Small-cap stocks are defined as companies having a market capitalization of less than Rs 16800 crores. These companies may not be as well-known as large-cap companies, but they still offer investors the chance to earn larger returns.
Chennai Petroleum Corporation Ltd
Chennai Petroleum Corporation Limited refines crude oil to produce and supply various petroleum products, as well as manufacture and sale of lubricating oil additives.
On Friday the share price closed 0.77 percent up to Rs 690 from its previous close of Rs 684.70. With a market capitalization of Rs 10,310 crores.
The share price of the small-cap company rose 79 percent in the last six months and 225 percent in the year to date. For instance, if an investor invested Rs 1 Lakhs year to date the current value would be Rs 3.25 Lakhs.
Compared to its competitors, the company has a low price-to-earnings ratio of 3.4, a low debt-to-equity ratio of 0.65, a return on equity of 74 percent, a return on capital employed of 44 percent, and an 11 percent dividend yield.
Looking at the company’s financial statements operating revenues fell 12.6 percent from Rs 22,894 crores in Q2FY23 to Rs 20,009 crores in Q2FY24, Furthermore, net profit increased 5835 percent from Rs 20 crores to Rs 1,187 crores during the same period.
Banco Products (India) Ltd
Banco Products (India) Ltd was founded in 1961 and manufactures and sells engine cooling modules and systems for automotive and industrial applications in both domestic and international markets.
The share price of the small-cap company with a market capitalization of Rs 4,100 on Friday closed at 1.50 percent down to Rs 573.25 from its previous close of Rs 582.
Banco Products Limited’s share price has risen 86 percent in six months and 185 percent in the year to date. For instance, if an investor invested Rs 1 Lakhs year to date the current value would be Rs 2.85 Lakhs.
The company has a low price-to-earnings ratio of 14 compared to its peers, also it has a low debt-to-equity ratio of 0.29, with a return on equity of 23 percent and a return on capital employed of 28 percent with a dividend yield of 9.7 percent.
According to the company’s financial statements, the operating revenues rose 15 percent from Rs 627 crores in Q2FY23 to Rs 724 crores in Q2FY24, Additionally, net profit increased 94 percent from Rs 34 crores to Rs 66 crores during the same period.
Gujarat Mineral Development Corporation Ltd
Gujarat Mineral Development Corporation is primarily involved in two industries: mining and power. Lignite, Bauxite, Fluorspar, Multi-Metal, Manganese, Power, Wind, and Solar are among its projects.
On Friday the share price closed 1.06 percent down to Rs 406.70 from its previous close of Rs 411.05. With a market capitalization of Rs 12,900 crores.
Gujarat Mineral Development Corporation Ltd’s share price has risen 152 percent in six months and 167 percent in the year to date. For instance, if an investor invested Rs 1 Lakhs year to date the current value would be Rs 2.67 Lakhs.
The company is debt-free, with a net profit margin of 34 percent, a dividend yield of 9 percent, and returns on equity and capital employed of 22 percent and 31 percent, respectively.
Written by Sriram KV
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