When promoters aggressively buy into their own company, it could mean a couple of things. Investors look at it as either a rescue mission or a restart for the company. Especially in the case of less-known small-cap companies, a category generally viewed with greater suspicion by average investors.
While a big stake hike in the company by a promoter could mean that they now have more skin in the game and carry bigger risk, it could also mean that the promoter now controls the company even more firmly, which may or may not be good news for the minority shareholders. If they decide to delist tomorrow, the average investor might be forced to sell.
But the 2 stocks we are digging into today do not only have the promoter holding jump to their credit. Both boast of industry-beating ROCE (Return on Capital Employed), Zero debt and have logged over 120% compounded growth in profits in the last 5 years.
#1 RRP Defence: 83% ROCE vs. The valuation risk
Established in 1981, RRP Defense Ltd was a government-recognised export house. The company’s name was changed to Euro Asia Exports Limited in November 1994 and was in the business of trading and dealing in fabrics, garments and other trading material, etc. Since then, the company has pivoted its business to Defence which you will read about below.
With a market cap of Rs 1,297 cr, the company has zero debt and a current ROCE of 83%. A combination most smart investors would grab with both hands. But a fair warning, the 5-Year ROCE is a modest 21% for the company, so how sustainable is the current 83% is a question one must ask.
The company’s promoter holdings were at 16% up until the quarter ending March 2025. At the end of June 2025, the holding fell to 1.85%, creating a sense of danger for investors. However, for the quarter ending September 2025, the promoter holdings went up to 75%, with Rajendra Kamalkant Chodankar buying a massive 74% stake under an open offer control acquisition.
This can be attributed to the strategic pivot the company has undergone from trading/export activities to the defense and drone sector, marked by name change (Euro Asia to RRP Defense). With a complete management overhaul, and aggressive inorganic/organic growth, the company is now focusing on drone manufacturing, thermal imaging, electro-optics, and related services under initiatives like Make in India and Atmanirbhar Bharat.
Let us look at the financials of the company to see if the company has what it takes to sustain the big numbers.
The company’s sales have grown from Rs 81 lacs in FY20 to Rs 10.5 cr in FY25, logging a compound growth of 67%. In H1FY26, sales of Rs 5.3 cr have been logged.
When it comes to EBITDA (earnings before interest, taxes, depreciation, and amortization) the company has staged a turnaround from losses of Rs 32 lacs in FY20 to profits of Rs 1.6 cr in FY25. And in H1FY26, EBITDA of Rs 1.38 cr has been logged.
The net profits have grown at a compounded rate of 159% in the last 5 years. However, investors should note that this triple-digit growth stems from a low base.
| Year | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Net Profit/Cr | -0.01 | 0.00 | 0.02 | 0.02 | 0.02 | 1.14 |
And for H1FY26, profits of Rs 1.39 cr have been recorded already.
The share price of RRP Defense Ltd was around Rs 6 in December 2020, which has climbed to Rs 946 as on 3rd December 2025. A jump of almost 15,667% in 5 years. Rs 1 lac invested in the stock 5 years ago would have been Rs 1.57 cr today.
At the current price, the stock is trading close to its all-time high of Rs 984.
The valuation for the company is sort of a red flag, as the stock is currently trading at PE of a huge 519x, while the industry median is just 35x.
In the annual report for FY25, the management said that the company anticipates steady growth as thermal-imaging and night-vision drone venture is exceptionally promising. Continued government initiatives, technological advancements, and urbanization are expected to create strong opportunities.
#2 One Global Service Provider Ltd: 5-Year ROCE of 48%
Incorporated in 1992, One Global Service Provider Ltd is in the business of healthcare services.
With a market cap of Rs 977 cr, the company is debt free and has a current ROCE of 56%. The 5-Year ROCE of the company has also been an enviable 48%, highlighting the company’s solid performance as far as capital efficiency is concerned.
The company’s promoter holdings were at almost 30% until the end of the quarter for December 2024, which dropped to 15% for the quarter ending March 2025. However, the quarter ending September 2025, this went up to 66.24%. Most of this was held by director Sona V Dhawangale, who increased her holding from 15% to 66.24%.
Looking at the financials, the company’s sales have logged compounded growth of 189% in the last 3 years, from Rs 6 cr inn FY22 to Rs 147 cr in FY25. And for H1FY26, sales of Rs 233 cr have already been recorded
EBITDA, grew form Rs 1 cr in FY22 to Rs 25 cr in FY25 logging compounded growth of almost 193%. And for H1FY26 it was already at Rs 39 cr.
The net profits grew at a compounded rate of 159% from Rs 1 cr in FY22 to Rs 18 cr in FY25, and for H1FY26 profits of Rs 30 cr were recorded already.
The share price of One Global Service Provider Ltd was around Rs 2 in December 2020 and as on 3rd December 2025, it was Rs 530, which is over a 26,000% jump in 5 years. Rs 1 lac invested in the stock 5 years ago would have been Rs 2.65 cr today.
The stock is trading at a PE of 24x, which is less than the current industry median of 38x. The 10-year median PE for the company is 14x which is once again less than the industry median of 29x for the same period.
The reason behind the jump in promoter holdings could be the merger between One Global Service Provider Ltd and Plus Care Internationals Private Limited that was executed by March 2025. Before the merger, One Global Service Provider (formerly Overseas Synthetics) was a textile company dealing in processing and weaving. This merger marked a total exit from that legacy business to a high-growth healthcare model.
The company now operates in Diagnostic & Laboratory Services, including mass screening, pathology, and disease management. Plus Care injected its entire business of diagnostic labs and home sample collection services into the listed entity.
Long term holds or fizzle pop bets?
RRP Defense Ltd and One Global Service Provider Ltd, the two companies we dug into today have shown solid promise when it came to capital efficiency, while keeping operations debt free. Not to forget the stock price gains both have logged in the last 5 years, which could give a strong sense of FOMO to any investor.
The other common factor in both the companies is that both have seen some major changes. Both have pivoted their respective businesses. From textile to Defense for RRP Defense Ltd and Healthcare for One Global Service Provider Ltd. While the former has witnessed a takeover, the latter underwent a merger.
Both companies have also seen swings in promoter holdings, which could be unnerving. One perhaps needs to dig in a lot deeper on the reasons behind such swings and assess the risk of more such swings in future.
The big question now is whether these two companies that just saw a major overhaul, and are backed by solid gains & financials, will be able to sustain this growth in the coming months or years. While their trajectory will be fascinating to watch, at this point in time keeping a sharp eye on them by adding them to a watchlist seems like the way to go.
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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