4 Smallcap High Operating Margin and High ROE Stocks to Watch for Future Multibagger Potential: Metro Brands, CAMS, Genus Power and Kirloskar Pneumatic
- November 2, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Metro Brands Rs 823.25. CAMS Rs 653.60. Genus Power Rs 273.50. Kirloskar Pneumatic Rs 538.45. Market caps from Rs 7,251 crore to Rs 23,586 crore. Data as of 30 Oct 2026.
Quick Answer
Metro Brands, CAMS, Genus Power and Kirloskar Pneumatic are the 4 picks in this high operating margin and high ROE stocks watchlist, with market caps between Rs 7,251 crore and Rs 23,586 crore. Metro Brands stands out for the largest market cap at Rs 23,586 crore, while CAMS offers the highest return on equity at 36.04%. PE ratios run from 13.11 to 57.19, so compare each one with its industry PE before investing. All figures are as of 30 October 2026.
High operating margin and high ROE stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Metro Brands, CAMS, Genus Power and Kirloskar Pneumatic meet that test, with market caps from Rs 7,251 crore to Rs 23,586 crore and Metro Brands offering the largest market cap at Rs 23,586 crore. Each of these companies has a market capitalisation below Rs 30,000 crore and an operating margin of at least 20 per cent and a return on equity of at least 20 per cent and profit growth in FY26 and in the latest quarter, 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 20 per cent and a return on equity of at least 20 per cent and profit growth in FY26 and in the latest quarter, 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 operating margin and high ROE stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 30 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are High Operating Margin and High ROE Stocks and Why Do They Attract Multibagger Interest?
High operating margin and high ROE stocks are shares of smaller companies that keep at least twenty paise of operating profit from every rupee of sales and also earn a return on equity of twenty per cent or more, a mix that marks a strong and efficient business. The four here cover footwear retail, mutual fund services, power meters and compressors.
A high margin shows pricing power and cost control, and a high return on equity shows that shareholder money is put to good use, so the two together point to a business with a real edge. For high operating margin and high ROE stocks, both FY26 and the latest quarter showed growth. Whichever way you read high operating margin and high ROE stocks, the common thread is rising profit backed by complete financial data. For high operating margin and high ROE stocks, checking each result against the latest quarter matters more than any single ratio. The next sections explain what stands out in each of high operating margin and high ROE stocks, using FY26 and latest quarter data. Prices move daily, so recheck the figures for high operating margin and high ROE stocks before you decide.
High Operating Margin and High ROE Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 30 October 2026. Genus Power has the lowest PE of the group at 13.11, 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 | 823.25 | 23,586 | 57.19 | 38.47 | 20.63% | 0.79 | 805.20 to 1,250.00 |
| Computer Age Management Services | 653.60 | 16,623 | 33.85 | 42.45 | 36.04% | 0.05 | 611.40 to 844.90 |
| Genus Power Infrastructures | 273.50 | 8,543 | 13.11 | 45.71 | 26.71% | 1.04 | 210.40 to 363.00 |
| Kirloskar Pneumatic Company | 538.45 | 7,251 | 27.66 | 44.99 | 20.51% | 0.00 | 495.05 to 1,098.55 |
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 57.19 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 33.85 against an industry PE of 42.45, below the sector average, with a return on equity of 36.04%. The dividend yield is 1.86%. 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.
Genus Power: 76.37% Profit CAGR Since FY22
Genus Power Infrastructures makes smart meters and metering solutions for power utilities. It reported FY26 revenue of Rs 4,821.22 crore, up 90.97% year on year, and net profit of Rs 564.95 crore, up 91.68%. Net profit has compounded at 76.37% a year since FY22, while revenue has grown 59.53% a year. Operating margin was 20.70% in FY26.
In the June 2026 quarter, revenue rose 45.98% to Rs 1,407.29 crore and net profit grew 35.55% to Rs 174.70 crore. The share price has gained 219.09% over five years. The stock trades at a PE of 13.11 against an industry PE of 45.71, below the sector average, with a return on equity of 26.71%.
