Small Cap Stocks Under Rs 20: Small-cap stocks are considered to be the shooting stars in Investments. They are risky but offer an investment journey filled with upside potential and huge growth prospects.  Stocks that fall under small caps have a huge potential to become a multi-bagger in the long run, generating amazing returns for the shareholders.

In this article, we will look at small cap stocks under Rs 20 and analyze their future potential.

Small Cap Stocks Under Rs 20

Small Cap Stocks Under Rs 20 #1 – Filatex Fashion

Best Small Cap Stocks Under Rs 20 - Filatex Fashion Logo

Filatex Fashion Ltd was incorporated in the year 1995 having its headquarters in Hyderabad. It is one of the oldest in the industry to manufacture socks. The company is into the manufacturing of socks and is specialized in manufacturing high-quality cotton woollen and silk socks meeting international standards.

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The company has two main brands Smartmna and Tuscany. It maintains high-tech quality with zero rejection rates. As the company has a legacy of providing its products and services to top clients such as FILA, Sergio Tacchini, Adidas, and many more. The Income statement of the company highlights Revenue increased from 115 crores in FY 2022 to 164 Crores in FY 2023, an increase of 42.31%.

The Net profit of the company is quite interesting with an upward trend from being 3 crores in FY 2022 to 12 crores in FY 2023. The 3 years average of Return on Equity(ROE) is at 4.87%. And Return on Capital Employed (ROCE) is at 5.84%. The Promoter’s shareholding in the company accounts for a total of 24.81% as of FY 2023 which was low at 1.57% in FY 2022.

This action of promoters signifies trust and confidence in their business. The remaining holdings are with the public accounting for 75.19% as of 2023.

Particulars Amount Particulars Amount
CMP₹12.00Market Cap (Crores)₹2,953.00
EPS₹0.96Stock P/E253
ROE15.50%ROCE15.80%
Promoters Holding 24.81%FII Holding 0.00%
Debt to Equity 0.03P/B0.89
Operating Profit Margin11.06%Net profit margin7.10%

Small Cap Stocks Under Rs 20 #2 – Syncom Formulations (India)

Best Small Cap Stocks Under Rs 20 - 
Syncom Formulations (India) Logo

Syncom Formulations (India) which was incorporated in the year 1995 is a company which is into manufactures different ranges of products related to healthcare. The company being a global pharmaceutical is also a leading exporter that exports its product to more than 25 countries. Syncome has more than 400 products that are registered.

The company along with manufacturing, ensures to market its 300 and more pharmaceutical products. It is known for maintaining high-quality standards using the latest production machinery. The company uses various competitive strategies to mention a few, Promptness in making delivery and maintaining consistency in terms of performance and service.

The financials of the company concerning revenue stood at 224.25 crores in FY 2023 which was at 219.66 crores in FY 2022, showing a rise of 2.09%.The Net profits of the company in FY 2023 were at 20.07 crores which were 19.79 crores in FY 2022, showing an increase of 1.42%. On an average of 3 years, the company’s Return on Equity(ROE) is at 8.87%. The Return on Capital Employed(ROCE) is at 10.91%.

The Promoter’s shareholding in the company accounts for a total of 50.57% in FY 2023. The remaining holdings are with the public accounting for 49.43% as of 2023.

Particulars Amount Particulars Amount
CMP₹13.00Market Cap (Crores)₹1463.00
EPS₹0.25Stock P/E62.28
ROE8.42%ROCE9.70%
Promoters Holding 50.57%FII Holding 0.00%
Debt to Equity 0.3P/B4.63
Operating Profit Margin8.15%Net profit margin9.60%

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Small Cap Stocks Under Rs 20 #3 – Brightcom Group

Brightcom Group Logo

Brightcom Group was established in the year 2010, which provides digital marketing solutions to different businesses, agencies as well as to online publishers. The company acts as a bridge between Advertisers to connect with its audience by delivering proper and well-structured messages to the right customers. The company’s presence can be seen across 24 different countries worldwide.

Brightcom Group includes a wide range of services in its portfolio. They can be categorized into three main divisions which include Digital Advertising, Software Development, and Future Technologies. One of the significant turning points in Brightcom Group was in 2016 when Brightcom Group was ranked 4 in the video seller trust index.

In 2021 when it was recognized as the “Biggest Value Gainer” by Burgundy Private Huran India list. The revenue from operations of the company in FY 2023 increased by 47.36% reaching 7397 Crores, from 5020 crores in FY 2022. The Net profits of the company have increased from 912 crores in FY 2022 to 1371 crores in FY 2023. This is showing Year on year (YOY) growth of 50.32%

The Return on Equity (ROE) on an average of 3 years is high at 17.43%. Return on capital Employed stood at 23.93% which looks impressive. The Promoters have 18.38% holdings in the company and holdings held with the public are high with 72.01% . Foreign Institutional Investors(FII) have 9.50%. And the Domestic institutional investors (DII) with 0.11% as of FY 2023

Particulars Amount Particulars Amount
CMP₹17.00Market Cap (Crores)₹3941
EPS₹7.01Stock P/E2.85
ROE22.30%ROCE30.90%
Promoters Holding 18.38%FII Holding 9.50%
Debt to Equity 0P/B0.53
Operating Profit Margin26.37%Net profit margin19.02%

Small Cap Stocks Under Rs 20 #4 – Jaiprakash Power Ventures

Best Small Cap Stocks Under Rs 20 - Jaiprakash Power Ventures Ltd Logo

Jaiprakash Power Ventures Ltd was incorporated in the year 1994, a company that mainly operates in coal mining, grinding of cement, and sand mining, it also deals with the production of thermal as well as hydroelectric electricity to earn its revenue. The company operates a 400 MW hydropower station in the state of Uttarakhand.

