Fastest Growing Small Companies

7/27/2019 Fastest Growing Small Companies

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Fastest Growing small companiesBy

Prof. Prasad Kulkarni


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1. Zydus Wellness

Zydus Wellness, the Rs 350-crore FMCG arm of

Zydus Cadila group, has a strong product

portfolio with an underlying health plank. The

company has invested heavily on building itsbrands such as Sugar Free, Nutralite and

EverYuth.

Despite a subdued performance in the June

quarter, the company's business continues tohold the promise of strong growth. Sugar Free is

India's largest-selling low-calorie sweetener with

an 86% market share.


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EverYuth range of skin-care products enjoy their

leadership position in the scrubs and peel-offs

category despite competition from MNCs and

other Indian players. However, the company isfacing intense competition in the face-wash

category. Growing at over 20%, the company is

poised to achieve its target of Rs 500 crore

revenue by 2013-14.


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2. National Peroxide

Improvement in the prices of chemical hydrogen

peroxide helped the industry leader National

Peroxide in FY11. The company achieved 49%

jump in revenues and 255% in net profits, whileits production improved 11.4% to 71,826 tonne.

The company expanded its hydrogen peroxide

capacity by 24%, for which it had to shut down

its plant in the April-June quarter for 70 days.


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Even after commissioning the plant, the

commercial production could begin only from

September 2011 onwards. This is set to affect its

numbers in the first half of FY12. However, thesecond half of FY12 onwards it will enjoy the full

benefits of expanded capacity.


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3. Mayur Uniquoters

Mayur Uniquoters is India's leading

manufacturer of artificial leather and supplies to

domestic automakers such as Maruti, Tata

Motors, Hero MotoCorp, M&M, etc, and footwearmakers such as Bata, Liberty, Action, etc.
http://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cmshttp://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cmshttp://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cmshttp://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cms


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It has continued to grow well over last few years without

leveraging its balance sheet and is one of the few

companies giving quarterly dividends. The company has

started supplying to overseas automakers such as Ford

and Chrysler and is trying to enlist with GM, Toyota,BMW and Mercedes Benz.

The company has maintained its position in the 100

Fastest Growing Small Companies list for second

consecutive year and has proven a multibagger in lastone year. It appears well placed to continue its steady

growth in coming years.
http://www.zigwheels.com/newcars/Mercedes-Benzhttp://www.zigwheels.com/newcars/Mercedes-Benz


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4. Sandur Manganese & Iron Ore

Sandur Manganese & Iron Ore is India's

secondlargest manganese ore miner and also

operates a ferro-alloys plant with almost all its

2,000-acre mining land in Karnataka. The company benefited from the improved

pricing scenario in FY11 although its sales

volumes dipped on export ban in Karnataka,

high freight costs and 20% export duty imposedon iron ore.


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The company's June 2011 quarter numbers

were hit by Supreme Court's blanket ban on

mining activity in Karnataka. This factor is likely

to weigh on its overall performance of FY12 likeother mining companies and could make it

difficult to maintain its position in the list next

year


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5. Lumax Auto Technologies

Lumax Auto Technologies is an auto-component

maker supplying transmission and steering

components, body and chassis and electrical

components. Growing production of automobiles by both

Indian and foreign players, a buoyant

replacement market and rising costs have

benefited Lumax.
http://economictimes.indiatimes.com/lumax-auto-technologies-ltd/stocks/companyid-18774.cmshttp://economictimes.indiatimes.com/lumax-auto-technologies-ltd/stocks/companyid-18774.cmshttp://economictimes.indiatimes.com/lumax-auto-technologies-ltd/stocks/companyid-18774.cmshttp://economictimes.indiatimes.com/lumax-auto-technologies-ltd/stocks/companyid-18774.cmshttp://economictimes.indiatimes.com/lumax-auto-technologies-ltd/stocks/companyid-18774.cmshttp://economictimes.indiatimes.com/lumax-auto-technologies-ltd/stocks/companyid-18774.cmshttp://economictimes.indiatimes.com/lumax-auto-technologies-ltd/stocks/companyid-18774.cmshttp://economictimes.indiatimes.com/lumax-auto-technologies-ltd/stocks/companyid-18774.cms


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It is a debt-free, cashrich company and is

planning to add two more plants to the existing

six facilities in Maharashtra. Its entry into

infrastructure lighting, although small at present,could safeguard it from cyclicality of the auto

industry in the future.


