Best Microcap Stocks Under Rs 200: Great Businesses begin small and take advantage of opportunities to expand quickly. Every business aspires to be the greatest among its competitors. Their growth and profitability reflect on their stocks too. Likewise, we can take an opportunity when we see deemed.
In this article, we will take a look at some of the Microcap stocks under Rs 200 from various sectors and analyze their business & financials.
5 Best Microcap Stocks Under Rs 200
1. Tourism Finance Corporation of India Ltd
Travelling to new places and taking a break from our routines are refreshing. To explore a place, one must engage in specific activities, which generate revenue. To promote and advance tourism, we will analyse a business that deals in financing the travel and tourism sector. They identify as the Tourism Finance Corporation Of India.
The company was founded in 1989, and its main goals were to provide lending and consulting services to the travel and tourism sector.
Some of the most prestigious hotels in India, including Taj Resorts in Kerala and Goa, Umaid Bhavan Palace, and Palace on Wheels, have benefited from the active support of TFCI.
The state tourism offices of Gujarat, Madhya Pradesh, Jharkhand, Chhattisgarh, Himachal Pradesh, Delhi, Pondicherry, and Tamil Nadu have benefited from the advisory services provided by TFCI.
TFCI offers business consulting and knowledge sharing in the areas of market potential, project viability, and area potential.
The company’s primary line of business is lending, and as of June 30, 2023, its segments include hotels (82%), social infrastructure (2%), NBFCs (2%), real estate (5%), manufacturing (7%), and other tourism projects (2%).
As a result of people starting to travel while bored during lockdowns and the tourism industry recovering from its Covid lows, revenge tourism has emerged. From $28.9 billion in 2018 to $50.9 billion in 2030, the Indian tourism industry is expected to grow at a CAGR of 5.27%. Compared to Rs.254.19 cr in FY22, the company reported Rs.231.45 cr in FY23, a decrease of 8.9%.
Because interest costs were lower and expenses continued to rise, net profits increased from Rs. 85.32 crore in FY22 to Rs. 87.95 crore in FY23. Their Net NPA in FY23 is 2.98%, up from 0.37% in FY22, and Expected Credit Loss has already been recorded in the books.
|CMP||Rs.106.70||Market Cap (Cr.)||Rs.964|
|Promoter Holding||17.96%||FII Holding||13.01%|
|Debt to Equity||0.98||Price to Book Value||0.93|
|Net Profit Margin||38%||Operating Profit Margin||87.03%|
It started with the name as Hindustan Seals Ltd., and the business was founded in 1984. Manaksia have been operating their businesses to manufacture steel, iron, and aluminum packaging products.
With subsidiaries in Nigeria and Ghana, their business is diverse and includes the sale of goods in ROPP (Roll on Pilfer Proof) caps for wines, pharmaceuticals, and beverages, galvanized sheets, metal color-coated sheets and coils, aluminum coils, and packaging paper for corrugated boxes.
Construction sheets account for 74% of Manaksia’s revenue, followed by packaging paper (26%), and metal packaging business (35% to 40%) from a Nigerian subsidiary.
With the growing demand for online delivery in the paper segment, the company hopes to grow its customer base and boost revenue.
The Nigerian economy and population are expanding, which will help the business expand its product line and distribution system.
Its subsidiary is anticipated to launch long-closure caps in the metal packaging market for alcoholic beverages.
With a flat line of 0.74%, the company’s earnings in FY23 were Rs. 1,165.45 cr as opposed to Rs. 1,174.09 cr. A flat revenue line is a result of rising global market challenges as well as high inflation in Nigeria, where the majority of the workforce is employed.
The Operating Margin’s compression of 6.8% and consistent expense growth have had a long-lasting impact on net profit, which decreased to Rs. 107.79 cr in FY23 from Rs. 186.22 cr in FY22.
|CMP||Rs.139.7||Market Cap (Cr.)||Rs 903.71|
|Promoter Holding||74.93%||FII Holding||1.70%|
|Debt to Equity||0.05||Price to Book Value||0.84|
|Net Profit Margin||9.25%||Operating Profit Margin||12.54%|
3. Menon Bearings
Have you ever driven a car that felt particularly smooth? Menon Bearings Limited, a company that manufactures bearings for the automotive industry, will be looked into.
The business was established in 1991 and is involved in the production of bushes and bearings for heavy-duty engines, long-haul trucks, and multi-axle vehicles.
In FY23, they made 70% of their revenue from domestic sales and 30% from exports; however, there was a decline in export revenue from 34% in FY22 to 30% in FY23. The primary source of revenue for them is Auto Components.
