Microcap Stocks Surge After Strong Q3 Earnings, Posting Up to 310% YoY Profit Growth
Microcap Stocks Surge : Microcap stocks have been gaining attention as two engineering firms, SRM Contractors and Forbes & Company, reported outstanding Q3FY25 results, driving their stock prices higher. The companies posted robust revenue and profit growth, with SRM Contractors delivering an impressive 310% YoY surge in net profit, while Forbes & Company recorded a 141.73% YoY growth.
Let’s take a closer look at their Q3 performances and what’s driving investor interest.
SRM Contractors: 310% YoY Net Profit Growth Boosts Shares
Stock Performance
SRM Contractors’ stock surged 4.98% after opening at ₹342.10, touching its intraday high at the same level. The company currently holds a market capitalization of ₹761 crore.
Q3FY25 Financial Highlights
SRM Contractors reported an impressive 73.53% YoY jump in revenue, growing from ₹86.69 crore in Q3FY24 to ₹150.44 crore in Q3FY25. On a QoQ basis, the company saw a 58% increase from ₹95.24 crore in the previous quarter.
The biggest highlight was its net profit, which skyrocketed 310% YoY, increasing from ₹3.90 crore to ₹16 crore. Even on a QoQ basis, net profit rose 54.73% from ₹10.34 crore in Q2FY25.
About SRM Contractors
Founded in 2008, SRM Contractors Limited is a leading engineering construction company based in Jammu, India. It specializes in road construction, tunnels, bridges, and other civil infrastructure projects, primarily in the Union Territories of Jammu & Kashmir and Ladakh. The company operates as an Engineering, Procurement, and Construction (EPC) contractor and is well-positioned in the infrastructure sector.
Forbes & Company: 243% Revenue Growth Fuels Rally
Stock Performance
Forbes & Company shares opened at ₹354, gaining 2.46% and later touching an intraday high of ₹359, up 3.90%. The company has a market capitalization of ₹451 crore.
Q3FY25 Financial Highlights
The company’s revenue from operations surged 243.11% YoY, rising from ₹11.89 crore in Q3FY24 to ₹40.23 crore in Q3FY25. QoQ revenue growth stood at 16.07%, increasing from ₹34.66 crore in Q2FY25.
Net profit also witnessed remarkable growth, climbing 141.73% YoY from ₹3.93 crore to ₹9.5 crore. QoQ net profit growth stood at 84.82%, up from ₹5.14 crore in Q2FY25.
About Forbes & Company
Established in 1767, Forbes & Company is one of India’s oldest companies. Originally focused on trading, manufacturing, and shipping, it has since diversified into precision tools, industrial automation, health and hygiene products, and real estate. The company operates across Engineering, Real Estate, and IT Enabled Services.
Key Financial Ratios Comparison
| Financial Metrics | SRM Contractors (Q3FY25) | Forbes & Company (Q3FY25) |
|---|---|---|
| Revenue Growth (YoY) | 73.53% | 243.11% |
| Revenue Growth (QoQ) | 58% | 16.07% |
| Net Profit Growth (YoY) | 310% | 141.73% |
| Net Profit Growth (QoQ) | 54.73% | 84.82% |
| Market Cap | ₹761 crore | ₹451 crore |
| Stock Price Movement | +4.98% | +3.90% |
What’s Driving the Growth?
Both SRM Contractors and Forbes & Company have delivered stellar financial performances, reflecting strong business fundamentals and sectoral tailwinds.
- Infrastructure Push: India’s continued investment in infrastructure projects is benefiting engineering and construction firms like SRM Contractors. The government’s focus on roadways, bridges, and tunnels is fueling revenue growth.
- Diversified Business Model: Forbes & Company’s presence in multiple industries, including precision tools and real estate, has helped drive revenue expansion. The company’s ability to capitalize on emerging industrial trends has played a crucial role in its financial success.
- Improved Profit Margins: Strong revenue growth combined with efficient cost management has resulted in significant profitability improvements for both firms.
Investor Outlook: Are These Stocks a Good Buy?
With impressive growth in revenue and net profit, both SRM Contractors and Forbes & Company are drawing investor interest. The strong financials indicate a positive outlook for these companies, particularly in the infrastructure and engineering sectors.
While microcap stocks tend to be volatile, these companies have demonstrated consistent financial performance, making them potential long-term opportunities. However, investors should conduct further research and consider risk factors before making investment decisions.
Conclusion
The Q3FY25 earnings season has brought microcap stocks into the spotlight, with SRM Contractors and Forbes & Company delivering exceptional growth in revenue and net profit. With India’s infrastructure sector booming and diversified business strategies in place, these stocks could remain attractive picks in the near future.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.