Small-cap stocks represent the market’s most numerous firms. In fact, small-cap companies dominate large- and mid-cap stocks combined. Small-cap stocks offer distinct risks and benefits for investors compared to their bigger counterparts due to their size. As a result, small-cap stocks may have higher-than-average volatility, which is just another way of saying that they undergo fast gains and losses. Investors who can tolerate the ups and downs along the route may be rewarded over time. In the near term, though, certain small-cap stocks could experience big fluctuations and be illiquid, which means they don’t trade as frequently and might be difficult to sell for cash.

The S&P BSE small-cap benchmark index has returned 14% over the year, however, these five firms have outperformed the benchmark by returning 100% over the year.

Here are the 5 small cap stocks which provided Mulitbagger returns:

Mold Tek Technologies Ltd

Mold-Tek Technologies Ltd, earlier known as Mold-Tek Plastics, is one of the leading manufacturers of injection and blow molded plastic items in India with sophisticated in-house toolroom facilities.

In the last year, the company’s share price increased from ₹ 99.50 to ₹ 315 giving multi-bagger returns of 207.47%. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹3.07 lakhs today!

The company has a market capitalization of ₹ 896  crores, Mold Tek Technologies is a small-cap company. It has a return on equity of 28.20 % and the company has zero debt-to-equity ratio as of FY23. It is a high-growth stock and its shares were trading at a price-to-earnings ratio of 30.6, which is higher than the industry average of 26.6. 

In fact, its net profit grew at a CAGR of 42.60 % from ₹ 10 crores in FY20 to ₹ 29 Crores in FY23. 

Anant Raj Industries Ltd(ARIL)

ARIL is involved in the field of real estate development and in the process of building an array of Special Economic Zones (SEZs), IT Parks, Hotels, Commercial Complexes, Malls, Residential / Service apartments, and other infrastructure projects.

In the last year, the company’s share price increased from ₹ 57 to ₹ 143 giving multi-bagger returns of 151.01%. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹2.51 lakhs today!

The company has a market capitalization of ₹ 4,641 crores. It has a return on equity of 5.42 % and the debt-to-equity ratio stood at 0.33  as of FY23. 

In fact, its net profit grew at a CAGR of 108 % from ₹ 16 crores in FY20 to ₹ 144 Crores in FY23. 

Elecon Engineering Company Ltd

The company is engaged in delivering power transmission solutions and material handling equipment. The company caters to the needs of various sectors like steel, fertilizers, cement, coal, lignite, and iron ore mines, sugar, power stations, and port mechanization in India and abroad. They have emerged as the largest gear manufacturing company in Asia.

In the last year, the company’s share price increased from ₹197.95 to ₹554.75 giving multi-bagger returns of 171.01%. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹2.71 lakhs today!

The company has a market capitalization of ₹ 6,219 crore,  a return on equity of 18.56%, and a zero debt-to-equity ratio as of FY23.

The net profit grew at a CAGR of 38.54% from ₹ 88 crores in FY20 to ₹ 234 crores in FY23. 

Ujjivan Financial Services Ltd.

Ujjivan Financial Services was registered with the Reserve Bank of India as an NBFC-MFI under the Non-Banking Financial Company Micro Finance Institution Act to  serve the economically active urban and semi-urban poor. Ujjivan provides a basket of customized products to meet a wide range of customer needs. 

In the last year, the company’s share price increased from ₹ 139.75 to ₹ 336.85, giving multi-bagger returns of 145.43%. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹2.45 lakhs today!

The company has a market capitalization of ₹ 4,100 crores,  a return on equity of 32.1%, and a debt-to-equity ratio that stood at 9.55 as of FY23.

Its net profit grew at a CAGR of 56.3% from ₹298 crores in FY20 to ₹ 1,140 crores in FY23. 

Triveni Turbine Ltd.

Triveni Turbine Ltd. is primarily engaged in the manufacturing and supply of power generation equipment and solutions.

It had been a division of Triveni Engineering & Industries Ltd. since the 1970s and was demerged with effect from October 2010 into a separate entity.

In the last year, the company’s share price increased from ₹ 178.85 to ₹ 399 giving multi-bagger returns of 123%. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹2.23 lakhs today!

The company has a market capitalization of ₹ 12,699 crore,  a return on equity of 25.32%, and a zero debt-to-equity ratio as of FY23.

Its net profit grew at a CAGR of 19.68% from ₹112 crores in FY20 to ₹ 195 crores in FY23. 

Written By Omkar C

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