These small-cap stocks have performed well during the recent quarter and given fruitful returns to their investors across the timeline.
Lloyds Engineering Ltd
With a market capitalization of Rs. 4,999.62 cr, the company’s share has been a multi-bagger stock. The company has given a whopping 163 percent returns to its investors in the YTD period.
Since January of this year, if someone had invested 1 lakh rupees in the company, the worth of these shares would be around Rs. 2.6 lakhs now.
Looking at the financials of the company, it had very good Q2 FY24 results. The company has increased its net revenue from 121.78 cr compared to 113.12 cr in the last quarter. The net profit increased to Rs. 18.79 cr during the same period compared to 12.84 cr in the March quarter. YoY the company’s net profit has increased by 149 percent.
Coming into the financials of the company, the Return on Equity (RoE) was increased to 24.09 percent in FY 22-23 compared to 5.11 percent in the last financial year. Return On Capital Employed (RoCE) also increased to 26.84 from 9.77 percent during the same period.
An Indian-based company Lloyds Engineering Ltd, Formerly known as Lloyds Steel Industries Ltd, specializes in the design and manufacturing of heavy equipment machinery and systems for the hydrocarbon sector, oil and gas, steel plants, power plants, nuclear plant boilers, and turnkey projects.
Newgen Software Technologies Ltd
With a market capitalization of Rs. 7,347.48 cr, the small-cap technology company’s shares have given multi-bagger returns to its investors. The company has managed to give 192 percent return in YTD and even in 6 months the company has been able to give 125 percent return, for example if someone had invested 1 lakh rupees in this company in January 2023, then, the worth of these shares would be 2.92 lakh now.
Digging into the financials of the company, the revenue of the company increased to Rs.293 cr in Q2 FY 24 compared to 251 cr during the last quarter. The net profits also increased by Rs. 47.79 cr compared to 30.15 cr during the same period. And the company has increased its net profits by 57.14 percent YoY.
Moving to the important ratios of the company, the Return on Equity (RoE) was at 20.04 percent in FY 22-23 and the Return on Capital Employed was at 24.63 during the same period. And the debt-to-equity ratio of the company was zero, which means the company is debt-free.
South Indian Bank Ltd
South Indian Bank is an Indian-origin company that provides a unified digital transformation platform and specializes in automating the end-to-end process, comprehensively managing content and communication backed by Artificial Intelligence(AI) based cognitive capabilities, governance, and a robust integration ecosystem.
With a capitalization of Rs. 5,058.16 cr, the small-cap banking company has performed well in the recent quarter. In just a time frame of 6 months, the banking stock has given more than 50 percent returns to its investors.
Coming to the recent financials posted by the company, the net revenue increased to Rs. 2,484.48 cr in Q2FY24 compared to 2386.06 in the last quarter. Net profit also increased during the same period by Rs. 274.89 to Rs. 202.58 in the corresponding last quarter. The YoY net profit increased by 23.3 percent. Net Interest Income, the difference between the interest earned and interest given to the depositors, increased by 14% YoY to Rs. 830 cr from Rs. 730 cr in Q2FY23.
Looking at the important ratios of the bank, the Return on Equity ratio was increased to 12.77 percent in FY 22-23 compared to 0.77 percent in FY 21-22, Return on Capital Employed also increased to 14.15 percent from 2.1 percent during the same period. The most important ratio for a Bank is Net Non-Performing Asset (NPA), which shows the proportion of loans or advances that are in default, this decreased to 1.89 from 2.97 during the same time frame.
Another green flag for the bank is the FIIs have been increasing their stake in the company. They have increased 1.4 percent in the recent quarter and a total of 15% is with them according to the latest shareholding pattern.
Headquartered in Thrissur in Kerala, The South Indian Bank Ltd is a major Private sector Bank. As of March 31, 2023, the bank has a network of 942 banking outlets and 1304 ATMs/CRMs spanning 26 states and 4 union territories.
Written By Vaibhav Patil
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