Small-cap firms have lower market value and size compared to bigger companies. They can grow faster, but their performance is often less stable, making them riskier investments with the possibility of higher returns.
The following is the list of small-cap stocks with strong financials:
1. Indraprastha Medical Corporation Limited
Indraprastha Medical Corporation was established as a public company. The company is engaged in to improve patients’ quality of life by delivering wide-ranging, high-quality hospital services cost-effectively.
With a market capitalization of Rs.4,428.26 crores, it was trading at Rs.483.05 from its previous closing price of Rs.482.45. In Q1FY26, the company’s revenue from operations grew to Rs.365 crore from Rs.347.8 crore in Q1FY25, and in Q1FY26, net profit rose to Rs.51.46 crore from Rs.44.77 crore.
ROE is 30 percent, and ROCE is 39 percent. With a P/E of 24.48 versus the industry average of 62.02, the stock appears undervalued compared to peers. Revenue has grown at a CAGR of 15 percent over the past 3 years. Net profit CAGR is 37 percent over the past 3 years.
2. Jamna Auto Industries Limited
Jamna Auto Industries Limited is engaged in producing a range of suspension products, including traditional and parabolic leaf springs, air suspensions, and lift axles, mainly catering to commercial vehicles.
With a market capitalization of Rs.4,267.09 crores, it was trading at Rs.106.95 from its previous closing price of Rs.107.65.In Q1FY26, the company’s revenue from operations grew to Rs.573.3 crore from Rs.557.1 crore in Q1FY25, and in Q1FY26, net profit declined to Rs.45.7 crore from Rs.46.3 crore.
ROE is 19 percent, and ROCE is 23.6 percent. With a P/E of 17.76 versus the industry average of 26.63, the stock appears undervalued compared to peers. Revenue has grown at a CAGR of 10 percent over the past 3 years. Net profit CAGR is 9 percent over the past 3 years.
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3. Heritage Foods Limited
Heritage Foods Limited is engaged in providing dairy, renewable energy, and cattle feed products. Its dairy segment, which includes milk, milk-based products, and ice cream or frozen desserts.
With a market capitalization of Rs.4,507.10 crores, it was trading at Rs.485.70 from its previous closing price of Rs.471.55. In Q1FY26, the company’s revenue from operations grew to Rs.1137 crore from Rs.1,032 crore in Q1FY25, and in Q1FY26, net profit declined to Rs.40.5 crore from Rs.58.4 crore.
ROE is 20 percent, and ROCE is 25.3 percent. With a P/E of 29.54 versus the industry average of 29.01 , the stock appears overvalued compared to peers. Revenue has grown at a CAGR of 16 percent over the past 3 years. Net profit CAGR is 22 percent over the past 3 years.
Written By Jhanavi Sivakumar
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