 "129 smallcap stocks rally over 40% in three months")
Shares of small-sized companies are on investors radar, with 129 stocks from the S&P BSE Smallcap index rallying more than 40% in past three months.
10 stocks - SpiceJet, Godfrey Phillips India, Morepen Laboratories, RPG Lifesciences, Lanco Infratech, Dhampur Sugar Mills, TRF, Grauer & Weil, Kellton Tech Solutions and Balaji Telefilms - have become multi-baggers by appreciating more than 100% after reporting a strong set of numbers for the quarter ended September 30, 2015.
At 01:20 PM, the S&P BSE Smallcap index was up 0.30% at 11,592 as compared to 0.38% decline in the S&P BSE Sensex.
Since September 7, 2015, the smallcap index gained 11% against 8% rise in the S&P BSE Midcap index and 2.6% fall in the benchmark index.
10 stocks - SpiceJet, Godfrey Phillips India, Morepen Laboratories, RPG Lifesciences, Lanco Infratech, Dhampur Sugar Mills, TRF, Grauer & Weil, Kellton Tech Solutions and Balaji Telefilms - have become multi-baggers by appreciating more than 100% after reporting a strong set of numbers for the quarter ended September 30, 2015.
At 01:20 PM, the S&P BSE Smallcap index was up 0.30% at 11,592 as compared to 0.38% decline in the S&P BSE Sensex.
Since September 7, 2015, the smallcap index gained 11% against 8% rise in the S&P BSE Midcap index and 2.6% fall in the benchmark index.
Out of 769 stocks from the smallcap index, as many as 430 outperformed the index by gaining more than 12% during the period.
These 430 companies had posted an average 41% year-on-year (YoY) growth in their aggregate net profit in September quarter. Meanwhile, the combined net profit of 762 smallcap companies declined 1.5% on YoY basis.
Shares of the two aviation companies - SpiceJet (up 205% at Rs 68.65) and Jet Airways (89% at Rs 569) have surged more than 80% since September 7, after these companies recorded turnaround results during the quarter due to fall in prices of air turbine fuel (ATF).
"SpiceJet is at least partly driven by lower fuel costs (plus positive sentiment about turnaround). A large proportion of the turnaround benefits are already priced into the stock and the upside might not be too much from here. RPG Life and Balaji could both have significant upsides, said Devangshu Datta, Independent Technical Analyst and Market Expert.
Morepen Laboratories rallied 140% from Rs 11.96 to Rs 28.70 on Friday. The pharmaceutical company reported an over 10-fold jump in net profit at Rs 3.22 crore for Q2FY16, on back improvement in sales revenues. The company said its cash surplus (EBDA) has also shown a significant rise of 49% YoY at Rs 12.74 crore against Rs 8.52 crore in a year ago quarter.
“Our cost reduction efforts coupled with continuous investments in R&D yielded rich dividends for the company as it attained a strong hold in the international markets, which eventually reflected positively on financial front in the current fiscal,” Morepen Laboratories said in a statement.
Lanco Infratech, too, has surged 126% from Rs 2.77 to Rs 6.27 during the period. The company engaged in electric utilities business announced the commencement of power supply to Haryana Discoms from its coal-based 300 Mw unit 2 of Lanco Amarkantak Project in Chattisgarh on Monday.
In general, small caps rally when there are retail investors actively participating in the market. There are some studies that suggest that overall small cap performance is usually better than large-cap. However the risks are large for an investor with a focus on small caps, said Devangshu Datta.
These stocks can go illiquid, the financials are often not well validated, there is little research to back up the investor. I don't have top picks as such - take a good look at the best performers (in terms of returns) in the small cap segment, and remain aware of the greater risks of investing in this segment. Ideally you need to filter stocks for liquidity as well as fundamentals in the small cap segment, he adds. CLICK HERE TO READ FULL CHAT.
