Identifying hidden gem small-cap stocks with a robust book value exceeding Rs. 1000 crores can be a lucrative strategy for investors seeking growth opportunities. Small-cap stocks, typically characterized by their market capitalization ranging from Rs. 500 crores to Rs. 5,000 crores, often exhibit significant potential for appreciation. These companies, while less covered by analysts and institutional investors, can offer substantial returns as they grow.
The allure of these stocks lies not only in their growth prospects but also in the potential for discovering undervalued businesses that are poised for expansion, making them an attractive option for discerning investors. Before investing in any companies they need to do their own research and need to take decisions based on their risk appetite. Below are some of the Hidden Gem Smallcap stocks with a strong book of more than Rs. 1000 crores.
EMS
EMS Limited is a multi-disciplinary EPC company based in Delhi, specializing in water and wastewater management. Established in 1998, it offers comprehensive turnkey solutions, including engineering, design, construction, and installation of treatment facilities. Its business model focuses on sustainable infrastructure development, catering to urban bodies and government projects across India.
With a market capitalization of Rs. 4,381.38 Crores, the shares of EMS Limited were trading at Rs. 789 per equity share, down 2.27 percent from its previous day’s close price of Rs. 807.30.
Its Revenue from operations grew by 10.42 percent from Rs. 211 Crores in Q2FY24 to Rs. 233 Crores in Q2FY25, accompanied by profits of Rs. 45 Crores to Rs. 50 Crores. The current order book is approximately Rs. 2,345 crore.
Brahmaputra Infrastructure
Brahmaputra Infrastructure Ltd, established in 1998, operates primarily in the engineering, procurement, and construction (EPC) sector, focusing on infrastructure projects such as highways, bridges, airports, and tunnels. The company adopts a project-based business model, leveraging its expertise to secure contracts for large-scale civil construction works, thereby contributing significantly to regional development.
With a market capitalization of Rs. 145.09 Crores, the shares of Brahmaputra Infrastructure Limited were trading at Rs. 50 per equity share, up 6.20 percent from its previous day’s close price of Rs. 47.08.
Its Revenue from operations fell by 46.85 percent from Rs. 60.61 Crores in Q2FY24 to Rs. 32.21 Crores in Q2FY25, accompanied by a profit of Rs. 3.83 Crores to Rs. 0.39 Crores. The order book as of 30th June 2024 was approximately Rs. 1,200 crore.
Gensol Engineering
Gensol Engineering Ltd specializes in renewable energy solutions, primarily focusing on solar energy. The company provides end-to-end Engineering, Procurement, and Construction (EPC) services for solar projects globally. Its business model encompasses project development, operation and maintenance, and consulting services, catering to a diverse clientele in the renewable sector.
With a market capitalization of Rs. 2,783.30 Crores, the shares of Gensol Engineering Limited were trading at Rs. 732.40 per equity share, down 2.28 percent from its previous day’s close price of Rs. 765.45.
Its Revenue from operations increased by 13.44 percent from Rs. 305 Crores in Q2FY24 to Rs. 346 Crores in Q2FY25, accompanied by profits of Rs. 18 Crores to Rs. 23 Crores. The order book as of September 2024 stood at Rs. 3,400 crore.
Written by Santhosh S
