Best Microcap Stocks Under Rs 1000 – Analysis & Top Picks

Best Microcap Stocks Under Rs 1000 : The possibilities are limitless if we can seize them at the right time and place. No one can predict the potential of everything we get. Likewise, the companies we choose in the Microcap segment act in the same way. In this article, we will fundamentally analyze Best Microcap Stocks Under Rs 1000, we shall see the list of stocks and its fundamentals.

Best Microcap Stocks Under Rs 1000

1. Beta Drugs Ltd

Beta Drugs was incorporated in 2005 and started by Vijay Batra. It deals with cancer medicines in the pharmaceutical industry. 

The company earns its revenue from trading and manufacturing pharmaceutical products. 

Their presence is in over 15 countries, with more than 50 products registered in those countries. In contract manufacturing, it deals with more than 49 companies that primarily deal in the manufacture of drugs.

The Indian pharmaceutical sector is one of the largest generic medicine manufacturers in the world, and the industry has grown at a CAGR of 9.43% and is expected to reach $130 billion in value in 2030. This growth is attributable to an increase in research expenses and advancements in technology in product development and manufacturing.

The company reported revenue of Rs. 227.11 crore in FY23, up 23.54% from Rs. 183.84 crore in FY22. Revenues have been growing steadily at a CAGR of 36.18% for the past 5 years.

Their net profits increased at a healthy rate of 23.72% in FY23, reaching Rs. 30.72 crore from Rs. 24.83 crore in FY22. Their higher profits are a result of both revenue growth and OPM expansion, which increased to 23.39% in FY23 from 17.91% in FY19.  

In FY23, ROE and RoCE were 28.55% and 33.94%, respectively, displaying a higher return to shareholders and better use of available resources, such as debt, to finance business operations.

Since debt reached an all-time low of 0.17 in FY23, interest coverage is also at a better rate at 18 times, which suggests that the business is financially stable and interest can be easily covered.

2. India Motor Parts and Accessories Ltd

The company was incorporated in 1954 under the group company TVS. They deal in the distribution of accessories and spare parts from over 50 manufacturers throughout India. They sell all kinds of automobile parts, including motor parts and engine group components such as brake systems, fasteners, radiators, and other components.

Their sole business is the sale and distribution of automotive spare parts. To increase their customer base, they have opened three more branches in rural areas and added two more product lines.

The transition from internal combustion engines to electric vehicles is a major development in the Indian automobile industry. The government’s introduction of PLI schemes for auto components has benefited the industry, and by 2026, investments exceeding Rs. 42,500 crore are anticipated.

IMPAL recorded revenue of Rs. 725.92 crore for FY23, a 12.36% increase from Rs. 646.09 crore for FY22. This growth is due to an increase in spare parts. Revenue is in an increasing trend despite COVID lockdown challenges.

Net profits were Rs. 75.14 crore in FY23, up 23.45% from FY22. Profits increased due to an increase in other income, which increased by 105% year on year to Rs. 30.57 crore.

Over the years, OPM has ranged from 8% to 9%, while NPM has remained stable. 

RoE and RoCE were 5.78% and 7.19%, respectively, up from 4.55% and 5.67%. This ratio is commendable given that this is a trading company.

The company is debt-free, and the interest coverage of 9,373 times indicates that the company is more capable of covering interest obligations.

3. Gloster Ltd

Gloster was incorporated in 1879 under the name Kettlewell Bullen & Company Limited. The promoters are the House of Bangurs, who bought the company in 1954.

The company earns money by manufacturing and selling jute and jute-related products in India and abroad. In FY23, revenues from India accounted for 72.5%, the Americas 5.38%, Europe 12.35%, Asia 4.32%, Australia 2.76%, and others 2.69%.

The Indian textile industry exported $16.2 billion in FY23 and is expected to exceed $30 billion by 2027, with a global market share of 4.6%–4.9%. The government has approved 100% FDI in the textile industry. The textile sector received an allocation of Rs. 4,389.24 crores in the most recent Union Budget, indicating room for industry growth.

