5 Fundamentally strong small cap stocks that are trading below their intrinsic value; Do you hold any?

Synopsis: Small-cap stocks like Emcure Pharmaceuticals and Garden Reach Shipbuilders are trading below their intrinsic value, backed by strong fundamentals, along with 3 other stocks that may offer long-term value opportunities.

Small-cap​‍​‌‍​‍‌​‍​‌‍​‍‌ stocks typically remain under the radar; however, that is the area where most of the excellent value opportunities are to be found. Here, we feature a few small-cap firms with sound fundamentals whose shares are still available at a price lower than their intrinsic value, thus, wondering if these are the hidden deals the market is ​‍​‌‍​‍‌​‍​‌‍​‍‌ignoring?

Sanofi Consumer Healthcare India

Sanofi Consumer Healthcare India Limited, which was incorporated in the year 2023 and has its headquarters located in Mumbai, is a fast-moving consumer healthcare organisation and a subsidiary of Sanofi India Limited. Its products are marketed in the field of allergy, pain care, and physical well-being under brands such as Allegra, Combiflam, Avil, DePURA, Festal, and Novalgin NU. These are marketed through wholesalers, government agencies, hospitals, pharmacies, and online platforms.

With a market capitalisation of Rs 10,656 crore, the stock is currently trading at Rs 4,623 per share, far below its intrinsic value of Rs 2,196. The company has delivered a robust ROE and ROCE of 83.8 percent and 111 percent.

Emcure Pharmaceuticals

Emcure​‍​‌‍​‍‌​‍​‌‍​‍‌ Pharmaceuticals Limited isan Indian pharma company with its head office in Pune. Kedmi HealthCare Solutions is one of the company’s significant contributions to the healthcare sector in the area of therapy, such as gynaecology, oncology, cardiology, diabetes, and anti-infectives. The company was established in 1981, and it sells products like Orofer XT, Tenectase, and Metpure XL. Emcure has collaborated with Novo Nordisk India to make the weight-loss drug Poviztra with semaglutide as the active ​‍​‌‍​‍‌​‍​‌‍​‍‌ingredient.

With a market capitalisation of Rs 26,573 crore, the stock is currently trading at Rs 1,402 per share, far below its intrinsic value of Rs 690. The company has delivered a robust ROE and ROCE of 18.5 percent and 20.7 percent. Over the past five years, the company has delivered an annualised Sales CAGR of 9 percent and a good Profit CAGR of 36 percent.

Aegis Logistics

Aegis​‍​‌‍​‍‌​‍​‌‍​‍‌ Logistics Limited is a Mumbai-based oil, gas, and chemical logistics company primarily serving the Indian market. The company, which was established in 1956, has facilities for liquids and gases and is involved with petroleum products, LPG, chemicals, and petrochemicals. Additionally, the company offers services such as storage, supply chain, fuel transport, and LPG supply and installation to households, hotels, and ​‍​‌‍​‍‌​‍​‌‍​‍‌industries.

With a market capitalisation of Rs 25,893 crore, the stock is currently trading at Rs 738 per share, far below its intrinsic value of Rs 228. The company has delivered an ROE and ROCE of 15.5 percent and 13.2 percent. Over the past five years, the company has delivered an annualised Sales CAGR of (-1) percent and a Profit CAGR of 46 percent.

Sagility

Sagility​‍​‌‍​‍‌​‍​‌‍​‍‌ Limited is a Bengaluru-based healthcare and insurance BPM company providing end-to-end services across India, the US, Jamaica, the Philippines, and Colombia. The company was established in 2021 (changed its name in August 2025) and is providing services such as claims management, care and revenue cycle management, analytics, and GenAI-led platforms. It is a subsidiary of Sagility ​‍​‌‍​‍‌​‍​‌‍​‍‌B.V.

With a market capitalisation of Rs 24,596 crore, the stock is currently trading at Rs 52.5 per share, far below its intrinsic value of Rs 28.9. The company has delivered an ROE and ROCE of 7.38 percent and 9.58 percent. Over the past three years, the company has delivered a staggering annualised Sales CAGR of 82 percent and a Profit CAGR of 291 percent.

Garden Reach Shipbuilders & Engineers

Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is a government-owned shipyard under the Ministry of Defence and a Miniratna Category I company. GRSE has delivered over 800 vessels, including 112 warships for India and other countries, and is the only Indian shipbuilder with four shipyards. It also makes engines, deck machinery, steel bridges, and marine pumps. With modern facilities, it can build 28 ships at once and has won several awards for excellence.

With a market capitalisation of Rs 25,819 crore, the stock is currently trading at Rs 2,254 per share, far below its intrinsic value of Rs 1,446. The company has delivered a robust ROE and ROCE of 27.6 percent and 36.6 percent. Over the past five years, the company has delivered an annualised Sales CAGR of 29 percent and a Profit CAGR of 25 percent.

Written by Satyajeet Mukherjee

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