The small-cap universe is a treasure trove of bargains— provided you can spot them. Money Today ties up with Trisys Research to identify stocks that aren’t in the limelight, but have the potential to give high returns. Between the four stocks listed on this page and the one that Mudar Patherya analyses in detail in his column Under the Radar, we track five small-cap stocks in every issue.
| GAYATRI PROJECTS | |||||||||
Core business: Civil works, including construction of highways, bridges, airports, ports and dams For current stock prices and more details, click here |
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| FACOR ALLOYS | |||||||||
Core business: Production of ferro chrome, a major raw material in the stainless steel industry For current stock prices and more details, click here |
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| NECTAR LIFESCIENCES | |||||||||
Core business: Integrated pharma manufacturer specialising in cephalosporin APIs, finished dose forms |
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| NEHA INTERNATIONAL | |||||||||
Core business: Cultivation, marketing and export of roses |
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One of the oldest construction companies in India, it has an order book of Rs 3,900 crore. Net sales grew by an impressive 50% (YoY) in 2007-8. With around 95% of its revenues comprising government contracts, it benefited from the government’s thrust on infrastructure, executing 15 big projects in 2007.
A part of the Facor Group, the company posted an impressive performance in 2007-8. A 38% increase in top line was accompanied by more than 300% increase in its bottom line compared to 2006-7. A high operating profit margin of 33.6% (11.4%) was due to availability of raw material at discounted prices from its group company.
An eight-fold increase in the Cefaxime capacity—from 3 TPA to 25 TPA—has made Nectar the product leader in Asia. The commissioning of a state-of-the-art, dedicated empty hard gelatin capsule manufacturing facility, in line with US FDA and EDQM benchmarks, resulted in an 86% YoY growth in nine month revenues (April-December 2007).
A floriculture company with four hectares of cultivable land in Pune. Extended operations to Ethiopia by acquiring three companies in February 2008. These companies produce some of the best T-hybrid roses and sell them across the world, positioning Neha as a world-class floriculture company.