s dive in.
#1 CARE Ratings
First on this list is CARE Ratings a leading credit rating agency in India, domiciled and incorporated in India.
CARE provides credit ratings, research, and risk advisory services across various sectors. While its core business remains credit ratings, contributing 94.52% of turnover in FY24, the company is actively diversifying its business ventures into non-rating areas.
The non-rating business revenue contribution increased from 6% in FY23 to 10% in FY24.
As of 31 March 2025, LIC holds 9.5% stake in the company.
Coming to its financial performance, the company has delivered a top-line growth of 10% compounded annual growth rate (CAGR) over a 3-year period and a net profit CAGR of 4%.
The last 3-year return on equity (ROE) has been 13%.
When it comes to the stock price, it has come off its high seen last November and has been consolidating for the last few months.
CARE Ratings Stock Price Performance – 1 Year
Looking ahead, CARE aims to position itself as a knowledge institution. It publishes various reports and opinion pieces, including monthly Infra and BFSI newsletters, Foresights, knowledge papers, thematic reports, and daily updates like the Morning Brief.
The company sees potential in India’s movement towards a US$ 5 trillion economy, which is expected to necessitate investment and funding from lending institutions/markets, where CARE acts as an important intermediary.
It is also embracing automation, with the implementation of a sophisticated workflow automation process expected in the next financial year.
The strong year-on-year (YoY) growth rates in Q3 FY25 for both ratings (20%) and non-ratings (38%) businesses suggest positive momentum aligned with the stated growth strategy.
#2 Dhanuka Agritech
Second on this list is Dhanuka Agritech a leading Indian agrochemical company. It has a pan-India presence in all major states.
Dhanuka’s key focus has been on the introduction of novel chemistries and extensive product development, which distinguishes it from the rest of the industry.
The company operates 4 manufacturing units and 41 warehouses across India, serving around 6,500 distributors, and about 80,000 retailers.
As of 31 March 2025, LIC holds 2.95% stake in the company.
Coming to its financial performance, the company has delivered a top-line growth of 8% CAGR over 3 years and a net profit CAGR of 5%.
The last 3-year return on equity (ROE) has been 22%.
Taking the past slow growth as a cue, the stock has been consolidating for the past year.
Dhanuka Agritech Stock Price Performance – 1 Year
Looking ahead, this slow growth is expected to change. In FY25, Dhanuka Agritech has a positive outlook with ambitious growth plans and a robust product pipeline.
It is expecting double-digit growth (about 14%) in revenue as well as an earnings before interest, taxes, depreciation, and amortization (EBITDA) improvement of about 1%.
The demand for the company’s products is expected to be very good due to a predicted above 100% rainfall this year on the back of developing La Niña conditions.
Looking ahead to FY26, excluding the revenue from the newly acquired Bayer molecules, the company expects a top line growth of around 15%, primarily driven by volume growth.
It is planning almost 8 new product launches over the next 2 years, with a strong pipeline of section 9(3) and 9(4) products. More new products are under development in R&D for the next 2-3 years.
#3 Easy Trip Planners
Third on this list is Easy Trip Planners, popularly known as EaseMyTrip, is one of India’s leading online travel companies.
Founded in 2008, it began its journey focused on the B2B2C distribution channel, providing travel agents access to domestic airline tickets through its online portal.
Over time, the company expanded its operations to include the B2C distribution channel in 2011 to cater to individual customers and the B2E distribution channel in 2013, offering travel solutions to corporate clients.
EaseMyTrip positions itself as a one-stop travel destination offering a comprehensive range of end-to-end travel solutions and ancillary services.
The company is notable for revolutionising the online travel agency (OTA) landscape with innovations like zero convenience fees (when alternate discounts are not applied) and full refunds.
As of 31 March 2025, LIC holds 2.36% stake in the company.
Coming to its financial performance, the company has delivered a top-line growth of 52% CAGR over 3 years and a net profit CAGR of 38%.
The last 3-year return on equity (ROE) has been 41%.
But if we look at the stock price, it has been going in the opposite direction for the past year.
Easy Trip Planners Stock Price Performance – 1 Year
This is due to an exceptional loss because of the write-off of recoverables from Go Airlines.
Looking ahead, the upcoming quarters are expected to be better from a travel perspective compared to Q3. The overall outlook for the Indian travel industry is robust.
There is a strong focus on expanding the non-air verticals, particularly hotels. Hotel segment bookings have shown significant growth (75% in Q2 FY25, 172% in Q3 FY25). The trains, buses, and others segments also grew.
The target is for non-air sectors (excluding flights) to contribute 25% of the business by FY26, up from around 13-14% (11.1% hotels + 2% trains/buses/others) in 9MFY25.
It’s expanding its international footprint too. The Dubai business is growing and considered sustainable, with both flight and hotel bookings increasing. The company anticipates significant growth in the UK market and has expanded its presence in UAE and Thailand as well.
The recent acquisitions of Guideline Travels Holidays India, TripShope Travel Technologies, and Dook Travels (51% stake each in FY24) are expected to expand market reach, diversify expertise, and broaden global reach.
Conclusion
Smallcap stocks are often referred as high-risk gambling, but when a conservative veteran like LIC takes a position, it demands another form.
Known for its disciplined, research-supported strategies, LIC’s involvement suggests that these companies can reduce the possibilities of evaluation yet to catch unused capacity, turnaround possibilities, or market eyes.
Does this make them a certain win for retail investors? no way. However, the approval of LIC’s approval often indicates stability and latent value in unstable stock.
Nevertheless, retail investors should run carefully. LIC operates on a separate aircraft – deep pockets, refined risk structures and decades of horizon.
Happy Investing.
Disclaimer
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