Investors should focus on select emerging penny stocks backed by significant institutional stakes as these represent high-growth potential firms capturing market shifts. Such investments offer unique opportunities for portfolio diversification and early access to industry innovators, signaling promising trends for the sector and enhancing investor confidence.
The Nippon India Small Cap Fund – Growth is a mutual fund from Nippon India Mutual Fund, launched in 2010. It invests mainly in small company stocks to grow your money over time. Managed by experts like Samir Rachh, it has over Rs. 64,000 crore in assets and a recent NAV around Rs. 187.6. It’s for long-term investors okay with high risk for big returns.
1. Credo Brands Marketing
Company designs and sells men’s fashion wear under the “Mufti” brand. The company focuses on casual apparel and has expanded its presence through retail stores and online platforms.
Credo Brands Marketing Limited’s stock, with a market capitalisation of Rs. 745 crores rose to Rs. 115.70, hitting a high of up to 1.97 percent from its previous closing price of Rs. 113.46. Nippon India Small Cap Fund – Growth currently owns about 10.49 lakh shares, which together are worth around Rs. 11.88 crore at the current market price of Rs. 112.83 per share.
The company reported revenue of Rs. 153 crore in Q4FY25, up 15% YoY from Rs. 133 crore but marginally down 2% QoQ compared to Rs. 156 crore in Q3FY24. The 3-year sales CAGR stands at 22%, indicating consistent top-line expansion driven by strong operational performance and healthy demand across key segments.
Net profit for Q4FY25 rose sharply by 100% YoY to Rs. 14 crore from Rs. 7 crore but declined 22% QoQ from Rs. 18 crore in the previous quarter. The firm’s 3-year profit CAGR of 24% and ROE CAGR of 22% reflect sustained growth and improving profitability, despite near-term quarterly moderation.
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2. R K Swamy
Aleading marketing and communications group offering advertising, media, and digital services. It serves well-known brands across India through integrated marketing campaigns and analytics-driven strategies.
R K Swamy Limited’s stock, with a market capitalisation of Rs. 672 crores fell to Rs. 132.20, hitting a low of up to 1.76 percent from its previous closing price of Rs. 134.57. Nippon India Small Cap Fund – Growth currently owns about 19.28 lakh shares, which together are worth around Rs. 26.57 crore at the current market price of Rs. 137.54 per share.
The company reported revenue of Rs. 77.57 crore in Q1FY26, up 13.5% YoY from Rs. 68.37 crore in Q1FY25 but down 7.1% QoQ compared to Rs. 83.51 crore in Q4FY25. Over the past three years, revenue has grown at a negative CAGR of 1%, indicating stagnant long-term sales momentum.
Net profit stood at Rs. 2.87 crore in Q1FY26, marking a 31.6% YoY rise from Rs. 2.18 crore but a steep 76.7% QoQ decline from Rs. 12.33 crore in the previous quarter. Despite fluctuating quarterly performance, the firm maintained a 3-year profit CAGR of 8% and a robust ROE CAGR of 21%, reflecting consistent profitability efficiency.
Written By Fazal Ul Vahab C H
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