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6. WABCO India,

WABCO India, now a 75% subsidiary ofWABCO

Holdings of the US, is a supplier of auto

components to commercial vehicles industry.

A significant revival in Indian commercialvehicles industry, thanks to investments in

development of road and infrastructure, enabled

it to post a strong revenue growth.
http://economictimes.indiatimes.com/topic.cms?search=WABCO%20Indiahttp://economictimes.indiatimes.com/topic.cms?search=WABCO%20Indiahttp://economictimes.indiatimes.com/topic.cms?search=WABCO%20Holdingshttp://economictimes.indiatimes.com/topic.cms?search=WABCO%20Holdingshttp://economictimes.indiatimes.com/topic.cms?search=WABCO%20Holdingshttp://economictimes.indiatimes.com/topic.cms?search=WABCO%20Holdingshttp://economictimes.indiatimes.com/topic.cms?search=WABCO%20Indiahttp://economictimes.indiatimes.com/topic.cms?search=WABCO%20India


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As investments in roads grow with more and

more private participation, the long-term growth

trajectory will remain strong for the commercial

vehicle segment. However, in the shortterm, cyclicality in the

commercial vehicle market and rising raw

material costs could be a concern.


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7. eClerx

Mumbai-based KPO operator eClerx has

benefited from the buoyancy in the demand from

the global financial market.

Despite talks of a global slowdown, eClerxreported a strong sequential growth of over 6%

in the five out of the six quarters ended

September 2011, validating success of its

business model.
http://economictimes.indiatimes.com/topic.cms?search=KPOhttp://economictimes.indiatimes.com/topic.cms?search=KPO


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PBDIT margin above 33% shows that the new

business did not come at the expense of

profitability. This has helped in offsetting the

impact of higher taxes due to minimum alternatetax on SEZ income.

The company offers critical back-end services to

the financial sector, which are not affected by the

movement of business cycles. This should keepthe company going during tough times.


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8. Hawkins Cookers

Hawkins Cookers is seeing a huge demand for

its products but was unable to meet it because

of labour issues at its plants.

Last year, the company's net sales grew 17%.The profit declined due to higher raw material

prices.


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But now most of the labour issues have been

resolved and input prices have come down from

their peak.

Hence the company will be able to run its plantsmore efficiently and higher growth can be

expected.

Besides, the company is financially sound with

high return ratios, strong cash flows and low

debt.


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9. Everonn Education

Education services providerEveronn Education

has reported strong buoyancy over the past

three years backed by sound return and liquidity

ratios. Its stock has, however, plummeted 44% from the

year-ago level following the judicial action

against its erstwhile MD in early September.
http://economictimes.indiatimes.com/everonn-education-ltd/stocks/companyid-17730.cmshttp://economictimes.indiatimes.com/everonn-education-ltd/stocks/companyid-17730.cmshttp://economictimes.indiatimes.com/everonn-education-ltd/stocks/companyid-17730.cmshttp://economictimes.indiatimes.com/everonn-education-ltd/stocks/companyid-17730.cmshttp://economictimes.indiatimes.com/everonn-education-ltd/stocks/companyid-17730.cmshttp://economictimes.indiatimes.com/everonn-education-ltd/stocks/companyid-17730.cmshttp://economictimes.indiatimes.com/everonn-education-ltd/stocks/companyid-17730.cmshttp://economictimes.indiatimes.com/everonn-education-ltd/stocks/companyid-17730.cms


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The company has appointed new leadership and

has ensured the soundness of its business

fundamentals. In the past one month, its stock

has recovered from the lows of Rs 228 to thecurrent level of Rs 380.

Its performance under the new leadership in the

next few quarters will be crucial to restore the

investor confidence.


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Companies to watch out forProf Prasad Kulkarni


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Fastest Growing Small Companies