These three small cap stocks have doubled investors money in just three months; check details

As the Indian equity market scales new highs, here are a few small-cap stocks that have captured significant investors' attention. Over the past three months, these stocks from the Nifty Small Cap 250 index have more than doubled their value, showcasing strong growth potential and operational resilience. Gravita India, PG Electroplast, and Black Box have all delivered exceptional performance, driven by robust financials, strategic expansion, and favourable industry trends.

Gravita India

Q1FY25, Gravita witnessed a 29% YoY growth in revenue to ₹908 crore, EBITDA grew 33% YoY to ₹91.24 crore, and net profit jumped 29% YoY to ₹67.33 crore. The company also witnessed a 29% YoY volume growth. As of June 30, the company's order book stood at 60,000 Metric Tons, while the capacity utilization stood at 66%.

Gravita India is one of the key players in the recycling industry and is primarily engaged in recycling lead, which consisted of 88% of its revenue in FY24, aluminium and plastics. It also offers turnkey solutions to its customers, assisting them in setting up recycling plants. The recycling business is anticipated to sustain the strong revenue growth supported by India’s expanding recycling industry with favourable regulatory policies, and formalisation of the sector after the implementation of GST has increased scrap availability for the formal recycling sector and is further expected to grow.

The expansion and formalisation of the industry, coupled with strong operational and financial performance, have attracted strong investors' interest in the stock.

PG Electroplast Ltd (PGEL)

In Q1FY25, the company reported a 95% YoY jump in revenue to ₹1,321 crore. The EBITDA almost doubled to ₹131 crore with a margin of 9.9% versus 9.7% last year. Net Profit grew 1.5 times YoY to ₹85 crore. The product business, primarily led by air conditioners (ACs), grew 124% YoY and contributed 75% of the total revenues.

This year's hottest summer and heatwaves led to the growth in product business due to the demand surge, with investors anticipating this revenue growth the shares gained investors' attention.

Further, the company is expanding capacities in the ACs business by adding new plants and enhancing the capacities of existing plants.

As per management, the company is planning to participate again in the new PLI scheme, which has opened. The company is also planning to enter a new allied segment in a large category where the headroom for growth is significant.

With the company's aims to expand capacities to harness the solid growth in the air-conditioning business, investors remain bullish on the stock due surge in demand, especially led by first-time buyers.

Black Box Ltd

Formerly known as AGC Networks is a global digital infrastructure integrator offering connectivity and network solutions, data centre solutions, modern workplace and cyber security solutions and technology products to businesses globally. The stock has surged over 101% in the last 3 months.

In Q1FY25 earnings, the company reported a 55% YoY jump in net profit to ₹37 crore, EBITDA increased to ₹115 crore, and margin grew to 8.1% from 5.7%. However, revenue saw a 9% YoY drop to ₹1,423 crore. The order book pipeline continues to swell; as of June 30, 2024, the order book increased to US$475 million.

Recently, the board approved plans to raise up to ₹410 crore through preferential issues. The fresh capital will be invested in several key areas, including data centres, network infrastructure, research and development, and market expansion.

The company’s strategic exit from low-value and focus on productivity and margins the core operations demonstrated robust strength. With a healthy pipeline to a mature and robust order book. Investors have remained bullish on the stock driving the rally.

Conclusion

Gravita, PG Electroplast, and Black Box have emerged as star performers in the Nifty Small-Cap 250 index. They have delivered over 100% returns in just three months, supported by strong financials, strategic expansion, and favourable industry conditions.