Markets are close to all time highs and the small caps and mid caps space is on a boom! In this article we share some small caps that can give "multibagger" returns:
Note: Raghav Behani is a SEBI registered Research Analyst. The stocks discussed below may or may not be recommended to our clients. To get research backed long term investment ideas, check out out Membership Plans
i) Pincon Spirit:
Market Cap: Rs 294 Crores
Pincon spirit is the flagship company of PSL Group which operates in the following segments:
- IMFL
-IMIL
- Retail Chains
-FMCG
Positives:
- The company has seen a fast growth in sales and profits
- The ratios appear decent for margins and returns
- Valuations are not expensive
Negatives:
- The company has a big pile of debt in it's books and it is constantly rising
- The company is losing cash big time and is unable to convert profits into cash
- The company has low interest coverage ratio
- Low promoter holding
ii) Poddar Pigments:
Market Cap: Rs 270 Crores
Poddar pigments manufactures colours and additive masterbatches. It is the first company in India that manufactures masterbatches for Nylon, Polypropylene and polyester multi filament.
Positives:
- 5 Year growth rate is healthy for sales and PAT figures
- Company has decent ROE
- Very low debt levels
Negatives:
- Short term growth is in single digits
- Margins are falling
- Company enjoys little/NO pricing power
iii) Sukhjit Starch
Market Cap: Rs 207 Crores
The Punjab based starch manufacturer trades at low PE levels. Does it have the potential to give 3x-4x returns?
Positives:
- Low PE, leaves room for PE expansion
- Debt equity ratio is low
- Promoter holding is 60% +
Negatives:
- Company is unable to maintain margins
- ROE is low
- Margins are trending lower
iv) Indo Borax (IBCL):
Market Cap: Rs 85 Crores
This stock is part of our free portfolio. You can look it up here: Past Performance
v) Medi Caps:
Market Cap: Rs 27 Crores
The empty hard gelatin capsule maker could be a good proxy investment for the booming pharma industry in India.
Positives:
- The company has a P/BV ratio of just 0.33
- The company has no debt
- The company can benefit from a booming pharma industry
Negatives:
- Short term growth has hit a bump
- Margins are trending lower
- The company has extremely low ROE
The stocks shared here may or may not be advised to our clients. To get long term investment ideas in equities: Click Here
Note: Raghav Behani is a SEBI registered Research Analyst. The stocks discussed below may or may not be recommended to our clients. To get research backed long term investment ideas, check out out Membership Plans
i) Pincon Spirit:
Market Cap: Rs 294 Crores
Pincon spirit is the flagship company of PSL Group which operates in the following segments:
- IMFL
-IMIL
- Retail Chains
-FMCG
Positives:
- The company has seen a fast growth in sales and profits
- The ratios appear decent for margins and returns
- Valuations are not expensive
Negatives:
- The company has a big pile of debt in it's books and it is constantly rising
- The company is losing cash big time and is unable to convert profits into cash
- The company has low interest coverage ratio
- Low promoter holding
ii) Poddar Pigments:
Market Cap: Rs 270 Crores
Poddar pigments manufactures colours and additive masterbatches. It is the first company in India that manufactures masterbatches for Nylon, Polypropylene and polyester multi filament.
Positives:
- 5 Year growth rate is healthy for sales and PAT figures
- Company has decent ROE
- Very low debt levels
Negatives:
- Short term growth is in single digits
- Margins are falling
- Company enjoys little/NO pricing power
iii) Sukhjit Starch
Market Cap: Rs 207 Crores
Positives:
- Low PE, leaves room for PE expansion
- Debt equity ratio is low
- Promoter holding is 60% +
Negatives:
- Company is unable to maintain margins
- ROE is low
- Margins are trending lower
iv) Indo Borax (IBCL):
Market Cap: Rs 85 Crores
v) Medi Caps:
Market Cap: Rs 27 Crores
Positives:
- The company has a P/BV ratio of just 0.33
- The company has no debt
- The company can benefit from a booming pharma industry
Negatives:
- Short term growth has hit a bump
- Margins are trending lower
- The company has extremely low ROE
The stocks shared here may or may not be advised to our clients. To get long term investment ideas in equities: Click Here
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