Investors are increasingly eyeing small-cap stocks that have steadily built strong cash reserves over the past three years. A sharp rise in cash holdings suggests better financial control, improved earnings quality, and flexibility to invest in growth, making these companies more resilient in an uncertain market environment. The following is a list of stocks that have significantly increased cash holdings in the past two years.
1. Aeroflex Industries
Aeroflex Industries manufactures flexible flow solutions, including stainless steel hoses and assemblies. The company caters to global industries like oil and gas, chemicals, and automotive with high-quality, export-driven products.
Aeroflex Industries Limited’s stock, with a market capitalisation of Rs. 2,661 crores, fell to Rs. 202, hitting a low of up to 1.9 percent from its previous closing price of Rs. 205.93.
The company’s reserves grew to Rs. 317 crore in FY2025 from Rs. 267 crore in FY2024, marking a YoY growth of nearly 19%. Compared to FY2023 levels of Rs. 91 crore, reserves have expanded 248% in just two years, reflecting consistent profit retention and financial discipline.
This growth aligns with its strong 3-year performance metrics: Sales CAGR at 16%, Profit CAGR at 25%, and a 20% CAGR in Return on Equity (ROE), signalling healthy operational efficiency and value creation for shareholders.
2. Shilchar Technologies
Shilchar Technologies specialises in manufacturing transformers for power, solar, and wind energy sectors. It supplies domestic and global markets, focusing on quality engineering and customised energy-efficient transformer solutions.
Shilchar Technologies Limited’s stock, with a market capitalisation of Rs. 5,501 crores, fell to Rs. 4,710, hitting a low of up to 3.8 percent from its previous closing price of Rs. 4,898.45.
The company’s reserves rose sharply to Rs. 339 crore in FY2025 from Rs. 202 crore in FY2024, registering a YoY growth of 68%. Compared to FY2023 reserves of Rs. 118 crore, the figure has increased by 187% in two years, indicating robust earnings and strong capital retention.
This growth is backed by exceptional fundamentals: a 3-year sales CAGR of 51%, a profit CAGR of 119%, and an ROE CAGR of 52% highlighting aggressive expansion, high profitability, and efficient capital deployment.
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3. Dynamic Cables
Dynamic Cables produces power and control cables used in utilities, infrastructure, and industrial projects. The company serves state electricity boards and private players with reliable, high-performance cable solutions.
Dynamic Cables Limited’s stock, with a market capitalisation of Rs. 1,953 crores, fell to Rs. 396, hitting a low of up to 3.1 percent from its previous closing price of Rs. 408.85.
The company’s reserves surged to Rs. 350 crore in FY2025 from Rs. 192 crore in FY2024, reflecting a YoY growth of 82%. Compared to FY2023 reserves of Rs. 155 crore, the reserves have gone up by 126% over two years, showcasing sustained earnings growth and solid internal accruals.
This strong reserve build-up is supported by a 3-year sales CAGR of 22%, profit CAGR of 28%, and ROE CAGR of 20%, underlining consistent business expansion, improving profitability, and effective return on shareholder capital.
4. Inox India
Inox India designs and manufactures cryogenic equipment, including storage tanks and transport vessels. It supports industries like LNG, healthcare, and industrial gases with innovative, engineered cryogenic solutions worldwide.
Inox India Limited’s stock, with a market capitalisation of Rs. 10,853 crores, fell to Rs. 1,180.10, hitting a low of up to 1.83 percent from its previous closing price of Rs. 1,202.2.
The company’s reserves climbed to Rs. 856 crore in FY2025 from Rs. 631 crore in FY2024, recording a YoY growth of 36%. Compared to Rs. 531 crore in FY2023, reserves have grown by over 61% in two years, reflecting steady profit retention and financial strength.
This performance is backed by a 3-year sales CAGR of 19%, a profit CAGR of 20%, and an impressive ROE CAGR of 30%, indicating consistent growth, efficient capital usage, and strong shareholder value creation.
Written By Fazal Ul Vahab C H
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