In the world of investing, small-cap companies often present significant growth opportunities. This article highlights five strong small-cap companies, each with a market capitalization smaller than its annual revenue. These companies demonstrate potential for growth, as their business performance outweighs their market valuation, making them attractive picks for investors seeking high returns with manageable risk.
Here are stocks to look out for
Team Lease Services Ltd
TeamLease Services Ltd. is an Indian company founded in 2000 that provides employment-related services, including staffing, recruitment, training, and payroll processing. It operates across various sectors and focuses on staffing, IT staffing, and employability services, including operating India’s first PPP Apprenticeship Program.
With a market capitalization of Rs. 2,888.69 Crores, the shares of the company closed at Rs. 1722.65, up by 1.8 percent from its previous day’s close price of Rs. 1692.25.
Team Lease Services Ltd reported Revenue of Rs. 11,156 crore in FY25, which is over 3.94 times its market capitalization of Rs. 2,830 crore, highlighting strong business performance relative to valuation.
Gokul Agro Resources Ltd
Gokul Agro Resources Ltd. (GARL) is an Indian FMCG company that produces, distributes, and exports a wide range of edible and non-edible oils, oil meals, and related products. The company is involved in various agri-business activities, including seed crushing, oil refining, castor oil derivatives, and oleochemicals. It has an extensive domestic distribution network and operates in international markets through a subsidiary in Singapore.
With a market capitalization of Rs. 5,144.84 Crores, the shares of the company closed at Rs. 174.35, up by 0.06 percent from its previous day’s close price of Rs. 174.25.
Gokul Agro Resources Ltd reported Revenue of Rs. 19,551 crore in FY25, which is over 3.76 times its market capitalization of Rs. 5,189 crore, highlighting strong business performance relative to valuation.
Electrotherm (India) Ltd
Electrotherm (India) Ltd. is an engineering and technology company founded in 1983, with significant business segments in steel and pipe manufacturing, and a growing presence in electric vehicles, renewable energy, and transformers. The company designs and manufactures products like induction furnaces, TMT bars, and ductile iron pipes, and has also diversified into electric vehicles and wind power generation.
With a market capitalization of Rs. 1,264.02 Crores, the shares of the company closed at Rs. 991.95, down by 1.73 percent from its previous day’s close price of Rs. 1009.40.
Electrotherm (India) Ltd reported Revenue of Rs. 4,115 crore in FY25, which is over 3.11 times its market capitalization of Rs. 1,319 crore, highlighting strong business performance relative to valuation.
Ashoka Buildcon Ltd
Ashoka Buildcon Ltd. is a leading Indian construction and infrastructure company founded in 1976, headquartered in Nashik. The company specializes in highway development and engages in various infrastructure projects, including roads, railways, power, and commercial buildings. It is involved in both EPC and BOT models, along with operating and maintenance services.
With a market capitalization of Rs. 5,592.01 Crores, the shares of the company closed at Rs. 199.20, down by 0.80 percent from its previous day’s close price of Rs. 200.80.
Ashoka Buildcon Ltd reported Revenue of Rs. 10,037 crore in FY25, which is over 1.73 times its market capitalization of Rs. 5,776 crore, highlighting strong business performance relative to valuation.
J Kumar Infraprojects Ltd
J Kumar Infraprojects Ltd. is an Indian infrastructure company, founded in 1980, that specializes in constructing large-scale projects like metro systems, expressways, flyovers, and bridges. The company focuses on complex urban infrastructure, transportation engineering, and other civil construction work. It has a reputation for delivering projects across various sectors, including metro, roads, and water and sewage projects.
With a market capitalization of Rs. 4,684.07 Crores, the shares of the company closed at Rs. 619.05, down by 5.4 percent from its previous day’s close price of Rs. 654.85.
J Kumar Infraprojects Ltd reported Revenue of Rs. 5,693 crore in FY25, which is over 1.18 times its market capitalization of Rs. 4,818 crore, highlighting strong business performance relative to valuation.
Written by Sridhar J
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. Trade Brains Technologies Private Limited 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.
