3 Fundamentally Strong Beaten Down Smallcap Stocks

#2 Enviro Infra Engineers

Enviro Infra Engineers is a leading infrastructure company specialising in the design, construction, operation, and maintenance of water and wastewater treatment plants (WWTPs) and water supply scheme projects (WSSPs) for government authorities across India.

The company's expertise spans sewage treatment plants (STPs), sewerage schemes (SS), common effluent treatment lants (CETPs), water treatment plants (WTPs), pumping stations, and water supply pipelines.

The company launched its IPO in November 2024. The oversubscription was 90 times.

The stock of the company has fallen a solid 43% from 52-week highs. On the financial front, Enviro Infra Engineers reported revenues of Rs 2,500 m vs Rs 2,475 m YoY. The net profits of the company were better placed at Rs 421 m vs Rs 367 m YoY.

The company has been winning sizeable orders lately.

In March 2026, Enviro Infra secured five projects, marking a strong closure to the financial year and further strengthening its growth momentum.

The combined value of these orders was Rs 14.81 bn and represents a meaningful addition to the company's order book and improves revenue visibility for the coming periods.

A key highlight of these wins was Enviro Infra Engineers' entry into the Battery Energy Storage System (BESS) segment within the renewable energy space.

While the company has already been active in the B2B segment, these new projects from NTPC represents a step-up in scale, showing the company's growing ability to execute large and complex energy projects.

#3 Saksoft

Next on our list is the stock of Saksoft.

Saksoft is an IT services company specialising in digital transformation solutions. Founded in 1999 and headquartered in Chennai, India, it has evolved from a niche financial software player into a broad technology partner for enterprises worldwide.

The stock has a market cap of around Rs 20 bn.

For the third quarter ending December, Saksoft reported revenues at Rs 2,500 m, showing a growth of around 11% YoY. The EBITDA stood at Rs 450 m, which grew by around 19% YoY, with the EBITDA margins of 18.1%.

The net profit for the quarter stood at around Rs 290 m, which grew by 7% YoY, whilst the PAT margins stood at 11.57%. The net profit for the quarter was after making a onetime exceptional provision of Rs 48.6 m towards the new labour code requirements.

Moving ahead, Saksoft is making progress as far as AI is concerned. In the logistics segment, the company secured a multi-year digital transformation engagement with a leading US-based carrier focused on enterprise modernisation, AI adoption and cost optimisation.

In the commerce vertical, the company has partnered with a leading technology distributor to establish a joint AI innovation lab, enabling AI-driven initiatives across sales, IT and finance functions with a clear path from pilot programs to scaled implementation.

The company is steadily progressing towards its 2030 goal of US$ 500 m in revenues.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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