Lately, I’ve been buying a sub-£1.50 UK stock for my ISA. And no, not Lloyds. Instead, it’s a small industrial stock with soaring revenues, surging profits, and a rapidly rising share price. To my mind, it comes with a ton of potential.

This stock’s on fire

The company I’ve been investing in is Hardide (LSE: HDD). It’s a small British business that specialises in advanced surface coating technology designed to provide protection in extreme industrial environments.

It’s had a lot of success over the last year or so with a customer in the energy space, winning a number of contracts that have pushed its revenues and profits up significantly. These have sent its share price flying – over 12 months it’s up about 1,300%.

Why I’m buying now

Now, I first bought shares a few months ago near 92p. Last week, I also bought more at 113p.

Why? Because the company released a year-end trading update last week and it was very encouraging. It told us revenue for the year ended 30 September more than doubled to £13.5m and said profit before tax would be ahead of expectations at £4.9m (versus £0.2m for the prior year).

Additionally, we heard the company has won work in the Aerospace sector. It’s also testing its products with a major customer in the Middle East as well as another in the semiconductor space.

In terms of guidance, the company’s expecting “significant” growth this financial year. Looking further out, it’s planning to double its revenues again over the next two to three years.

Hardide still looks cheap

Another reason I bought is that the stock still looks good value, despite its huge rise over the last year. With analysts expecting earnings per share of 7.7p for this financial year, the forward-looking price-to-earnings (P/E) ratio is near 15.

Given that earnings are projected to rise around 43% this year, the price-to-earnings-to-growth (PEG) ratio’s only around 0.35. That tells us that the stock’s very cheap relative to its growth.

Acknowledging the risks

Now, I’ll point out that my position here is still small. Even after two purchases, it’s still only about 1% of my individual stock portfolio.

I’ve sized it like this because we’re talking about a micro-cap company with a market-cap of less than £100m and a history of generating losses. Ultimately, it’s high on the risk spectrum.

But I have a feeling the company’s entering a new era in terms of growth and profitability. Although, at the end of the day, I can’t be 100% sure – the pick-up in performance could be a short-term phenomenon.

I’m excited about the potential here though. I believe the stock’s worth a look at current levels.

Should you invest £5,000 in Hardide right now?

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Edward Sheldon owns shares in Hardide.