Best Microcap Stocks Under Rs 50 – Analysis & Top Picks
Best Microcap Stocks Under Rs 50: Emerging microcap stocks are like rockets which can give multi-bagger returns to their shareholders. They are small in size and any growth in profits happens on a low base, taking their stock prices to new highs.
After huge success, I am adding new Microcap Stock under Rs.50
However, it is difficult to spot emerging microcap stocks from such a large pool of companies. In this article, we’ll present you the best microcap stocks under Rs 50 which you can to your watchlist.
Best Microcap Stocks Under Rs 50
For our article on ‘best microcap stocks under Rs 50’, we’ll learn about 5 different companies, studying their business models, key metrics, strengths and any recent developments. Later, a list puts together more stocks and a summary concludes the article. So without further ado, let us jump in.
Best Microcap Stocks Under Rs 50
#1 – Orient Paper & Industries
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹48 | Market Cap (Cr.) | ₹1,039.71 |
| EPS | ₹5 | Stock P/E | 8.05 |
| RoE | 6% | RoCE | 8% |
| Promoter Holding | 39% | Book Value | ₹71 |
| Debt to Equity | 0.18 | Price to Book Value | 0.61 |
| Net Profit Margin | 9.5% | Operating Margin | 17.2% |
Part of C.K. Birla Group, Orient Paper & Industries Ltd is India’s largest tissue paper manufacturing and exporting company. It is engaged in the manufacturing of paper and paper-based products for various end applications.
Orient Paper makes cartridge paper, drawing paper, cup stock, MF cover paper, pulpboard, HRT towel, ice cream paper, and more. It owns 1 manufacturing plant and 5 offices. Its products are supplied to 21 states and 4 union territories across India.
Furthermore, the paper producer has a global presence with 11.3% of its income coming from customers located in 8 different countries across the globe.
Along with the paper & tissue business, Orient also has a chemicals division under which it manufactures caustic soda. The paper & tissue division and chemicals division accounted for 81.71% and 17.37% of the total revenue in FY23 respectively.
The microcap stock under Rs 50 presently trades at a P/E of 8.05 giving a market capitalization of Rs 1,039.71 crore to the company. Orient earned a net profit of Rs 99 crore on sales of Rs 943 crore.
Best Microcap Stocks Under Rs 50 #2 – XT Global Infotech
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹40 | Market Cap (Cr.) | ₹534.53 |
| EPS | ₹1 | Stock P/E | 50.61 |
| RoE | 11% | RoCE | 13% |
| Promoter Holding | 63% | Book Value | ₹12 |
| Debt to Equity | 0.23 | Price to Book Value | 3.64 |
| Net Profit Margin | 6.5% | Operating Margin | 10.1% |
Founded 25 years ago in 1998, XT Global Infotech is one of the leading providers of information technology, business process outsourcing, and consulting services.
XT Global offers a broad range of solutions and services such as Oracle Cloud, Oracle integration, Oracle analytics, application transformation management, cloud & infrastructure, AP automation, digital business services, and more.
The net profit of the technology company increased fourfold from Rs 4 crore in FY20 to Rs 16 crore in FY23. During this period, it reported profits consistently. Similarly, its sales increased from Rs 195 crore in FY20 to Rs 242 crore in FY23.
As a technology business, it trades at a slightly higher P/B ratio of 3.65 and a P/E ratio of 50.61. XT Global Infotech has a high promoter holding of 62.8% and is currently valued at Rs 534.53 crore.
Best Microcap Stocks Under Rs 50 #3 – BMW Industries
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹46.52 | Market Cap (Cr.) | ₹1,047.55 |
| EPS | ₹2 | Stock P/E | 17.05 |
| RoE | 9% | RoCE | 12% |
| Promoter Holding | 74% | Book Value | ₹27 |
| Debt to Equity | 0.39 | Price to Book Value | 1.53 |
| Net Profit Margin | 9.7% | Operating Margin | 23.1% |
BMW Industries was started in 1970 as the first tube mill company in Kolkata. It started producing lighting poles soon. Over the years, it has grown into a leading steel products player in the nation.
It owns five manufacturing facilities across Howrah and Jamshedpur which churn out TMT, structural, poles, low-diameter pipes, HR & CR coils, speciality flats, high-diameter pipes, and more.
