Small Cap, Big Profit
If you can take nasty surprises in your stride and can afford to wait for the next bull market, then consider small-caps. These stocks are going at fire sale prices and are worth a look.
Temptation Foods is a turnaround story. The December quarter turnover rose to Rs 231 core from Rs 36 crore a year ago; the profit after tax is Rs 12.10 crore. At Rs 27, it trades at 1.3 times its estimated annualised 2008-9 earnings per share.
SKM Egg Products is a 100% export-oriented unit. The company witnessed a healthy sales growth of 41% in the past quarter and registered a net profit of Rs 5.3 crore.
The ICICI Bank-promoted 3i Infotech registered a 37% rise in the third quarter in net profit to Rs 27 crore and has a healthy order book of Rs 1,420 crore. However, the slowdown in the financial services segment and high FCCBs are a matter of concern.
Fag Bearings posted a 14% growth in revenue and has registered around 30% profit growth over the past five years. It made a net profit of Rs 21 crore in the third quarter of 2008-9.
Go back to: Creating Long Term Wealth? Buy Mid Cap Stocks
