Best Microcap Stocks Under Rs 500: Investors always look for companies that possess potential. However, it must be noted that such companies can come with substantial risks. Company earnings, sector, position, and business environment matter a lot. In this article, we will take a look at some of the microcap stocks that are priced under Rs 500.

Microcap Stocks Under Rs 500

Here are list of Best Microcap stocks under Rs 500 that are listed in BSE and NSE, we shall take a look at those stocks and analyse

Best Microcap Stocks under Rs 500 #1 – Tinna Rubber and Infrastructure

Tinna Rubber and Infrastructure Under the leadership of Bhupinder Kumar Sekhri, the company was incorporated in 1977 and operated in the rubber industry.

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The company recycles old tires and converts them into rubber and steel, widely used in conveyor belts, road construction, and new tires. Their manufacturing facilities are spread across India, including Haryana, West Bengal, Tamil Nadu, Maharashtra, and Oman.

They manufacture Crumb Rubber Modifier for Bitumen (CRMB), a black-colored glue substance that adheres to tiny rocks and sand to create smooth roads, and High Tensile Crumb for Tires.

In addition to revenue from a single segment, the company takes into account revenue from a variety of industries, including consumer goods like floor mats and gym tiles, industrial uses like manufacturing tires, and infrastructure like roads. Additionally, the thermoplastic elastomer industry produces the materials needed to make auto parts, industrial waste bins, and hoses.

Growing business opportunities and environmental friendliness are two reasons why the recycling industry will continue to grow.

The company is looking to expand its annual capacity for the process of PCR, and they are looking to start a new plant in Panipat for thermoplastic elastomers.

Their revenue in FY23 is Rs.295.43 cr, up from Rs.229.24 cr in FY22, representing a 28.87% increase. The company’s sales are in increasing trend from FY21 to FY23

Net profit was Rs. 21.8 crore in FY23, up from Rs. 16.9 crore in FY22, representing a 29% increase. This expansion is due to an increase in other income and a slight dip in interest costs.

ParticularsAmountParticularsAmount
CMP538.6Market Cap (Cr.)886.79
EPS13.26Stock P/E32.96
RoE25.16%RoCE24.45%
Promoter Holding73.81%Public Holding25.04%
Debt to Equity0.61Price to Book Value6.74
Net Profit Margin7.38%Operating Profit Margin12.58%

Best Microcap Stocks Under Rs 500 #2 – Prakash Pipes 

Ved Prakash Agarwal founded the company in 1981. They produce PVC pipes and fittings such as plumbing, garden, column, and agricultural pipes. They are also involved in the production of packaging.

The states where the company is present are Delhi (27%), Haryana (14%), Punjab & H.P. (4%), Uttar Pradesh, and Uttarakhand (55%). PVC pipes and fittings account for 60% of their revenue mix, with flexible packaging accounting for the remaining 40% in FY23.

The organization intends to expand its PVC plastic pipes and fittings business by utilizing government funding for water management and irrigation projects under initiatives like the PM Jal Jeevan Mission and the PM Awas Yojana.

The flexible packaging industry is a thriving sector in which most businesses aim to boost sales by producing tiny sachets and packages. As these businesses grow in volume, there is scope for generating income.

Prakash Pipes reported revenues of Rs. 709.21 crore in FY23, up from Rs. 616.75 crore in FY22, with a 15% increase. The sales are in an increasing trend from FY19 to FY23.

Net profits increased by 52.33% to Rs. 71.29 crore in FY23 from Rs. 46.80 crore in FY22. However, operating margin expansion is critical to retaining or expanding profitability, and it was growing until the current year’s dip. Profit on Sale of Fixed Assets: 16 crore caused a significant increase in net profits for FY23.

ParticularsAmountParticularsAmount
CMP409.85Market Cap (Cr.)995.24
EPS27.09Stock P/E14.46
RoE27.74%RoCE35.07%
Promoter Holding44.27%Public Holding55.44%
Debt to Equity0.03Price to Book Value3.15
Net Profit Margin10.05%Operating Profit Margin11.74%

Best Microcap Stocks Under Rs 500 #3 – Vinyl Chemicals (India)

The company was founded in 1986. They are into trading vinyl acetate monomers (VAM) in India. They buy the chemicals from other countries and resell them in India at a profit.

Vinyl Chemical’s revenue is concentrated solely on trading chemicals such as vinyl acetate monomer (VAM). VAM is an ingredient in glue and paint.

Vinyl Chemicals manufactured VAM in its Maharashtra plant until its de-merger from Pidilite Industries Ltd. (PIL) and their promoter. The plant was transferred to PIL for strategic reasons.

In FY23, the company reported a net revenue of Rs. 1,012.50 crore, up from Rs. 865.07 crore in FY22. Discounts were Rs. 49.97 crore as opposed to Rs. 41 crore, a 21.8% increase as compared to a 16.80% increase in revenue from operations. However, sales have been on an increasing trend since the COVID period.

