Small-cap stocks are companies with a market capitalization of less than ₹16,800 crore. 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 multi-bagger returns in 3 months.
Oriental Rail Infrastructure Ltd
Oriental Rail Infrastructure Ltd is a company that deals in timber wood and its products, as well as producing, purchasing, and selling all types of Recron, Seat & Berth, and Compreg Boards.
The company’s share price increased by 204 percent in the last three months and 300 percent in the last year. For example, if an investor invested Rs 1 lakh three months ago, the current value would be 3.04 lakh.
Looking at the Oriental Rail Infrastructure Ltd financials, the net revenue increased by 96% YoY, from ₹58.29 crore in Q2FY23 to ₹114.76 crore in Q2FY24. Net profit of the company rose by 39% YoY, from ₹5.49 crores in Q2FY23 to ₹7.68 crores in Q2FY24.
Oriental Rail Infrastructure Ltd is a small-cap company with a market capitalization of Rs 1,470 crores. The promoter owns 58 percent of the company, while the general public owns 42 percent.
On Saturday in the special trading session, the share price of the company closed up 1% at ₹275.25 per share from its previous close of ₹272.50.
Cupid Ltd
Cupid Limited, an India-based condom manufacturer, was founded in 1993. The company sells, markets, and manufactures rubber contraceptives, related prophylactic products, water-based lubricant jelly, and in vitro diagnostics (IVD) kits.
The multi-bagger company’s share price rose by 350 percent in the last three months and 597 percent in the last year. For Instance, if an investor invested Rs 1 Lakh three months ago the current value of the investment would be 4.50 Lakhs.
According to the company’s financials, net revenue fell by 21% YoY, from ₹46.21 crore in Q2FY23 to ₹10,838 crore in Q2FY24. In addition, their net profit dropped by 40% YoY, from ₹8.58 crores in Q2FY23 to ₹5.12 crores in Q2FY24.
Cupid Ltd has a low debt-to-equity ratio of 0.04, with a dividend yield of 2 percent, a return on equity of 20 percent, a return on capital employed of 26 percent, and a net profit margin of 20 percent.
The company Cupid Ltd is a small-cap with a market capitalization of ₹2,480 crores, the share price of the company closed 5% upper circuit at ₹1,866.60 per share from its previous close of ₹1,777.75 on Saturday.
Veritas (India) Ltd
Veritas (India) Limited (VIL), previously known as Duroflex Engineering, was founded in 1985 and is headquartered in Mumbai. The company focuses on chemical trading and distribution, logistics, software development, and power generation (wind energy). The company has set up overseas subsidiaries and offices.
Veritas India Ltd gave a multi-bagger return of 125% in the last three months and 90% in the last year. For instance, if an investor invested ₹1 Lakh three months ago the current value of the investment would be ₹2.25 Lakhs.
Net revenue of Veritas India Ltd increased by 74% YoY, from ₹540 crore in Q2FY23 to ₹941 crore in Q2FY24. Net profit of the company rose by 75% YoY, from ₹24 crores in Q2FY23 to ₹42 crores in Q2FY24.
The company has a low price-to-earnings ratio of 11 compared to its competitors, with a low debt-to-equity ratio of 0.10, and also the company has a low price-to-book value ratio of 0.57.
Veritas India Ltd has a market capitalization of ₹1,350 crores, on Saturday’s special trading session the share price closed at 2% upper circuit at ₹514.80 per share from its previous close of ₹504.75.
Written by Sriram KV
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