4 explosive small caps whose profits surged 9-22x in 5 yrs

Summary: A handful of small caps have quietly multiplied their earnings, and their investors’ wealth, many times over. We’ve identified four such names from our screen that blend strong fundamentals with sustained profit growth. Find the complete list below. In the stock market, earnings are the ultimate truth-teller. Share prices may dance to many tunes—sentiment, liquidity, or hype—but over time, they follow profits. A select few small caps with spectacular earnings per share or EPS growth in the last five years prove this: their profit leap has been accompanied by equally solid market returns. Let’s see who these companies are and how we arrived at them: How we found them We began with the small-cap universe—fertile ground for future multi-baggers—and ran a three-step screen: Top-rated small caps: Companies with a perfect score of five on Value Research Stock Ratings were picked to ensure consistency across quality, valuation, growth and momentum. Profit growth: From there, we selected those with five-year EPS growth of more than 50 per cent per annum. This narrowed the universe to 26 stocks. Quality: And lastly, to ensure that quality matched their profit growth, we picked those with a 10 out of 10 Quality Score. The result was a compact list of four small caps with solid underlying fundamentals and a blistering profit growth between 9 and 22 times in just five years. Here’s a quick look at them: 1) Benares Hotels Benares Hotels, a subsidiary of The Indian Hotels Company, runs the storied Taj Ganges and Nadesar Palace hotels in Varanasi and a Ginger hotel in Maharashtra. Riding a post-pandemic tourism surge and record pilgrim inflows,