Hunt smallcaps Peter Lynch style. 5 stock ideas to begin with

Ambika Cotton Mills has an operating revenue of Rs 986.74 crore on a trailing 12-month basis. Annual revenue growth of 46% is outstanding, Pre-tax margin of 27% is great, and ROE of 24% is exceptional. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. Overall, the stock is lagging behind in some of the technical parameters, but great earnings make it a stock to examine in more detail.

Maithan Alloys has an operating revenue of Rs 3,447.13 crore on a trailing 12-month basis. Annual revenue growth of 84% is outstanding, Pre-tax margin of 36% is great, and ROE of 35% is exceptional. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. The stock from a technical standpoint is trading below its 200DMA and around 6% up from its 50DMA. It needs to take out the 200DMA levels and stay above the same to make any further meaningful move.

Panama Petrochem has an operating revenue of Rs 2,132.76 crore on a trailing 12-month basis. Annual revenue growth of 47% is outstanding, Pre-tax margin of 13% is healthy, and ROE of 29% is exceptional. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. The stock has mediocre earnings and technical strength, there are superior stocks in the current market environment.

Goldiam International has an operating revenue of Rs 671.75 crore on a trailing 12-month basis. Annual revenue growth of 72% is outstanding, Pre-tax margin of 22% is great, and ROE of 20% is exceptional. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles.

D-Link (India) has an operating revenue of Rs 1,051.28 crore on a trailing 12-month basis. Annual revenue growth of 26% is outstanding, Pre-tax margin of 6% is okay, and ROE of 13% is good. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. Institutional holding has gone up in the last reported quarter is a positive sign.


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