In the smallcap universe, we have picked up three scrips that hold promise for the future.
Rossari Biotech Ltd
Rossari Biotech is a specialty chemical and textile chemical manufacturing company. It is the largest textile specialty chemical manufacturer of India. They operate in three main segments: Home and personal care, Textile chemicals, Animal Health, and Nutrition products. They have over 2,000 plus products under these three categories. The key strength of the company is that they have a very diversified product portfolio. With a good research facility and pan India distribution network, they can increase their customer base. The current situation of the pandemic has made people realize the importance of hygiene. Thus the demand for disinfectants, antibacterial and antimicrobial textile material has increased significantly. The need for these products will expedite its revenue growth.
From the last five years, the company has reported a steady rise in revenue and net profits. Its net profit was Rs 79.10 crore in FY2021, up 403% compared to Rs 15.72 crore in FY2017. In FY2021, Rossari reported a consolidated total income of Rs 700.62 crore, up 16% from Rs 603.7 crore in FY2020. Its profit after tax was up 20.7% year-on-year during the same period. The stock gained 69.8% in a year, 40.3% in six months, and 1.8% in a month. Currently, it is trading at an 8.4% discount to its 52-week high.
Route Mobile Ltd
Route Mobile is India's one of the leading cloud computing services providers. They offer services to enterprises, OTT players, and mobile operators. The company also offers text messaging, voice calling, firewall, email services to their clients worldwide. The recent acquisition of the email communication platform of Sarv Webs will help the company provide a complete customized email interaction platform to its clients. The growing use of OTT platform, OTP services by various sectors should boost its revenue in the future. The three years revenue CAGR growth was 40.8% and 39.9% for net profit. Revenue was Rs 1,422.2 crore in FY2021, up 46.9% compared to Rs 968.1 crore in FY2020. Its net profit of Rs 133.3 crore more than doubled during the same period. The scrip returned 225.1% in a year, 66.8% in six months, and a staggering 24.8% in a month, indicating continued momentum in the stock.
Mazagon Dock Shipbuilders Ltd
Mazagon Dock is a government company operating under the Ministry of Defense. The company is known as 'hip builders of the nation'. The company's shipbuilding division offers building and repairs of naval ships, whereas the submarine and heavy engineering divisions include building, repairing, and refitting diesel-electric submarines. Overall the outlook for the defense sector is positive. The government has recently banned importing 101 defense items reflecting the Government'sGovernment's focus on promoting and creating opportunities for Indian companies. It should drive the top-line of Mazagaon shipbuilders in the near to medium term.
The company's net profit in Q4FY2021 was Rs 230.54 crore, up a whopping 455% compared to Rs 41.55 crore in the corresponding period of fiscal 2020. The scrip jumped 51.8% in a year, 27.9% in six months, and 3.6% in a month, indicating a continued momentum.
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