Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

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Equity Bottom-up Research

Equity Bottom-Up

Banco Products (India) / Equity Bottom-Up

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<li>Five names cleared the 15% hurdle, averaging 20-27% ROCE over FY22-26; <a href="https://www.smartkarma.com/entities/frontier-springs-limited" target="_blank" data-smartkarma-citation="entities:44291:1" rel="noopener">Frontier Springs (FS IN)</a>  shows the strongest momentum with FY26 ROCE of 41%.</li>
<li>Four of five expanded margins; <a href="https://www.smartkarma.com/entities/gandhi-special-tubes-ltd" target="_blank" data-smartkarma-citation="entities:3577:1" rel="noopener">Gandhi Special Tubes </a>earns a 43.6% EBITDA margin, while <a href="https://www.smartkarma.com/entities/frontier-springs-limited" target="_blank" data-smartkarma-citation="entities:44291:1" rel="noopener">Frontier Springs </a> and <a href="https://www.smartkarma.com/entities/nitta-gelatin-india-limited" target="_blank" data-smartkarma-citation="entities:17900:1" rel="noopener">Nitta Gelatin India </a> more than doubled net margins since FY22</li>
<li>Shares have compounded 22-76% annually since January 2022; Banco, Gandhi, and Nitta trade at 16-17x P/E, while Menon trades at 39x, with strong growth projected for the future.</li>
</ul>


Five names cleared the 15% hurdle, averaging 20-27% ROCE over FY22-26; Frontier Springs (FS IN)  shows the strongest momentum with FY26 ROCE of 41%.
Four of five expanded margins; Gandhi Special Tubes earns a 43.6% EBITDA margin, while Frontier Springs  and Nitta Gelatin India  more than doubled net margins since FY22
Shares have compounded 22-76% annually since January 2022; Banco, Gandhi, and Nitta trade at 16-17x P/E, while Menon trades at 39x, with strong growth projected for the future.


India Small And Micro Cap Compounders: High ROCE, Profitable Growth, Outsized Shareholder Returns

India

Gandhi Special Tubes Ltd manufactures steel tube products consisting of seamless and welded tubes. The Company also manufactures cold forged nuts. Gandhi Special Tubes caters to the automobile and general engineering industry, its customers include Tata Motors, BHEL, Voltas, Samsung and LG.

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Gandhi Special Tubes (GNDI IN)

India Small And Micro Cap Compounders: High ROCE, Profitable Growth, Outsized Shareholder Returns

Five Indian small-caps with 20%+ 5-yr avg ROCE and rising margins have compounded 22-76% a year since Jan-22; Banco, Gandhi and Nitta still trade...

Sameer Taneja

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