Small and micro-cap investors always look for growth stocks that have the potential to generate massive gains in the short-term and steady returns in long-run. Though the returns from small-cap stocks are higher than the large-cap stocks, the risk of losing the money is equally high. Analysts suggest closely looking at various aspects of the company before taking any position – the experts generally give importance to the company’s revenue growth potential along with their future fundamentals. Today we look at Sify Technologies and eGain Communications.
Sify Technologies
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Sify Technologies(NASDAQ:SIFY) stands among those companies that have substantially enhanced investor’s returns; SIFY shares soared 159% in the last twelve months – driven by increasing demand for Data Centre centric IT services. The stock currently trades around $2.20 per share with the market capitalization of $390 million.
Its revenue soared 12% in the latest quarter, while active management and improving margins turned the double-digit revenue growth into 62% increase in net earnings.
Mr. Kamal Nath, the CEO, said, “Our continuous pitch of integrated IT Services and Telecom services, both aligned to Cloud and Digital Consumption model, have been significant differentiators for Sify, as more clients migrate to the Cloud platform and adopt Digital model of doing business.”
The company expects to extend the momentum into the following years, based on higher investments in skills and resources enhancement, which will get monetized over time. Besides from share price appreciation, SIFY has been supporting investor’s returns through cash dividends. Its dividend yield stands around 0.84%.
eGain Communication
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eGain Communication Corp (NASDAQ:EGAN), a leading provider of cloud customer engagement solutions, has impressed investors with its SaaS revenue model. Its stock price soared 313% in the last year alone. The businesses and public organizations move towards cloud have been enhancing demand for eGain products.
Its SaaS revenue jumped 24% year on year to $7.7 million in the latest quarter. eGain’s recurring revenue rose 14% to $12.6 million, while total revenue grew 13% year over year in Q2. The company anticipates generating double-digit revenue growth in FY2018. eGain share price currently stands around $8 – which is the highest level in the last 52-weeks.
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Ashu Roy, the eGain CEO, commented, “ We are pleased with the overall strength of our business and the customer activity we are seeing, which included a mixture of new and expansion opportunities and an increased number of customer migrations to the cloud during the quarter.”
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