- Date : 17/10/2022
- Read: 3 mins
The separating factor for small-caps that turn into large-caps from ones that don't is the ability of the business to change and pivot according to the needs and thrive in the long term.
We have been hearing that small-cap stocks will be the future. Some large-cap companies were small-cap at some point. It is common for a small-cap company to become midcap in a year. However, all small-caps do not turn into large-caps. The separating factor for small-caps that turn into large-caps from ones that don't is the ability of the business to change and pivot according to the needs and thrive in the long term. Let's see five small-cap stocks undergoing dramatic change.
- Kabra Extrusiontechnik - The company manufactures plastic extrusion machinery and is a market leader. It manufactures and installs machines that make packaging films and plastic pipes for its clients. They cater to many industries, including telecom, construction, infrastructure, housing, agriculture, etc. It is also involved in the EV (electric vehicle) space. Its battery division called Battrix allowed it to venture into the EV segment. It has had positive cash flows consistently, and the balance sheet debt is negligible. It has also been paying dividends regularly.
- Wardwizard Innovations & Mobility - The company provides greener and cleaner alternatives through Vyom Innovations and Joy E-bikes. Joy E-bikes is its flagship and sells over ten electric bike varieties that suit different customers. A few brands they own are Thunderbolt, Beast, Glob, etc. Ward is not venturing into the three and four-wheeler EV space. It started its three-wheeler passenger model vehicle in September 2022. Ward has been reporting solid numbers since it turned profitable in 2021.
Also Read: Know this before investing in small and mid-cap companies.
- Mayur Uniquoters - The company is the artificial leather market's market leader. It caters to bags, footwear, and automotive industries. The company boasts clients like Volkswagen, BMW, Daimler, and Mercedes. It has recently ventured into Poly Urethane (PU) manufacturing under Phase-I. It has applications in automotive upholstery, fashion, furnishing, footwear, etc. Their sales have grown with a 4-year CAGR of 4.1%. It has suffered due to high freight costs, a rise in raw materials prices, and a chip shortage recently. Mayur has good cash flows and no debt.
- Mold-Tek Packaging - A rigid plastic packaging market leader, it is a one-stop shop for everything related to packaging. It creates containers for food, paints, lubricants, and more. Its containers are injection moulded. The company has ventured into pharma packaging recently. The company has been profitable and has rewarded its investors regularly with dividends. Its profit margin is superior when compared to others in its segment.
Also Read: How to get the best returns with small and mid-caps?
- Praj Industries - Praj is a market leader in domestic breweries installation, equipment, and ethanol plant installation. It has a facility at Panipat involved in producing a second-generation ethanol plant, which will be the first of its kind. It has signed an MoU to set up ethanol, biodiesel, and CBG production facilities with the company. It has also ventured into Bio-Prism and Bio-Mobility. It has been profitable and is debt-free.
Top 8 Small-Cap Stocks To Invest in in 2022
Conclusion
You must always study the company before investing and see if a small-cap company is under-valued before investing in it. You can make or lose a lot of money and must always be careful before investing.
We have been hearing that small-cap stocks will be the future. Some large-cap companies were small-cap at some point. It is common for a small-cap company to become midcap in a year. However, all small-caps do not turn into large-caps. The separating factor for small-caps that turn into large-caps from ones that don't is the ability of the business to change and pivot according to the needs and thrive in the long term. Let's see five small-cap stocks undergoing dramatic change.
- Kabra Extrusiontechnik - The company manufactures plastic extrusion machinery and is a market leader. It manufactures and installs machines that make packaging films and plastic pipes for its clients. They cater to many industries, including telecom, construction, infrastructure, housing, agriculture, etc. It is also involved in the EV (electric vehicle) space. Its battery division called Battrix allowed it to venture into the EV segment. It has had positive cash flows consistently, and the balance sheet debt is negligible. It has also been paying dividends regularly.
- Wardwizard Innovations & Mobility - The company provides greener and cleaner alternatives through Vyom Innovations and Joy E-bikes. Joy E-bikes is its flagship and sells over ten electric bike varieties that suit different customers. A few brands they own are Thunderbolt, Beast, Glob, etc. Ward is not venturing into the three and four-wheeler EV space. It started its three-wheeler passenger model vehicle in September 2022. Ward has been reporting solid numbers since it turned profitable in 2021.
Also Read: Know this before investing in small and mid-cap companies.
- Mayur Uniquoters - The company is the artificial leather market's market leader. It caters to bags, footwear, and automotive industries. The company boasts clients like Volkswagen, BMW, Daimler, and Mercedes. It has recently ventured into Poly Urethane (PU) manufacturing under Phase-I. It has applications in automotive upholstery, fashion, furnishing, footwear, etc. Their sales have grown with a 4-year CAGR of 4.1%. It has suffered due to high freight costs, a rise in raw materials prices, and a chip shortage recently. Mayur has good cash flows and no debt.
- Mold-Tek Packaging - A rigid plastic packaging market leader, it is a one-stop shop for everything related to packaging. It creates containers for food, paints, lubricants, and more. Its containers are injection moulded. The company has ventured into pharma packaging recently. The company has been profitable and has rewarded its investors regularly with dividends. Its profit margin is superior when compared to others in its segment.
Also Read: How to get the best returns with small and mid-caps?
- Praj Industries - Praj is a market leader in domestic breweries installation, equipment, and ethanol plant installation. It has a facility at Panipat involved in producing a second-generation ethanol plant, which will be the first of its kind. It has signed an MoU to set up ethanol, biodiesel, and CBG production facilities with the company. It has also ventured into Bio-Prism and Bio-Mobility. It has been profitable and is debt-free.
Top 8 Small-Cap Stocks To Invest in in 2022
Conclusion
You must always study the company before investing and see if a small-cap company is under-valued before investing in it. You can make or lose a lot of money and must always be careful before investing.
