THREE MICROCAP STOCKS WITH RESERVES HIGHER THAN THEIR MARKET CAP TO KEEP ON YOUR WATCHLIST

Some microcap companies have significantly higher reserves than their market caps, portraying them as having a higher capacity to absorb future shocks and continue its business uninterrupted. Below are 3 such companies:

- the company is engaged in the production and sale of diversified packaging products such as metal packaging, ROPP caps, plastic closures, PET preforms, and aluminium tubes, along with a few other industries such as petrochemicals and real estate development. The company has a huge reserve base of Rs 1,238 crore against its market capitalisation of Rs 930 crore, which is more than 1.3x of its market cap. - the company is into the manufacture of sugar, along with the production of the related by-products. It makes a wide range of products such as ethanol, molasses, bagasse, and industrial spirits. The company has a high reserve base of Rs 1,040 crore against its market capitalisation of Rs 771 crore, which is more than 1.3x of its market cap. - this is a diversified textile company which makes various types of yarns, knitted garments, woollen wear, woven fabrics and denim. The company has a huge reserve base of Rs 1,517 crore against its market capitalisation of Rs 722 crore, which is more than 2x of its market cap.