It has well-established partnerships with India’s two steel giants: Tata Steel Limited (TSL) and Steel Authority of India Limited (SAIL). BMW Industries works alongside them in joint ventures and takes projects from them.
As a feather in its cap, this microcap stock under Rs 50 has a high promoter shareholding of 74% highlighting promoters’ belief in the business. It earned a profit of Rs 54 crore in FY23, the largest ever in its history on the sale of Rs 562 crore.
Best Microcap Stocks Under Rs 50 #4 – Virinchi
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹39 | Market Cap (Cr.) | ₹320 |
| EPS | ₹2 | Stock P/E | 16 |
| RoE | 3% | RoCE | 8% |
| Promoter Holding | 41% | Book Value | ₹48 |
| Debt to Equity | 0.78 | Price to Book Value | 0.83 |
| Net Profit Margin | 4.1% | Operating Margin | 34.0% |
Three decades old, Virinchi is a prominent software products and services company with an international presence. Along with its IT business, it also has a healthcare division under which it operates 3 hospitals with a total capacity of 700 beds.
Talking about its IT products and services portfolio, it offers a Saas loan management platform for NBFCs, data centres & IT services, and UPI-enabled payment & credit services.
Furthermore, as part of its expansion efforts, it is adding 400 more beds to its healthcare division through 2 hospitals. Virinchi has been putting focused efforts behind its ‘vCard’ brand to capture the organised credit market in India.
The diversified services provider has consistently remained profitable over the last ten years. Virinchi earned a net profit of Rs 13 crore in FY23 on the sale of Rs 312 crore. At the current P/E ratio of 16.64, it gives a market capitalization of Rs 320.03 crore to the company.
Best Microcap Stocks Under Rs 50 #5 – Wardwizard Innovations & Mobility
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹40 | Market Cap (Cr.) | ₹1,047 |
| EPS | ₹0.4 | Stock P/E | 114 |
| RoE | 13% | RoCE | 18% |
| Promoter Holding | 70% | Book Value | ₹3 |
| Debt to Equity | 0.16 | Price to Book Value | 10.90 |
| Net Profit Margin | 4.0% | Operating Margin | 8.0% |
Wardwizard Innovations & Mobility is a microcap electric vehicles (EV) company engaged in the production and sale of electric bikes and scooters through company outlets and a large dealer network.
One of the front runners in India’s EV sector, it launched its first electric bicycle in 2016. In the last seven years, it has grown into a full-fledged EV player with a broad product range from high-speed e-bikes to 3-wheelers.
It has a large production facility of 90,000 sq ft giving it an annual capacity of 1,20,000 units for 2-wheelers and 3-wheelers each.
It sold 36,500 EVs during FY23 totaling an income of Rs 239 crore and resulting in a net profit of Rs 9 crore. Recently, the EV player also started an in-house batter assembly line with an annual capacity of 1 GWh.
As for its geographical presence, it has a presence in more than 50 cities across 19 states and union territories of the nation through its 750+ dealers, 4 zonal offices and 1 branch office.
List of Top Microcap Stocks Under Rs 50
We are almost at the end of our article on ‘best microcap stocks under Rs 50’. The table below compiles more stocks along with the ones covered above.
| Company Name | CMP | Market Cap (Cr) | Industry |
|---|---|---|---|
| Orient Paper & Industries | ₹48.95 | ₹1,039.71 | Paper & Paper Products |
| XT Global Infotech | ₹40.1 | ₹534.53 | IT Services |
| BMW Industries | ₹46.52 | ₹1,047 | Steel |
| Virinchi | ₹35.2 | ₹320.03 | IT Services |
| Wardwizard Innovations & Mobility | ₹40.1 | ₹1,047.99 | Electric Vehicles |
| Megasoft | ₹50 | ₹379 | IT Services |
| Pudumjee Paper Products | ₹49.7 | ₹471.71 | Paper & Paper Products |
| Kothari Sugars & Chemicals | ₹60 | ₹506 | Sugar |
| VIP Clothing | ₹44 | ₹363 | Textiles |
| Manaksia Steels | ₹43 | ₹279 | Steel |
Conclusion
As we conclude our study of the ‘best microcap stocks under Rs 50’, we can say that companies with higher earnings potential in the future are better placed than their peers. Thus, even if a business is small in size, it can be an attractive proposition if the management is putting sustained efforts towards capacity expansion or newer business lines.