The company, increasing its strengths, has also constructed 300 MW Baspa II. In Himachal Pradesh, it has constructed a 1000 MW karcham Wangtoo plant. As a part of their future plans, they have been constructing 3200 MW projects in Arunachal Pradesh and 720 MW projects in the state of Meghalaya.

The revenue of the company increased by 25.13% in the FY 2023, from 4625 crores in FY 2022 to reach 5787 crores in FY 2023. The Net profit of the company as of FY 2023 was 55 crores and in FY 2022 the company reported a net profit was 107 crores. But, while looking at the TTM, the net profit stood at 389 crores.

The main reason behind this increase in net profits is due to the high sale of power which increased revenue generation, Secondly decrease in the debt portion that resulted in reducing the cash outflow towards interest payments and lastly due to the disinvestment plans made by the company related to Nigrie Cement.

The Return on equity on a 3-year average is at 0.93% and the Return on capital employed is 4.37%. The promoter’s holdings in the company account for 24.00%, with public holdings of up to 49.73%.Followed by Domestic institutional holdings(DII) with 21.62%.Foreign direct investment (FII) has 4.65% of holdings in the company.

Particulars Amount Particulars Amount
CMP₹16.80Market Cap (Crores)₹11,602
EPS₹0.71Stock P/E23.85
ROE0.93%ROCE4.37%
Promoters Holding 24.00%FII Holding 4.65%
Debt to Equity 0.47P/B1.11
Operating Profit Margin13.57%Net profit margin0.96%

Small Cap Stocks Under Rs 20 #5 – GVK Power & Infrastructure

GVK Power & Infrastructure Ltd Logo

GVK Power & Infrastructure Ltd is a company that is mainly engaged in providing services such as operation, maintenance, consultancy as well as incidental services. These services are rendered to the owners having their businesses in power plants, airports, and infrastructure. The company has its markets serving local, national, and even international.

This was the first company to set up an IPP and six-lane road project. Currently, It has over 1562 MW cumulative capacity. Recently, It has won the mandate which allows them to build India’s first  Greenfield airport.

As a part of its expansion, GVK Power & Infrastructure Ltd is undergoing projects in various states in India. To mention a few 330 MW Hydroelectric projects in Uttarakhand and 540 MW thermal power projects in Punjab. The Income statement of the company about revenue from operations saw a huge rise of 147% in FY 2023, from being 858 crores in 2022 to making 2120 crores in FY 2023.

The Net profits of the company increased from 2636 crores to 3071 crores in FY 2023 compared to FY 2022 resulting in a rise of 16.05%. The key reason behind the surge in revenue is due to the contribution from the other income which includes interest from bank deposits. Secondly, the sale of assets made by the company.

On an average of 3 years Return on equity(ROE) of the company is high at 253.84%. Return on capital employed (ROCE) is low at 3.48% due to high levels of debt. The promoters have a strong holding of 54.25% followed by Public with 44.90%. Foreign institutional investors(FII) and Domestic Institutional investors have 0.36% and 0.48% respectively.

The promoters of the company have maintained consistency in their holdings without an increase or decrease in the stake.

Particulars Amount Particulars Amount
CMP₹11.15Market Cap (Crores)₹2184
EPS₹18.90Stock P/E25.61
ROE-0.81%ROCE7.90%
Promoters Holding 54.25%FII Holding 0.36%
Debt to Equity 5.98Book value -6.14
Operating Profit Margin73.31%Net profit margin39.46%

List of other small cap stocks under Rs 20

Company CMPMarket cap (In Crores)
Unitech Ltd₹18.31₹4,790.45
Dish TV India Ltd₹19.93₹3,669.62
Steel Exchange India Ltd₹16.90₹2,005.41
Vikas Lifecare Ltd₹7.10₹1,098.15
FCS Sotware Solutions Ltd₹6.42₹1,097.53
Raj Rayan Industries Ltd₹19.40₹1,078.80
Rattan India Power Ltd₹10.71₹5751.38
GTL Infrastructure Ltd₹2.04₹2612.63

Conclusion

Here we conclude this article on Best Small Cap Stocks Under Rs 20 with it’s list and functions. In this article we have learned about five different small-cap stocks that are priced below 20. The company’s operations and Fundamentals were the main focus. As these stocks fall under Small Cap, the risk is quite high.

Hence in-depth analysis of the companies is required to understand risk and return possibility before making Investments. Would you risk your money in a high-growth small cap? Please let us know in the comments below.

Written by Nishanth P

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