RITES, Ahluwalia Contracts and 2 smallcap stocks offer up to 30% upside

Investors looking for fundamental picks can consider these four smallcap stocks which offer up to 30% potential upside. Three of these stocks are from the infra space and Axis Securities recommended them as "conviction buys". Meanwhile, Axis Direct suggested SignatureGlobal India, a realty stock. Here's an account on what could drive these stocks:

Kalpataru Projects is a conviction buy for this brokerage based on strong fundamentals. A robust order book is expected to support revenue growth. It stood at Rs 63,287 crore as of December 31, 2025 with new order inflow of Rs 19,546 crore. Management expects full-year order inflows to exceed Rs 25,000 crore with the T&D (Transmission & Distribution) and B&F (Buildings & Factories) businesses being major growth contributors.

(Uttam K Srimal & Shikha Doshi, Axis Securities)

Railway PSU is a conviction buy for potential upside of 24%. In Q3FY26, the company secured over 140 new orders aggregating Rs 1,141 cr, taking the total order book to Rs 9,262 crore and providing strong revenue visibility for the next 2–2.5 years. The export vertical will support revenue growth as the company has secured 2 export orders worth Rs 346 crore. It is also seeing a pick-up in contribution from turnkey Projects to sales growth.
(Uttam K Srimal & Shikha Doshi, Axis Securities)

The company had an order book of Rs 18,680 crore as of December 31, 2025, providing revenue visibility for the next 2.5–3 years. The company reported robust YTD order inflows of Rs 9,562 crore. For FY26, management had guided for order inflows of over Rs 8,000 crore, which has already been achieved, reflecting strong execution. The impact of NGT restrictions weighs on stock the company has revised its FY26 revenue growth guidance downward to 10–15% from the earlier 15–20%.
(Uttam K Srimal & Shikha Doshi, Axis Securities)

Signature Global India recently announced a strategic 50:50 joint venture with RMZ Group to develop a large-scale mixed-use commercial project in Sector 71, Gurugram. Overall, Signature aims to deliver 15% growth for pre-sales and is likely to explore further commercial opportunities. Overall, Signature aims to deliver a 15% growth for pre-sales and is likely to explore further commercial opportunities.
(Eesha Shah, Axis Direct)
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)