India, Sept. 13 -- For investors, topline growth alone does not always show whether a business is becoming more efficient. A company can grow revenue rapidly but still fail to generate proportionately higher earnings if costs rise just as quickly. The more interesting setup is when profit growth clearly exceeds revenue growth, because it can suggest that a larger share of incremental sales is flowing to the bottom line. The following five small and midcap stocks stand out because their latest quarterly profit growth is higher than their sales growth on a year-on-year basis.

Knowledge Marine & Engineering Works Knowledge Marine shows one of the widest gaps between sales and profit growth in the list. Quarterly revenue increased by 138% Yo...