4 Smallcap High Margin Stocks to Watch for Future Multibagger Potential: Metro Brands, CAMS, Travel Food Services and ICRA
- October 26, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Metro Brands Rs 819.30. CAMS Rs 650. Travel Food Services Rs 1,157.80. ICRA Rs 4,472.40. Market caps from Rs 4,370 crore to Rs 23,473 crore. Data as of 23 Oct 2026.
Quick Answer
Metro Brands, CAMS, Travel Food Services and ICRA are the 4 picks in this high margin stocks watchlist, with market caps between Rs 4,370 crore and Rs 23,473 crore. Metro Brands stands out for the fastest profit growth, 18.22% a year since FY22, while CAMS offers the highest return on equity at 36.04%. PE ratios run from 22.27 to 56.91, so compare each one with its industry PE before investing. All figures are as of 23 October 2026.
High margin stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Metro Brands, CAMS, Travel Food Services and ICRA meet that test, with market caps from Rs 4,370 crore to Rs 23,473 crore and Metro Brands offering the fastest profit growth, 18.22% a year since FY22. Each of these companies has a market capitalisation below Rs 30,000 crore and an operating margin of at least 25 per cent and a return on equity of at least 15 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a market capitalisation below Rs 30,000 crore and an operating margin of at least 25 per cent and a return on equity of at least 15 per cent, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap below Rs 30,000 crore. Investors screening high margin stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 23 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are High Margin Stocks and Why Do They Attract Multibagger Interest?
High margin stocks are shares of smaller companies that keep a large share of every rupee of sales as operating profit, a sign of pricing power. The four here cover footwear retail, mutual fund services, travel food services and credit ratings.
A high margin shows pricing power and tight cost control. For high margin stocks, both FY26 and the latest quarter showed growth. Investors researching high margin stocks get a fuller picture by reading growth and valuation together. The table below lines up high margin stocks on size, growth and valuation, using complete FY26 and latest quarter numbers. Past performance does not guarantee future returns, so use high margin stocks as a starting point for your own research.
High Margin Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 23 October 2026. ICRA has the lowest PE of the group at 22.27, while CAMS posts the highest return on equity at 36.04%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Metro Brands | 819.30 | 23,473 | 56.91 | 38.47 | 20.63% | 0.79 | 807.00 to 1,250.00 |
| Computer Age Management Services | 650 | 16,532 | 33.66 | 42.45 | 36.04% | 0.05 | 611.40 to 844.90 |
| Travel Food Services | 1,157.80 | 15,398 | 31.67 | 59.28 | 30.57% | 0.17 | 1,035.30 to 1,470.90 |
| ICRA | 4,472.40 | 4,370 | 22.27 | 33.26 | 15.37% | 0.02 | 4,198.20 to 6,620.00 |
Metro Brands: Return on Equity of 20.63%
Metro Brands sells footwear and accessories through its Metro, Mochi, Walkway and Crocs stores across India. It reported FY26 revenue of Rs 2,967.85 crore, up 14.13% year on year, and net profit of Rs 415.89 crore, up 17.33%. Net profit has compounded at 18.22% a year since FY22, while revenue has grown 20.63% a year. Operating margin was 33.98% in FY26.
In the September 2026 quarter, revenue rose 10.88% to Rs 753.21 crore and net profit grew 12.03% to Rs 77.28 crore. Promoters hold 71.80%, which keeps ownership stable. The stock trades at a PE of 56.91 against an industry PE of 38.47, with a return on equity of 20.63%.
CAMS: Return on Equity of 36.04%
CAMS is the registrar and transfer agent for a large share of the Indian mutual fund industry. It reported FY26 revenue of Rs 1,567.42 crore, up 6.26% year on year, and net profit of Rs 472.02 crore, up 1.58%. Net profit has compounded at 13.25% a year since FY22, while revenue has grown 14.03% a year. Operating margin was 48.43% in FY26. The debt-to-equity ratio is 0.05, which keeps interest costs low.
The stock trades at a PE of 33.66 against an industry PE of 42.45, below the sector average, with a return on equity of 36.04%. The dividend yield is 1.87%. In the June 2026 quarter, revenue rose 12.06% to Rs 411.61 crore and net profit grew 17.64% to Rs 127.10 crore. Domestic institutions raised their holding from 17.31% in June 2025 to 23.54% in June 2026.
Travel Food Services: Return on Equity of 30.57%
Travel Food Services runs food and beverage outlets and lounges at airports and other travel locations. It reported FY26 revenue of Rs 1,742.64 crore and net profit of Rs 452.32 crore, up 19.14%. Revenue has compounded at 43.82% a year since FY22. Operating margin was 49.14% in FY26. The debt-to-equity ratio is 0.17.
In the June 2026 quarter, revenue rose 25.92% to Rs 498.38 crore and net profit grew 35.58% to Rs 128.75 crore. Domestic institutions raised their holding from 5.09% in July 2025 to 10.02% in June 2026. The stock trades at a PE of 31.67 against an industry PE of 59.28, below the sector average, with a return on equity of 30.57%.
ICRA: Debt-to-Equity of 0.02
ICRA is a credit rating and research company promoted by Moody’s, and it also offers analytics, consulting and risk management services. It reported FY26 revenue of Rs 674.53 crore, up 17.22% year on year, and net profit of Rs 182.53 crore, up 6.62%. Net profit has compounded at 12.60% a year since FY22, while revenue has grown 15.15% a year. Operating margin was 47.23% in FY26. The debt-to-equity ratio is 0.02, which keeps interest costs low.
