Investing in financially strong microcap stocks under Rs. 500 can be a strategic move for long-term wealth creation. These lesser-known companies, often overlooked by mainstream investors, possess significant growth potential due to their innovative business models. By focusing on financially strong microcaps, investors can tap into opportunities that may yield substantial returns as these companies expand and gain market recognition.
1. Dharmaj Crop Guard Limited
Dharmaj Crop Guard Limited manufactures essential agrochemicals, including insecticides, fungicides, and herbicides for Indian agriculture. The company serves both farmers and institutional clients through B2C and B2B channels. The company also produces micro-fertilizers to enhance crop nutrition and protection.
With a market capitalization of Rs. 978 crores, Dharmaj Crop Guard Limited’s share price closed at Rs. 289 per equity share.
Dharmaj Crop Guard Limited’s revenue has increased from Rs. 524 crore in FY23 to Rs. 654 crore in FY24, which has grown by 24.81 percent YOY. The net profit of Dharmaj Crop Guard Limited has also grown by 62.96 percent, from Rs. 27 crore in FY23 to Rs. 44 crore in FY24.
Dharmaj Crop Guard Limited’s revenue and net profit have grown at a CAGR of 27.65 percent and 31.95 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 14.5 percent and 13.2 percent, respectively. The debt-to-equity ratio of the company is to be 0.35x, which shows the company is almost debt-free. Dharmaj Crop Guard Limited’s EPS is to be Rs. 12.
2. Gretex Corporate Services Limited
Gretex Corporate Services Limited operates as a specialized merchant banking firm in India, focusing on SME market segments. The company manages IPOs, FPOs, and rights issues for growing businesses. The company provides comprehensive financial services, including M&A guidance, delisting support, and valuation advisory.
With a market capitalization of Rs. 548 crores, Gretex Corporate Services Limited’s share price closed at Rs. 460 per equity share.
Gretex Corporate Services Limited’s revenue has increased from Rs. 14 crore in FY23 to Rs. 113 crore in FY24, which has grown by 707.14 percent YOY. The net profit of Gretex Corporate Services Limited has also grown by 68.18 percent from Rs. 22 crore in FY23 to Rs. 37 crore in FY24.
Gretex Corporate Services Limited’s revenue and net profit have grown at a CAGR of 235.21 percent and 233.22 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 50.2 percent and 37.4 percent, respectively. The debt-to-equity ratio of the company is to be 0.03x, which shows the company is almost debt-free. Gretex Corporate Services Limited’s EPS is to be Rs. 36.7.
Also read….
3. Swiss Military Consumer Goods Limited
Swiss Military Consumer Goods Limited markets lifestyle products under their Swiss Military brand across India. The company specializes in travel gear, home appliances, and men’s clothing. The company offers diverse products, from innerwear to kitchen appliances.
With a market capitalization of Rs. 894 crores, Swiss Military Consumer Goods Limited’s share price closed at Rs. 37.9 per equity share.
Swiss Military Consumer Goods Limited’s revenue has increased from Rs. 122 crore in FY23 to Rs. 181 crore in FY24, which has grown by 48.36 percent YOY. The net profit of Swiss Military Consumer Goods Limited has also grown by 60 percent from Rs. 5 crore in FY23 to Rs. 8 crore in FY24.
Swiss Military Consumer Goods Limited’s revenue and net profit have grown at a CAGR of 79.78 percent and 63.30 percent, respectively, over the last two years.
In terms of return ratios, the company’s ROCE and ROE should be 15.7 percent and 12 percent, respectively. The debt-to-equity ratio of the company is to be 0.15x, which shows the company is almost debt-free. Swiss Military Consumer Goods Limited’s EPS is to be Rs. 0.36.
4. Annapurna Swadisht Limited
Annapurna Swadisht Limited dominates India’s snack market with diverse food products, from chips to beverages. The company maintains a robust distribution network across six states through hundreds of stockists and distributors. The company’s manufacturing facilities produce ten distinct product categories, serving millions of customers nationwide.
With a market capitalization of Rs. 829 crores, Annapurna Swadisht Limited’s share price closed at Rs. 380 per equity share.
Annapurna Swadisht Limited’s revenue has increased from Rs. 160 crore in FY23 to Rs. 263 crore in FY24, which has grown by 64.38 percent YOY. The net profit of Annapurna Swadisht Limited has also grown by 100 percent from Rs. 7 crore in FY23 to Rs. 14 crore in FY24.
Annapurna Swadisht Limited’s revenue and net profit have grown at a CAGR of 136.03 percent and 141.01 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 19.6 percent and 16.9 percent, respectively. The debt-to-equity ratio of the company is to be 0.30x, which shows the company is almost debt-free. Annapurna Swadisht Limited’s EPS is to be Rs. 9.94.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