Up until FY25, Menon Bearings plans to grow by investing Rs. 30cr in capital expenditures for product diversification, of which 40% will go to the Bi-Metal Division and 60% to the Alkop Division.
The company’s revenue increased by 11% to Rs. 216.94 cr in FY23 from Rs. 195.40 cr in FY22. The massive volume increase in automobile sales was the cause of the growth.
The Net Profit increased by 32.9% from Rs.24.53 cr in FY22 to Rs.32.6 cr in FY23. The company’s profitability has increased thanks to both margin expansion and rising product prices.
|CMP||Rs.147||Market Cap (Cr.)||Rs.837.24|
|Promoter Holding||70.18%||Public Holding||29.25%|
|Debt to Equity||0.11||Price to Book Value||5.97|
|Net Profit Margin||14.86%||Operating Profit Margin||24.08%|
4. Kothari Petrochemicals
Kothari Petrochemicals was founded in 1989 and specializes in Polyisobutylene (PIB), a synthetic rubber or polymer composed of a lengthy chain of identical molecules.
PIB is utilized in lubricants, adhesives, personal hygiene products, and dispersants, among other applications. PIB is utilized in the automotive industry as both a fuel and lubricant additive.
They primarily manufacture and sell petrochemical goods, which are in demand by a number of sectors. They are in the adhesive and sealant market. As of FY22–23, they accounted for 91% of the Indian PIB market share. They are now seeking to expand their customer base beyond India.
By investing Rs. 1.92 crore in FY23, the company hopes to grow its business and diversify its product line through the securing of patents.
Revenues increased by a healthy 26.37% in FY23 to Rs. 482.15 cr from Rs. 381.53 cr in FY22. The rise in sales was caused by both an increase in volume sales and a rise in sales prices as a result of increased raw material costs.
Net profits increased 19.12% sequentially from Rs. 32.89 cr in FY22 to Rs. 39.18 cr in FY23. Sales spiked in FY23, which drove up profits but operating margins were lower than in FY22.
|CMP||Rs.140||Market Cap (Cr.)||Rs.835.03|
|Promoter Holding||70.96%||Public Holding||28.93%|
|Debt to Equity||0.12||Price to Book Value||4.03|
|Net Profit Margin||8.13%||Operating Profit Margin||11.80%|
5. Indo Amines
The company was established in 1994 and produces active pharmaceutical ingredients (API) as well as fine, performance, specialty, perfumery, and chemical development, manufacturing, and supply.
Industries including road construction, agrochemicals, fertilizers, petrochemicals, fragrance chemicals, and pharmaceuticals can all benefit from these chemicals.
Indo Amines primarily earns revenue from one segment a regional business that manufactures and specializes in chemicals.
Indo Amines anticipates growing its market share by investing more in research and development to launch new chemical product lines. On the other hand, increased domestic market competition from overseas markets may have an effect on the margins for sale prices.
The company’s revenue increased by 20.22% to Rs. 945.01 cr in FY23 from Rs. 786.04 cr in FY22. The market’s growing desire for its products is the cause of the growth.
Net profits increased by 77.35% from Rs. 23.05 cr in FY22 to Rs. 40.88 cr in FY23. Since raw materials account for a sizable portion of expenses, the operating margin’s volatility over time and the growth of expenses at a pace equal to that of sales raise concerns about the possibility of a margin expansion.
|CMP||Rs.114.95||Market Cap (Cr.)||Rs.810.90|
|Promoter Holding||67.37%||Public Holding||32.63%|
|Debt to Equity||1.04||Price to Book Value||3.43|
|Net Profit Margin||4.33%||Operating Profit Margin||9.21%|
List of Best Microcap Stocks Under Rs 200
Take a look at some of the Microcap Stocks under Rs 200
|Scrip Name||Industry||CMP||Market Cap (Cr.)|
|Tourism Finance Corporation of India||Finance Term Lending||Rs.106.70||Rs.964|
|The State Trading Corporation of India||Trading||Rs.150.15||Rs.900.90|
|Entertainment Network (India) Ltd.||TV Broadcasting and Software Production||Rs.187.05||Rs.889.29|
|Tribhovandas Bhimji Zaveri Ltd.||Diamond and Jewellery||Rs.127.55||Rs.851.15|
As we finish looking into some of the companies in the Best Microcap stocks under Rs 200, the above companies require further analysis deep into the core. There might be potential in it or highly unlikely it would be a multi-bagger in the future. What is your view on these companies? Do these companies hold more potential? Let us know your views in the comment section below.
Written by Santhosh
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