| Price on BSE (Rs) | Net profit/loss (Rs crore) | ||||
| Company | 07 Sep,15 | 04 Dec,15 | % chg | Q2FY15 | Q2FY16 |
| SpiceJet | 22.50 | 68.65 | 205.1 | -310.00 | 24.00 |
| Godfrey Phillips | 557.90 | 1629.40 | 192.1 | 32.00 | 50.00 |
| Morepen Labs. | 11.96 | 28.70 | 140.0 | 0.31 | 3.00 |
| RPG LifeScience. | 150.20 | 341.60 | 127.4 | -7.00 | 3.00 |
| Lanco Infratech | 2.77 | 6.27 | 126.4 | -621.09 | 97.32 |
| Dhampur Sugar | 28.15 | 62.35 | 121.5 | -59.41 | -7.04 |
| TRF | 195.60 | 426.50 | 118.0 | -9.28 | 4.14 |
| Grauer & Weil | 15.70 | 33.90 | 115.9 | 9.00 | 14.00 |
| Kellton Tech | 68.20 | 138.30 | 102.8 | 3.13 | 9.57 |
| Balaji Telefilms | 70.55 | 141.40 | 100.4 | -7.58 | 7.29 |
| Arshiya | 25.35 | 50.60 | 99.6 | -110.95 | -85.74 |
| HCL Infosystems | 32.05 | 62.85 | 96.1 | -61.39 | -53.04 |
| NELCO | 55.05 | 107.80 | 95.8 | -0.61 | -0.38 |
| Tanla Solutions | 23.30 | 45.50 | 95.3 | -1.85 | 4.10 |
| Cosmo Films | 139.40 | 271.20 | 94.5 | 4.55 | 21.28 |
| Take Solutions | 104.80 | 201.75 | 92.5 | 13.40 | 25.05 |
| Jet Airways | 300.85 | 568.90 | 89.1 | -235.00 | 133.00 |
| SRS | 13.30 | 25.00 | 88.0 | 16.00 | 17.29 |
| Arrow Coated | 398.90 | 747.00 | 87.3 | 2.00 | 3.00 |
| Rattanindia Pow. | 6.18 | 11.50 | 86.1 | -158.41 | -125.52 |
| SMS Pharma. | 527.25 | 967.00 | 83.4 | 5.00 | 10.00 |
| Kwality | 68.00 | 124.70 | 83.4 | 37.00 | 38.00 |
| Asian Granito | 88.90 | 162.90 | 83.2 | 4.00 | 5.00 |
| Gayatri Projects | 403.50 | 737.25 | 82.7 | 1.00 | 7.00 |
| Trident | 32.60 | 59.25 | 81.7 | 21.00 | 51.00 |
| Minda Inds. | 491.25 | 886.75 | 80.5 | 12.44 | 26.06 |
| Kopran | 43.20 | 77.85 | 80.2 | 3.00 | 2.83 |
| Virtual Global | 5.00 | 8.98 | 79.6 | 0.00 | 1.00 |
| Intellect Design | 158.45 | 283.75 | 79.1 | -17.46 | -7.95 |
| OnMobile Global | 75.35 | 132.70 | 76.1 | -1.21 | 1.26 |
| Electrosteel St. | 2.12 | 3.73 | 75.9 | -99.00 | -201.00 |
| Sh.Renuka Sugar | 7.37 | 12.77 | 73.3 | -83.00 | -233.00 |
| Ajmera Realty | 92.85 | 160.80 | 73.2 | 1.12 | 6.07 |
| Sasken Comm.Tec. | 230.60 | 399.30 | 73.2 | 7.21 | 10.55 |
| Alphageo (India) | 382.90 | 661.75 | 72.8 | -1.70 | -4.40 |
| Jyoti Structures | 10.97 | 18.95 | 72.7 | -69.00 | -157.00 |
| Genus Power | 26.80 | 45.80 | 70.9 | 15.00 | 22.00 |
| Balrampur Chini | 44.55 | 74.50 | 67.2 | -64.00 | -14.00 |
| GP Petroleums | 42.00 | 70.10 | 66.9 | 1.00 | 2.00 |
| Vimta Labs | 64.00 | 106.80 | 66.9 | 1.00 | 2.00 |
| Lloyd Electric | 181.90 | 301.80 | 65.9 | 4.00 | 10.00 |
| Triven.Engg.Ind. | 23.35 | 38.50 | 64.9 | -27.89 | 22.17 |
| Kanoria Chem. | 42.90 | 70.55 | 64.5 | 2.00 | 5.00 |
| KRBL | 144.30 | 236.80 | 64.1 | 84.71 | 79.95 |
| Nectar Lifesci. | 35.10 | 57.55 | 64.0 | 16.00 | 17.00 |
