A New Twist on a Familiar Industry: Why This Lab-Focused Microcap Could Be a Hidden Gem

This stock we are pitching today is dropping fast for the wrong reasons and now has a P/E of near 5x. This is despite being a growth company with the lowest risk it has had in years. However, we believe the P/E could eventually expand to over 20x, setting us up for a rare multibagger move of at least 300%.

Sometimes the best opportunities in microcap investing aren’t buried in futuristic tech or obscure biotech patents. Sometimes, they’re hiding in plain sight.

One such company we are very familiar with and extremely bullish on is a global supplier of specialized infrastructure to laboratories across healthcare, pharma, education, and government markets. Think high-spec workspaces, ventilated equipment, and safety cabinets—the backbone of any research environment. This isn’t just nuts-and-bolts stuff. These are essential tools in labs that deal with everything from cancer research to vaccine development to clean energy.

What makes this one especially compelling is the nature of its revenue stream. While some lab suppliers are vulnerable to shifts in federal science funding, this company makes products purchased as direct capital expenditures. That means it’s largely shielded from the kind budget cuts going on right now, targeting  “indirect” costs, like admin stuff.

So, why are we excited now? Because after years of flying under the radar, this company is entering a whole new phase of growth.

The Turnaround That Turned Into a Launchpad

A few years ago, a new CEO stepped in to streamline operations, cut out low-margin products, and revamped the entire sales model by no longer selling directly to its customers. That meant saying goodbye to competing with distributors and instead empowering them—resulting in better channel relationships and cleaner execution.

The impact? The company has now posted roughly nine straight quarters of earnings growth, a rarity for a business that was once known for clunky, inconsistent financial results and for losing money.

But this story doesn’t end with a turnaround. That was just the beginning.

The company recently acquired a respected U.S.-based manufacturer of high-end lab safety infrastructure, dramatically expanding its product suite and creating new cross-sell opportunities across its global base. The revenue from the deal could be worth about a quarter of the   company’s annual sales (pre-acquisition)..

So, What’s It Worth?

Even with clear momentum and a major acquisition now contributing to growth, the stock still trades around 5x trailing non-GAAP EPS—a level that suggests the market hasn’t caught up to the story. With a healthy backlog, expanding margins, and a management team actively buying back shares, there’s a case to be made for a re-rating.

If the market begins to see this not as a low-growth manufacturer but as a category leader in a fragmented space, the multiple could move closer to 20x or even 25x. That kind of revaluation alone sets the stage for a potential multibagger— with no crazy assumptions needed.

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