CMP: 46

Vikas WSP Ltd. offers guar gum polymers, a natural hydrocolloid, to the food industry. The Group's products are used in cakes and pastries, sugars and chocolates, breads, and ice cream and dairy products.

Vikas WSP is an interesting bet in small-cap space trading at a P/E of less than 2 with dividend yields of well over 2% in the last 12 months. It runs at a debt of 93 Crores with 36 Crores cash in hand. Revenues have risen from 305 Crores to 1042 Crores in the last 5 years. Profits have risen from 45 Crores to 155 Crores in the last 5 years. Profit margins have increased marginally towards 15% over the last 5 years. Recent quarter results have delivered exceedingly strong numbers. I still am not sure why exactly this is trading at such a low P/E. Keep exposure minimal to be on the safer side.