Best Microcap Stocks Under Rs 50: Emerging microcap stocks are like rockets which can give multi-bagger returns to their shareholders. They are small in size and any growth in profits happens on a low base, taking their stock prices to new highs.

However, it is difficult to spot emerging microcap stocks from such a large pool of companies. In this article, we’ll present you the best microcap stocks under Rs 50 which you can to your watchlist.

Best Microcap Stocks Under Rs 50

For our article on ‘best microcap stocks under Rs 50’, we’ll learn about 5 different companies, studying their business models, key metrics, strengths and any recent developments. Later, a list puts together more stocks and a summary concludes the article. So without further ado, let us jump in.

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Best Microcap Stocks Under Rs 50 #1 – Orient Paper & Industries

CK Birla group
ParticularsAmountParticularsAmount
CMP ₹48Market Cap (Cr.)₹1,039.71
EPS₹5Stock P/E8.05
RoE6%RoCE8%
Promoter Holding39%Book Value₹71
Debt to Equity0.18Price to Book Value0.61
Net Profit Margin9.5%Operating Margin17.2%

Part of C.K. Birla Group, Orient Paper & Industries Ltd is India’s largest tissue paper manufacturing and exporting company. It is engaged in the manufacturing of paper and paper-based products for various end applications.

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Orient Paper makes cartridge paper, drawing paper, cup stock, MF cover paper, pulpboard, HRT towel, ice cream paper, and more. It owns 1 manufacturing plant and 5 offices. Its products are supplied to 21 states and 4 union territories across India. 

Furthermore, the paper producer has a global presence with 11.3% of its income coming from customers located in 8 different countries across the globe.

Along with the paper & tissue business, Orient also has a chemicals division under which it manufactures caustic soda. The paper & tissue division and chemicals division accounted for 81.71% and 17.37% of the total revenue in FY23 respectively.

The microcap stock under Rs 50 presently trades at a P/E of 8.05 giving a market capitalization of Rs 1,039.71 crore to the company. Orient earned a net profit of Rs 99 crore on sales of Rs 943 crore. 

Best Microcap Stocks Under Rs 50 #2 – XT Global Infotech

Best Microcap Stocks Under Rs 50 - XT Global Logo
ParticularsAmountParticularsAmount
CMP ₹40Market Cap (Cr.)₹534.53
EPS₹1Stock P/E50.61
RoE11%RoCE13%
Promoter Holding63%Book Value₹12
Debt to Equity0.23Price to Book Value3.64
Net Profit Margin6.5%Operating Margin10.1%

Founded 25 years ago in 1998, XT Global Infotech is one of the leading providers of information technology, business process outsourcing, and consulting services. 

XT Global offers a broad range of solutions and services such as Oracle Cloud, Oracle integration, Oracle analytics, application transformation management, cloud & infrastructure, AP automation, digital business services, and more.

The net profit of the technology company increased fourfold from Rs 4 crore in FY20 to Rs 16 crore in FY23. During this period, it reported profits consistently. Similarly, its sales increased from Rs 195 crore in FY20 to Rs 242 crore in FY23.

As a technology business, it trades at a slightly higher P/B ratio of 3.65 and a P/E ratio of 50.61. XT Global Infotech has a high promoter holding of 62.8% and is currently valued at Rs 534.53 crore.

Best Microcap Stocks Under Rs 50 #3 – BMW Industries

BMWIL Industries Logo
ParticularsAmountParticularsAmount
CMP ₹46.52Market Cap (Cr.)₹1,047.55
EPS₹2Stock P/E17.05
RoE9%RoCE12%
Promoter Holding74%Book Value₹27
Debt to Equity0.39Price to Book Value1.53
Net Profit Margin9.7%Operating Margin23.1%

BMW Industries was started in 1970 as the first tube mill company in Kolkata. It started producing lighting poles soon. Over the years, it has grown into a leading steel products player in the nation.

It owns five manufacturing facilities across Howrah and Jamshedpur which churn out TMT, structural, poles, low-diameter pipes, HR & CR coils, speciality flats, high-diameter pipes, and more.

It has well-established partnerships with India’s two steel giants: Tata Steel Limited (TSL) and Steel Authority of India Limited (SAIL). BMW Industries works alongside them in joint ventures and takes projects from them.

