Small-cap stocks are defined as companies with a market capitalization of less than Rs 16800 crores. These companies may not be as well-known as large-cap companies, but they do provide investors with the opportunity to earn higher returns.
Here are three stocks with high returns in 2023.
Remedium Lifecare Ltd
Remedium Lifecare Ltd. was founded in 1988 and is engaged in the trading of pharmaceutical products, including Advanced Pharmaceutical Intermediates.
On Wednesday the share price opened 3.4 percent up to Rs 519.80 from its previous close of Rs 502.60. Remedium Lifecare Ltd has a market capitalization of Rs 1,030 crores.
The share price of the small-cap company rose 1,947 percent in the year to date. For instance, if an investor invested Rs 1 Lakhs year to date the current value would be Rs 20.4 lakhs.
In comparison to its competitors, the company has a low price-to-earnings ratio of 118, a zero debt-to-equity ratio, a 70 percent return on equity, and a 102 percent return on capital employed.
Looking at the company’s financial statements operating revenues rose 195 percent from Rs 158.45 crore in Q2FY23 to Rs 468.57 crore in Q2FY24, Furthermore, net profit increased 198 percent from Rs 2.19 crore to Rs 6.53 crore during the same period.
Jai Balaji Industries Ltd
Jai Balaji Industries Limited is a company that manufactures iron and steel products. Sponge iron, pig iron, ductile iron pipe, ferrochrome, billet, thermo mechanically treated (TMT), coke, and sinter with captive power plant are among the company’s products.
The share price opened 1.6 percent up on Wednesday, at Rs 760, from its previous close of Rs 747.8. The company has a market capitalization of Rs 12,200 crores.
The share price of the small-cap company rose 863 percent in the last six months and 1,246 percent in the year to date. For instance, if an investor invested Rs 1 Lakhs year to date the current value would be Rs 13.4 Lakhs.
The net profit margin is higher than it was in the previous three years. The company’s debt has been reduced, the company has delivered good profit growth of
21.1 percent CAGR over the last 5 years, and promoter holding has increased by 1.29 percent in the most recent quarter.
According to the company’s financial statements, the operating revenues rose 13 percent from Rs 1,369 crore in Q2FY23 to Rs 1,547 crores in Q2FY24, Additionally, net profit increased 861 percent from Rs 21 crore to Rs 202 crore during the same period.
K&R Rail Engineering Ltd
K&R Rail Engineering Limited is a railway construction company based in India. The Company specializes in the turnkey installation of private railway sidings. Engineering, procurement, construction, and commissioning are among the services provided by the company.
On Wednesday the share price closed 0.7 percent up to Rs 700 from its previous close of Rs 695.1. KR Rail Engineering has a market capitalization of Rs 1,480 crores.
The share price of the small-cap company rose 41 percent in the last six months and 969 percent in the year to date. For instance, if an investor invested Rs 1 Lakhs year to date the current value would be Rs 97.9 Lakhs.
The company has a low debt-to-equity ratio of 0.24, a return on equity of 12 percent, a return on capital employed of 10 percent, a good current ratio of 2.34, and a good quick ratio of 2.28.
According to the company’s financial statements, operating revenues fell 18 percent from Rs 163.28 crore in Q1FY24 to Rs 200.10 crore in Q2FY24, while net profit increased 86 percent during the same period, from Rs 5.08 crore to Rs 9.45 crore.
Written by Sriram KV
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