The stock trades at a PE of 22.27 against an industry PE of 33.26, below the sector average, with a return on equity of 15.37%. The dividend yield is 2.32%. In the June 2026 quarter, revenue rose 28.32% to Rs 191 crore and net profit grew 32.04% to Rs 56.46 crore. Foreign investors raised their holding from 6.87% in September 2025 to 8.00% in September 2026.
High Margin Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these high margin stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | 4-Year Revenue CAGR | Latest Quarter Revenue Growth | Net Profit Growth (YoY) | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Metro Brands | 2,967.85 | 415.89 | 20.63% | 10.88% | 17.33% | 30.22% |
| CAMS | 1,567.42 | 472.02 | 14.03% | 12.06% | 1.58% | 50.40% |
| Travel Food Services | 1,742.64 | 452.32 | 43.82% | 25.92% | 19.14% | 48.57% |
| ICRA | 674.53 | 182.53 | 15.15% | 28.32% | 6.62% | 53.32% |
Check the Univest Screener for live data on these high margin stocks
Institutional Holding in Metro Brands, CAMS, Travel Food Services and ICRA
Institutional holding shows who is backing these high margin stocks alongside the promoter. The table uses the latest reported quarter for each. CAMS has the deepest institutional backing, with FII and DII together holding 68.42% as of June 2026. Domestic institutions increased their holding over the past year in CAMS (from 17.31% to 23.54%) and Travel Food Services (from 5.09% to 10.02%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Metro Brands | 71.80% | 3.73% | 7.68% | 16.79% | June 2026 |
| CAMS | Nil | 44.88% | 23.54% | 31.57% | June 2026 |
| Travel Food Services | 86.19% | 1.64% | 10.02% | 2.14% | June 2026 |
| ICRA | 51.87% | 8.00% | 20.12% | 20.01% | September 2026 |
Risks to Weigh in High Margin Stocks
Being careful with high margin stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Past growth may not repeat.
- Share prices can move sharply in either direction.
- Valuation: Metro Brands trades at a PE of 56.91 against an industry PE of 38.47, so earnings need to keep growing to support the price.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between High Margin Stocks
Picking from high margin stocks comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (33.26 to 59.28) and ask whether the growth rate justifies any gap.
- Track net profit growth, the operating margin and the return on equity in every quarterly result.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among high margin stocks, Metro Brands stands out for the fastest profit growth, 18.22% a year since FY22, CAMS for the highest return on equity at 36.04%, Travel Food Services for the strongest latest-quarter profit growth at 35.58% and ICRA for the lowest PE of the group at 22.27. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing high margin stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on High Margin Stocks to Watch
Which are the best high margin stocks to watch for multibagger potential?
Ans. Metro Brands, CAMS, Travel Food Services and ICRA are the 4 names this list highlights, with market caps of Rs 23,473 crore, Rs 16,532 crore, Rs 15,398 crore and Rs 4,370 crore respectively. Metro Brands is notable for the fastest profit growth, 18.22% a year since FY22. CAMS stands out for the highest return on equity at 36.04%. Travel Food Services offers the strongest latest-quarter profit growth at 35.58%. ICRA brings the lowest PE of the group at 22.27. These are watchlist names for high margin stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is CAMS a good stock for long-term investors?
Ans. CAMS has a return on equity of 36.04%, a PE of 33.66 against an industry PE of 42.45 and a market cap of Rs 16,532 crore. Net profit has compounded at 13.25% a year since FY22, and FY26 revenue rose 6.26% while June 2026 quarter net profit grew 17.64%. Long-term returns in high margin stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Metro Brands become a multibagger from here?
Ans. Metro Brands has a market cap of Rs 23,473 crore. A multibagger outcome in high margin stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 18.22% a year since FY22, and FY26 revenue rose 14.13%. At a PE of 56.91 against an industry PE of 38.47, valuation should be checked against that growth before investing.
What is the market cap of Metro Brands, CAMS, Travel Food Services and ICRA?
Ans. As of 23 October 2026, Metro Brands has a market cap of Rs 23,473 crore, CAMS has a market cap of Rs 16,532 crore, Travel Food Services has a market cap of Rs 15,398 crore and ICRA has a market cap of Rs 4,370 crore. All of them qualify as smallcaps. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on high margin stocks.
What are the risks of investing in high margin stocks?
Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. Metro Brands trades at a PE of 56.91 against an industry PE of 38.47, so earnings growth needs to hold up.
Why is Metro Brands trading at a PE of 56.91?
Ans. Metro Brands’ PE of 56.91 compares with an industry PE of 38.47. The market is paying a premium for a return on equity of 20.63%, profit growth of 18.22% a year since FY22 and latest-quarter profit growth of 12.03%, which also means the stock is more sensitive if growth slows. Investors in high margin stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in Metro Brands, CAMS, Travel Food Services and ICRA?
Ans. As of the latest reported quarter, FII and DII together hold 11.41% of Metro Brands (3.73% and 7.68%), 68.42% of CAMS (44.88% and 23.54%), 11.66% of Travel Food Services (1.64% and 10.02%) and 28.12% of ICRA (8.00% and 20.12%). Rising institutional holding is a useful signal in high margin stocks, though it should be read with earnings trends rather than on its own.