Kirloskar Pneumatic: Return on Equity of 20.51%
Kirloskar Pneumatic makes compressors, gas and process equipment and refrigeration systems for energy, industry and infrastructure customers. It reported FY26 revenue of Rs 1,814.46 crore, up 9.15% year on year, and net profit of Rs 254.28 crore, up 20.35%. Operating margin was 20.88% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
The stock trades at a PE of 27.66 against an industry PE of 44.99, below the sector average, with a return on equity of 20.51%. In the June 2026 quarter, revenue rose 7.27% to Rs 311.20 crore and net profit grew 31.23% to Rs 33.20 crore. The share price is up 10.38% over the past year. Foreign investors raised their holding from 7.12% in June 2025 to 10.40% in June 2026.
High Operating Margin and High ROE Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these high operating margin and high ROE 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) | Revenue Growth (YoY) | Latest Quarter Revenue Growth | Net Profit Growth (YoY) | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Metro Brands | 2,967.85 | 415.89 | 14.13% | 10.88% | 17.33% | 30.22% |
| CAMS | 1,567.42 | 472.02 | 6.26% | 12.06% | 1.58% | 50.40% |
| Genus Power | 4,821.22 | 564.95 | 90.97% | 45.98% | 91.68% | 22.14% |
| Kirloskar Pneumatic | 1,814.46 | 254.28 | 9.15% | 7.27% | 20.35% | 17.72% |
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Institutional Holding in Metro Brands, CAMS, Genus Power and Kirloskar Pneumatic
Institutional holding shows who is backing these high operating margin and high ROE 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%).
| 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 |
| Genus Power | 39.34% | 18.72% | 3.05% | 38.89% | June 2026 |
| Kirloskar Pneumatic | 38.81% | 10.40% | 25.98% | 24.82% | June 2026 |
Risks to Weigh in High Operating Margin and High ROE Stocks
Being careful with high operating margin and high ROE 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 57.19 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 Operating Margin and High ROE Stocks
Picking from high operating margin and high ROE 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 (38.47 to 45.71) 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.
Download the Univest iOS App or Univest Android App to track Metro Brands, CAMS, Genus Power and Kirloskar Pneumatic live prices.
Conclusion
Among high operating margin and high ROE stocks, Metro Brands stands out for the largest market cap at Rs 23,586 crore, CAMS for the highest return on equity at 36.04%, Genus Power for the fastest profit growth, 76.37% a year since FY22 and Kirloskar Pneumatic for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.00. 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 operating margin and high ROE 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 Operating Margin and High ROE Stocks to Watch
Which are the best high operating margin and high ROE stocks to watch for multibagger potential?
Ans. Metro Brands, CAMS, Genus Power and Kirloskar Pneumatic are the 4 names this list highlights, with market caps of Rs 23,586 crore, Rs 16,623 crore, Rs 8,543 crore and Rs 7,251 crore respectively. Metro Brands is notable for the largest market cap at Rs 23,586 crore. CAMS stands out for the highest return on equity at 36.04%. Genus Power offers the fastest profit growth, 76.37% a year since FY22. Kirloskar Pneumatic brings a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.00. These are watchlist names for high operating margin and high ROE 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 33.85 against an industry PE of 42.45 and a market cap of Rs 16,623 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 operating margin and high ROE stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Genus Power become a multibagger from here?
Ans. Genus Power has already gained 219.09% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in high operating margin and high ROE stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 76.37% a year since FY22, and FY26 revenue rose 90.97%. At a PE of 13.11 against an industry PE of 45.71, valuation should be checked against that growth before investing.
What is the market cap of Metro Brands, CAMS, Genus Power and Kirloskar Pneumatic?
Ans. As of 30 October 2026, Metro Brands has a market cap of Rs 23,586 crore, CAMS has a market cap of Rs 16,623 crore, Genus Power has a market cap of Rs 8,543 crore and Kirloskar Pneumatic has a market cap of Rs 7,251 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 operating margin and high ROE stocks.
What are the risks of investing in high operating margin and high ROE 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 57.19 against an industry PE of 38.47, so earnings growth needs to hold up.
Why is Metro Brands trading at a PE of 57.19?
Ans. Metro Brands’ PE of 57.19 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 operating margin and high ROE 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, Genus Power and Kirloskar Pneumatic?
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%), 21.77% of Genus Power (18.72% and 3.05%) and 36.38% of Kirloskar Pneumatic (10.40% and 25.98%). Rising institutional holding is a useful signal in high operating margin and high ROE stocks, though it should be read with earnings trends rather than on its own.
