Tariffs, tumbles & turnarounds: Three smallcap stocks to watch amid global trade jitters

With the US economy at risk of slowing, the knock-on effects could be felt far and wide—including in India. 

For investors, the smarter play is to sidestep the noise and focus on businesses that can thrive through volatility. 

The recent market pullback has made a few of them more affordable—and these three stand out.

DB Corp Ltd: Old-school print, new-age thinking

DB Corp, one of India's leading newspaper companies, might not scream "growth stock" at first glance. After all, we live in a digital world, and print media has been losing ground for years.

But, DB Corp is adapting. They've built a news app that's already a front-runner among Hindi and Gujarati users. Despite industry-wide challenges, DB Corp has outperformed peers by recording growth in both circulation and ad revenue.

Even without the recent election-driven boost, it is clocking steady mid-single-digit growth—driven by ad spends from education, healthcare, real estate, and other key sectors.

Financially, the company is in a healthy spot:

• It has more cash than debt (net cash equals 19% of its market cap).
• Strong return ratios (above 20%).
• A generous dividend payout (averaging 60% over the past three years) and a solid 5.5% dividend yield.
• The stock has dropped over 40%, making valuations attractive.
• And interestingly, the promoters have been buying shares from the open market - a vote of confidence.

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Kovai Medical Center & Hospital: Healing and growing

Kovai Medical Center, a Coimbatore-based hospital, is doing more than just treating patients.

With satellite centres nearby and even a medical college under its wing, this is a healthcare company with strong roots - and serious growth ambitions.

The best part? Healthcare doesn't get tossed around by global politics. Tariffs or no tariffs, people still need hospitals. And, the demand will only grow.

Kovai has become one of the top names in organ transplants and is now expanding to Chennai. This reduces the risk of relying too much on one location and opens the door for future growth - especially with India's medical tourism on the rise.

Here's what's working in its favour:

• Return ratios above 22%.
• Low debt levels (a comfortable debt-to-equity ratio of 0.43).
• The stock has fallen 14% from its 52-week high, with promoters picking up shares recently at prices between ₹5,000 and ₹5,895.

Also read: Is this sector the ultimate defence against markets crashes and economic turmoil?

BLS International: Your visa, their business

BLS International has carved out a niche in the global visa processing space. It operates in over 70 countries around the world.

Only about half of all visa processing is currently outsourced, which means there's still a lot of room for growth for the company.

But, BLS isn't stopping there. It's also building a strong digital services arm in India, offering a range of solutions to citizens and businesses at the grassroots level.

Financially, they're in a decent shape:

• Strong operating profit growth - up 78.3% in just nine months.
• High return ratios (above 25%).
• A debt-light balance sheet.
• And, a flexible business model that's shifting from partner-run to self-managed in many locations.

Of course, there are a few risks - like changes in visa rules by different governments, and how well the company handles its new acquisitions.

But for now, the numbers look promising.

Parting thoughts

A quick reminder: these names are simply ones to watch—not investment recommendations. Today’s discussion isn’t a call to action, nor does it reflect a definitive view on any stock. Like all businesses, each of these companies carries its own risks, and investors should always do their due diligence.

We’re not in the game of predicting who wins the next round of trade turmoil or political shake-ups. Instead, we’re looking at strong, well-managed companies with the resilience to weather both good times and bad.

These may not be the flashiest tickers on the board—but with solid fundamentals, financial strength, and long-term potential, they stand out in a market that’s recently corrected.

Add them to your watchlist—and, as always, happy investing!

Also read: Can Infosys weather this storm better than peers?

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com