Micro-cap stocks often present investors with high-growth opportunities driven by expanding businesses, innovative offerings, and sector-specific demand. Over the past three years, several micro-cap companies across sectors such as power, textiles, finance, and merchant banking have showcased exceptional compounded profit growth alongside strong stock price appreciation.
Below, we take a closer look at five such micro stocks that have delivered three-year net profit CAGRs of up to 278 percent, reflecting their strong financial performance and market re-rating.
1. RMC Switchgears Ltd
RMC Switchgears Limited operates in the switchgear engineering business in India, offering meter boxes for energy meters, distribution and junction boxes, FRP gratings, cable trays, bus bars, and pole-mounted street light boxes.
It also undertakes EPC contracts in the power distribution and transmission sector. Formerly known as RMC Switch Gears Limited, the company was incorporated in 1994 and changed its name in 2016. Headquartered in Jaipur, the company has built its expertise around providing innovative and durable power management solutions.
The company has a market cap of Rs. 789.50 crore and a current market price of Rs. 750. Over the last three years, its stock price delivered a CAGR of 146.19 percent, while compounded profit growth stood at an impressive 278.34 percent. The company maintains a debt-to-equity ratio of 0.55 with total debt of Rs. 58.65 crore.
2. Thomas Scott Ltd
Thomas Scott (India) Limited is engaged in the manufacturing and trading of textile products, particularly men’s formal, casual, and semi-formal wear. Its brand portfolio includes Hammersmith, Bang & Scott, Italian Gold, and Thomas Scott.
Founded in 2010 and based in Mumbai, the company caters to evolving fashion preferences by offering quality fabrics and stylish designs for the Indian market. Its focus on building strong in-house brands has enabled it to create a niche in the highly competitive apparel industry.
The company has a market cap of Rs. 538.93 crore and a current market price of Rs. 367.35. Over the last three years, its stock price CAGR was 109.01 percent, while compounded profit growth reached 176.04 percent. The company has a debt-to-equity ratio of 0.13 with total debt of Rs. 13.48 crore.
3. Unifinz Capital India Ltd
Unifinz Capital India Limited functions as a non-banking finance company providing instant personal loans to salaried customers. It also operates a credit-enabled fintech platform under the “lendingplate” brand to streamline its lending operations.
The company extends long-term, short-term, and instant cash loans, especially targeting professionals. Established in 1982 and headquartered in New Delhi, it was formerly known as Shree Worstex Limited before rebranding as Unifinz Capital India Limited in December 2022.
The company has a market cap of Rs. 508.19 crore and a current market price of Rs. 574. Its stock price CAGR over three years was 103.48 percent, while compounded profit growth stood at 167.33 percent. The debt-to-equity ratio is 0.42, with overall debt levels at Rs. 32.94 crore.
4. Viviana Power Ltd
Viviana Power Tech Limited operates in the power transmission, distribution, and EPC segment, providing services that include supply, erection, testing, and commissioning of power transmission lines and substations.
The company also undertakes turnkey electrical system projects, distribution network establishment, underground cabling, and liaison services. Additionally, it is involved in upgradation and modification of power systems, transformer manufacturing, and even real estate development. Founded in 2014, the company is headquartered in Vadodara, Gujarat.
The company has a market cap of Rs. 897.52 crore and a current market price of Rs. 1430. Over three years, its stock price CAGR was 137.17 percent, while compounded profit growth reached 91.85 percent. The company carries a debt-to-equity ratio of 0.84 with total debt of Rs. 51.03 crore.
5. Aryaman Financial Services Ltd
Aryaman Financial Services Limited, along with its subsidiaries, provides a wide range of merchant banking services. These include lead management and syndication of IPOs, FPOs, rights issues, QIPs, and preferential allotments, along with advisory services for M&A transactions, venture funding, and structured finance.
The company also offers stock and commodity broking services, private equity advisory, and corporate finance solutions. Founded in 1994 and based in Mumbai, it operates as a subsidiary of Mahshri Enterprises Pvt. Ltd.
The company has a market cap of Rs. 919.74 crore and a current market price of Rs. 751. Over the last three years, its stock price CAGR was 122.74 percent, while compounded profit growth stood at 89.20 percent. Its debt-to-equity ratio is 0.22 with total debt of Rs. 28.02 crore.
written By Manan Gangwar
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