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Despite the continuous FII outflows, we believe small-cap stocks are unlikely to be significantly affected, as FIIs hold negligible stakes in this segment. On the other hand, large-cap stocks may remain under pressure in the short to medium term due to sustained FII selling. For quality small-cap investors, this market weakness presents an opportunity to accumulate fundamentally strong small-cap stocks
Three Multibagger Stocks to buy by www.manishgoelstocks.com’s Manish Goel:
• Bajaj Steel Industries Ltd (BSE Code 507944) – Bajaj Steel Industries Ltd has been selected as a promising investment based on India’s growing focus on manufacturing, a key pillar of the “Make in India” initiative.
The company is a diversified engineering player, manufacturing products such as cotton ginning machinery, electrical panels, pre-engineered buildings, fire extinguishers, specialty conveyors, structural fabrications, steel doors, laser cutting machines, and other allied products. With the Indian government’s emphasis on boosting domestic manufacturing, Bajaj Steel Industries stands to benefit significantly, as its products are essential for setting up new manufacturing facilities.
Additionally, the ongoing data centre boom in India is expected to drive demand for electrical panels. Bajaj Steel Industries is aggressively expanding its operations to capitalize on this demand. In November 2024, the company commenced commercial production at its new pre-engineered building plant in Nagpur. By 2025, it plans to launch another plant for electrical panels, which will more than double its manufacturing capacity in this segment.
From a valuation perspective, the stock is trading at an attractive level, with a price-to-book ratio of less than 5. Considering its strategic expansion, favorable industry tailwinds, and strong fundamentals, we believe Bajaj Steel Industries has significant long-term growth potential. Investors with a 3-5 year horizon may find this stock to be a compelling opportunity.
• Titan Biotech Ltd (BSE code 524717) – Titan Biotech is an ISO 9001:2008 certified and cGMP-compliant manufacturer and exporter of biological products catering to diverse industries, including pharmaceuticals, nutraceuticals, food and beverages, biotechnology, fermentation, cosmetics, veterinary and animal feed, agriculture, microbiology culture media, and plant tissue culture media.
The company stands to benefit significantly from India’s recently introduced BioE3 Policy (Biotechnology for Economy, Environment, and Employment). Approved by the Union Cabinet in August 2024, this policy emphasizes biomanufacturing to foster a sustainable, innovative, and resilient economy. As a key player in India’s biotechnology space, Titan Biotech is well-positioned to capitalize on this initiative.
Titan Biotech’s portfolio includes branded and patented products, such as Oxibil, each supported by its own dedicated website. The company has demonstrated consistent growth, with sales and profits increasing at an impressive CAGR of approximately 20% over the past five years. With substantial investments in plant and machinery over the last 1-2 years, its growth trajectory is expected to accelerate further.
From a valuation perspective, the stock is trading at a price-to-book ratio of less than 5, making it highly undervalued at present. Considering its robust fundamentals, strategic positioning under the BioE3 policy, and strong growth potential, we believe Titan Biotech Ltd has significant multibagger potential over the long term. Investors with a 3-5 year horizon may find this an attractive opportunity.
• Suraj Products Ltd (BSE code 518075) – Suraj Products Ltd (SPL) is a secondary steel producer engaged in the production of sponge iron, pig iron, ingots/billets, TMT bars, and power generation. The company derives a significant portion of its revenue from semi-urban and rural areas, reflecting its deep market penetration.
In a notable move, SPL recently established a new subsidiary in Dubai, marking its entry into international markets. One of the company’s key strengths lies in its integrated operations, which provide significant cost advantages. For instance, sponge iron produced in-house is used to manufacture billets, which in turn are used for producing TMT bars. Additionally, its captive power plant further enhances cost efficiencies.
The company has shown steady growth in sales and profits over the past four years. With the Indian government’s strong focus on infrastructure development and affordable housing, demand for TMT bars is expected to remain robust, providing long-term earnings visibility.
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On the valuation front, SPL is attractively priced, trading at a price-to-book ratio of less than 4 and a price-to-earnings ratio of under 20. Given its strong fundamentals, integrated operations, and favourable industry outlook, we believe Suraj Products Ltd has significant multibagger potential over the long term. Investors with a 3-5 year horizon may find this an appealing opportunity.
Manish Goel is founder www.manishgoelstocks.com.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
