Stocks to buy: Market expert Siddharth Sedani in a special segment ‘Sid Ki SIP’ aired on Zee Business on Wednesday (February 8) recommended stocks of four small cap companies to investors under the theme ‘Small Wonders’ for bumper return. 

Sedani noted that the small cap companies under the theme have shown phenomenal Q3 numbers. Margin pressures are likely to reduce and the next quarter results will be equally good.
 
"IT, auto, manufacturing, consumption - the quarterly numbers from these sectors have been very strong and are expected to remain the same. Hence, I have chosen today's theme - small wonders with great numbers," Sedani said. 

Four stock recommendations by Siddharth Sedani under ‘Small Wonders’ theme

KPIT Technologies Ltd
 
KPIT is an Indian multinational corporation which provides embedded software and product engineering services to automotive companies. The Pune headquartered company has development centers in India, Europe, USA, Japan and China.
 
Target: Rs 850
 
Returns in 1 year: 9%
 
Allocation: 30%

Craftsman Automation Ltd

Craftsman Automation is a small cap company operating in auto ancillaries sector. Sedani noted that the company is expected to grow by 18 per cent CAGR. "Company's revenue grew by 35 per cent in Q3 while profits grew by 37 per cent," he added. 
 
Target: Rs 3,891
 
Returns in 1 year: 15%
 
Allocation: 30%
 
Tega Industries Ltd
 
The Kolkata headquartered company is a constituent of MM Group of Companies. It provides customised products and services for mining, mineral beneficiation, bulk material handling and slurry transportation industries.
 
Target: Rs 675
 
Returns in 1 year: 6%
 
Allocation: 20%
 
Blue Star Ltd
 
Blue Star Ltd is an Indian multinational home appliances company headquartered in Mumbai. It specializes in air conditioning, commercial refrigeration and MEP. It is the country's second largest homegrown player in the air conditioning space. 
 
Target: Rs 1,593
 
Returns in 1 year: 16%
 
Allocation: 20%