It has a total installed capacity of 5,72,000 tonnes per annum. It has a large order from Tata Steel to manufacture and supply 3,00,000 MTPA TMT rebars till 2025 for which it has invested Rs 400 crore.

As a feather in its cap, this microcap stock under Rs 50 has a high promoter shareholding of 74% highlighting promoters’ belief in the business. It earned a profit of Rs 54 crore in FY23, the largest ever in its history on the sale of Rs 562 crore.

Best Microcap Stocks Under Rs 50 #4 – Virinchi

Best Microcap Stocks Under Rs 50 - virinchi Logo
ParticularsAmountParticularsAmount
CMP ₹39Market Cap (Cr.)₹320
EPS₹2Stock P/E16
RoE3%RoCE8%
Promoter Holding41%Book Value₹48
Debt to Equity0.78Price to Book Value0.83
Net Profit Margin4.1%Operating Margin34.0%

Three decades old, Virinchi is a prominent software products and services company with an international presence. Along with its IT business, it also has a healthcare division under which it operates 3 hospitals with a total capacity of 700 beds.

Talking about its IT products and services portfolio, it offers a Saas loan management platform for NBFCs, data centres & IT services, and UPI-enabled payment & credit services.

Furthermore, as part of its expansion efforts, it is adding 400 more beds to its healthcare division through 2 hospitals. Virinchi has been putting focused efforts behind its ‘vCard’ brand to capture the organised credit market in India.

The diversified services provider has consistently remained profitable over the last ten years. Virinchi earned a net profit of Rs 13 crore in FY23 on the sale of Rs 312 crore. At the current P/E ratio of 16.64, it gives a market capitalization of Rs 320.03 crore to the company. 

Best Microcap Stocks Under Rs 50 #5 – Wardwizard Innovations & Mobility

Ward Wizard Logo
ParticularsAmountParticularsAmount
CMP ₹40Market Cap (Cr.)₹1,047
EPS₹0.4Stock P/E114
RoE13%RoCE18%
Promoter Holding70%Book Value₹3
Debt to Equity0.16Price to Book Value10.90
Net Profit Margin4.0%Operating Margin8.0%

Wardwizard Innovations & Mobility is a microcap electric vehicles (EV) company engaged in the production and sale of electric bikes and scooters through company outlets and a large dealer network.

One of the front runners in India’s EV sector, it launched its first electric bicycle in 2016. In the last seven years, it has grown into a full-fledged EV player with a broad product range from high-speed e-bikes to 3-wheelers.

It has a large production facility of 90,000 sq ft giving it an annual capacity of 1,20,000 units for 2-wheelers and 3-wheelers each. 

It sold 36,500 EVs during FY23 totaling an income of Rs 239 crore and resulting in a net profit of Rs 9 crore. Recently, the EV player also started an in-house batter assembly line with an annual capacity of 1 GWh.

As for its geographical presence, it has a presence in more than 50 cities across 19 states and union territories of the nation through its 750+ dealers, 4 zonal offices and 1 branch office.

List of Top Microcap Stocks Under Rs 50

We are almost at the end of our article on ‘best microcap stocks under Rs 50’. The table below compiles more stocks along with the ones covered above.

Company NameCMPMarket Cap (Cr)Industry
Orient Paper & Industries₹48.95₹1,039.71 Paper & Paper Products
XT Global Infotech₹40.1₹534.53 IT Services
BMW Industries₹46.52₹1,047Steel
Virinchi₹35.2₹320.03 IT Services
Wardwizard Innovations & Mobility₹40.1₹1,047.99 Electric Vehicles
Megasoft₹50₹379IT Services
Pudumjee Paper Products₹49.7₹471.71 Paper & Paper Products
Kothari Sugars & Chemicals₹60₹506Sugar
VIP Clothing₹44₹363Textiles
Manaksia Steels₹43₹279Steel

Conclusion

As we conclude our study of the ‘best microcap stocks under Rs 50’, we can say that companies with higher earnings potential in the future are better placed than their peers. Thus, even if a business is small in size, it can be an attractive proposition if the management is putting sustained efforts towards capacity expansion or newer business lines.

In your opinion, is it a good idea to filter small companies on the basis of their capacity expansion plans? What other factors do you keep in mind while putting money into small companies? How about we continue this conversation in the comments below?

Written By Vikalp Mishra

By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.


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