The company’s revenue decreased by 3.22% to Rs. 710.18 crore in FY23 from Rs. 733.82 crore in FY22. The revenue was stagnant from 2019 to 2021 until it rose sharply in 2022 and remained flat in 2023.

Net profits decreased 16.68% to Rs. 54.39 crore in FY23 from Rs. 65.28 crore in FY22. Profitability has been affected by the increase in employee costs.

OPM and NPM decreased from 13.04% and 8.9% in FY22 to 11.71% and 7.66% in FY23. Over the last five years, the OPM has been decreasing while the NPM has been fluctuating.

When comparing FY23 to FY22, RoE and RoCE performed at 5.65% and 8.62%, respectively. This suggests a decline, but better fund utilization is shown by RoCE being greater than RoE.

Interest coverage is comfortably at 51 times in FY23, and D/E is too low and does not raise concerns about financial strength.

4. Nitta Gelatin India Ltd

Kerala State Industrial Development Corporation Ltd. and Nitta Gelatin, Japan, founded the business together in 1975. They engaged in business ventures such as the use of gelatin for food and pharmaceutical applications, the use of dicalcium phosphate as an ingredient in poultry feed, and the use of chitosan and ossein for industrial and agricultural uses.

The company exports more than 60% of its products across 35 countries. They operate in a single segment because they manufacture and sell gelatin, ossein, DCP, and collagen peptides.

Compared to Rs. 505.98 crore in FY22, the company’s revenue for FY23 was Rs. 565.37 crore. Revenue has increased at a CAGR of 16.86% over the last five years. Net profits in FY23 were Rs. 73.9 crore, up from Rs. 34.85 crore in FY22. The 112% increase is attributed to cost control in raw materials.

OPM and NPM stood at 20.08% and 13.07% in FY23. OPM has significantly improved in FY23 as compared to 12.71% and 6.89% in FY22.

RoE and RoCE were 24% and 33% in FY23, respectively, due to increased profitability and RoCE determining better returns on capital structure.

Debt to equity is at its lowest level in five years, and interest coverage has increased to 11.87 times, implying that interest costs can be covered by 11.87 times EBIT.

5. Empire Industries Ltd

Empire Dyeing Co. Ltd. was purchased by S.C. Malhotra in 1963 and renamed Empire Industries in 1975. They began in textile processing and later expanded into the manufacture of bottles, jars, EOT cranes, and the marketing of imported machine tools through acquisitions.

In FY23, the company’s diversified revenue came from manufacturing (35.23%), trading, business support services, consulting, and commission (43.12%), property development (10.78%), and others (10.87%).

Revenue in FY23 and FY22 was Rs. 681.59 crore and Rs. 544.04 crore, respectively, representing a 25.28% increase. Similarly, there is a 49% increase to Rs. 35.52 crore from Rs. 23.69 crore in net profits.

OPM and NPM stood at 11.51% and 5.21% in FY23. The expansion of sales caused a slight increase in the margin.

RoE and RoCE in FY23 stood at 13% and 14.34%, respectively. Both metrics have improved year over year, but the metric levels are stabilizing and improving compared to pandemic levels.

The debt is at an all-time low of 0.38 in FY23, and the debt-to-equity ratio has improved. Although the interest cost is on the rise, the interest coverage ratio has been steadily improving and is currently 2.46 times.

List of Best Microcap Stocks Under Rs 1000

We will look at some best microcap stocks under Rs 1000.

Conclusion

As we near the conclusion of Best Microcap Stocks under Rs 1000, the companies that we looked into need a broader analysis to make any decisions. Companies start small with the help of the industry, aided by the government, and community-based ecosystems of business help them thrive. What are your views on these companies? Which company has more potential? Let us know in the comment section below.

Written by Santhosh

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