Kitex Garments and 4 other stocks with CWIP twice their total assets to keep under radar

Synopsis: Companies with CWIP far exceeding their fixed assets may be signalling major expansion. This article highlights five small and microcap stocks where ongoing capex is 2–7x their asset base.

In this article, we will dive into some of the small and microcap companies whose Capital Work in Progress (CWIP) has increased to more than double their existing fixed assets, which is basically one of the earliest signs of a heavy ongoing capex and a potential future scale-up.

These firms, typically, are profoundly involved in significant expansion cycles and still have large projects that are yet to be capitalised on the balance sheet. A very high CWIP, however, is not a sure growth driver, but it may indicate getting new capacity, fresh business lines, or relevant strategic investments th