Net profit was Rs. 35.65 crore in FY23, up from Rs. 34.86 crore in FY22, a 2.27% increase. Net profit margin is in an increasing trend from FY19 to FY22 until FY23, with a slight dip to 3.52% from 4.03% in FY22.

ParticularsAmountParticularsAmount
CMP412.8Market Cap (Cr.)757.41
EPS15.39Stock P/E28.69
RoE34.06%RoCE46.41%
Promoter Holding50.41%Public Holding49.59%
Debt to Equity0Price to Book Value6.93
Net Profit Margin3.52%Operating Profit Margin4.61%

Best Microcap Stocks under Rs 500 #4 – Windlas Biotech 

A pharmaceutical company was incorporated in 2001. They manufacture drugs for pharmaceutical companies known as the Contract Development and Manufacturing Organization (CDMO). 

The CDMO helps to manufacture drugs at low cost and specializes in generic medicines. All pharma companies do not possess all the facilities, expertise, and resources.

Windlas Biotech earns its revenue from the pharmaceutical segment, which is further diversified revenue breakup from Generic formulations CDMO – 78%, Trade generics, and institutional – 18%, and remaining exports – 4% in FY23.

The company is actively investing in research and development, from 6.5 crore in FY22 to 8.9 crore in FY23. They are consistent in their R&D expenditures, and they are into the development of innovative products such as chocolate-flavored chewable tablets, dispersible tablets, and sustained-release tablets.

Revenues were Rs. 513.08 crore in FY23 as against Rs. 465.93 crore in FY22, indicating an increase of 10.12%. This growth is attributed to a spike in trade in generics, which rose 49%; generic CDMO grew by 5%; and exports dipped 5% compared to the previous year.

Net profits grew to Rs. 42.63 crore in FY23 as compared to Rs. 38.09 crore in FY22, indicating an increase of 12%. The operating margins have increased from FY22, and there has been a steady increase in the net profit margin as well.

ParticularsAmountParticularsAmount
CMP417.45Market Cap (Cr.)867.92
EPS21.58Stock P/E16.08
RoE10.76%RoCE14.39%
Promoter Holding62.82%Public Holding24.86%
Debt to Equity0Price to Book Value1.77
Net Profit Margin8.31%Operating Profit Margin11.73%

Best Microcap Stocks under Rs 500 #5 – Associated Alcohols and Breweries

Associated Alcohols and Breweries was incorporated in 1989 and conducts business in the liquor industry. It was started by Bhagwati Prasad Kedia  The manufacturing plant for alcoholic beverages is one of the largest in India, situated in Indore.

The company has expanded its product segment ranges, such as premium extra-neutral alcohol, Indian-Made Indian Liquor (IMIL), Indian-Made Foreign Liquor (IMFL), and Rectified Spirit.

The segments are currently potable alcohols in FY23, and they are still in the project stage with ethanol, which would be another revenue stream expected to start in Q2 FY2024.

The company has expanded its capacity in the Extra Neutral Alcohol Category, which has helped to bring down the cost per liter as compared to industry greenfield benchmarks.

The company’s revenues were Rs. 700.77 crore in FY23 as compared to Rs. 512.59 crore in FY22, an increase of 36.71%. There is an increasing trend in revenues from FY19 to FY23, with a dip in FY21 due to COVID lockdowns. The revenues are growing at a CAGR of 11.99% from FY19 to FY23.

Net profits grew to Rs. 41.56 crore in FY23 as compared to Rs. 60.81 crore in FY22, a decrease of 31.66%. The de-growth was mainly due to an increase in the cost of raw materials, supply chain disruptions, and other fixed costs, which led to margin compression.

ParticularsAmountParticularsAmount
CMP465Market Cap (Cr.)843.3
EPS22.4Stock P/E21.64
RoE12.29%RoCE14.67%
Promoter Holding58.67Public Holding41%
Debt to Equity0.26Price to Book Value2.33
Net Profit Margin5.93%Operating Profit Margin8.90%

List of Microcap Stocks Under Rs 500

Here we have some of the microcap stocks under Rs 500.

ParticularsIndustryCMPMCap (Cr.)
Tinna Rubber and Infrastructure Ltd.Chemicals545886.79
Prakash PipesPlastic Products406.35995.24
Vinyl Chemicals (India) Ltd.Trading412.8757.41
Windlas BiotechPharmaceuticals & Drugs416.2867.92
Associated Alcohols & BreweriesBreweries & Distilleries463.8843.3
Rushil DecorPaper & Paper Products350.15929.36
Sakar Healthcare Ltd.Pharmaceuticals & Drugs357.2762.62
Sukhjit Starch & Chemicals Ltd.Consumer Food421.60662.69
E2E Networks Ltd.IT - Hardware456.55661
Cupid Ltd.Household Products & Personal Products495.15660.43

Conclusion

As we conclude our Best Microcap stocks under Rs 500, we have looked at some companies that have potential. The companies that are looked at are to be analyzed further to draw conclusions. Knowing about business before buying stocks is crucial. What is your view of these companies? Is there any potential turnaround with these companies? Let us know your views in the comment section below.

Written by Santhosh

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