| Force Motors | 1967.35 | 3219.50 | 63.6 | 26.00 | 42.00 |
| Deep Industries | 122.40 | 200.20 | 63.6 | 5.00 | 8.00 |
| Amtek Auto | 29.10 | 47.55 | 63.4 | 74.00 | -158.00 |
| KPIT Tech. | 99.55 | 162.35 | 63.1 | 70.55 | 75.09 |
| Technocraf.Inds. | 152.30 | 245.20 | 61.0 | 17.00 | 22.00 |
| Zen Technologies | 65.60 | 105.45 | 60.7 | -6.00 | -2.00 |
| Country Club Hos | 8.80 | 14.10 | 60.2 | 6.20 | 6.50 |
| Fedders Lloyd | 64.90 | 103.85 | 60.0 | 10.00 | 14.00 |
| RattanIndia Infr | 2.02 | 3.23 | 59.9 | 1.00 | 0.00 |
| Metalyst Forg. | 41.60 | 66.25 | 59.3 | 44.00 | -18.00 |
| Munjal Auto Inds | 69.20 | 110.05 | 59.0 | 11.00 | 4.00 |
| BS | 23.00 | 36.55 | 58.9 | 15.66 | 20.72 |
| Firstsour.Solu. | 26.85 | 42.65 | 58.8 | 61.24 | 61.85 |
| JMT Auto | 60.40 | 95.85 | 58.7 | 2.00 | 3.00 |
| Bodal Chemicals | 28.35 | 44.85 | 58.2 | 18.00 | 23.00 |
| IFB Agro Inds. | 263.00 | 415.90 | 58.1 | 8.00 | 7.00 |
| Navin Fluo.Intl. | 1179.75 | 1863.75 | 58.0 | 10.00 | 23.00 |
| Future Consumer | 14.50 | 22.85 | 57.6 | -14.41 | -31.74 |
| Lumax Auto Tech. | 227.70 | 357.40 | 57.0 | 8.62 | 10.43 |
| M T N L | 14.80 | 23.20 | 56.8 | -834.00 | -730.00 |
| Globus Spirits | 51.15 | 79.80 | 56.0 | 1.00 | 1.00 |
| Madhucon Proj. | 51.25 | 79.65 | 55.4 | 10.00 | 4.00 |
| Mah. Scooters | 950.75 | 1476.50 | 55.3 | 48.00 | 49.00 |
| Vakrangee | 107.45 | 166.70 | 55.1 | 80.07 | 96.17 |
| H F C L | 12.28 | 19.05 | 55.1 | 69.00 | 71.00 |
| Vivimed Labs. | 273.20 | 421.70 | 54.4 | 16.41 | 23.88 |
| Cressanda Solns. | 1.92 | 2.95 | 53.6 | 0.00 | 0.00 |
| ION Exchange | 229.20 | 351.20 | 53.2 | 4.00 | 6.00 |
| EMCO | 20.40 | 31.15 | 52.7 | 1.00 | -7.00 |
| Control Print | 306.40 | 467.60 | 52.6 | 5.00 | 7.00 |
| Bharat Bijlee | 528.00 | 800.50 | 51.6 | -10.00 | 1.00 |
| Vaibhav Global | 377.90 | 572.20 | 51.4 | 24.93 | 12.11 |
| Hikal | 100.50 | 152.00 | 51.2 | 15.00 | 5.00 |
| 8K Miles | 1256.75 | 1894.00 | 50.7 | 4.15 | 8.74 |
| 3i Infotech | 2.88 | 4.34 | 50.7 | -88.33 | -92.31 |
| Oricon Enter. | 39.95 | 60.20 | 50.7 | 7.26 | 0.58 |
| Shalimar Paints | 96.70 | 145.70 | 50.7 | -2.00 | 1.00 |
| Stampede Cap. | 334.20 | 501.80 | 50.1 | 2.58 | 14.71 |
| High Ground | 60.40 | 90.65 | 50.1 | 2.00 | 6.00 |
| Transport Corp. | 212.70 | 318.90 | 49.9 | 21.00 | 23.00 |
| Ashapura Minech. | 43.60 | 65.35 | 49.9 | 50.72 | 45.24 |
| Rajesh Exports | 461.10 | 691.05 | 49.9 | 159.77 | 279.84 |
| Vipul Ltd | 40.20 | 59.95 | 49.1 | -4.00 | 0.00 |
| Essar Ports | 87.00 | 129.70 | 49.1 | 96.10 | 104.53 |
| Saurashtra Cem. | 47.60 | 70.90 | 48.9 | 2.00 | 10.00 |
| Kohinoor Foods | 36.80 | 54.80 | 48.9 | 5.00 | 9.00 |
| Parsvnath Devl. | 18.10 | 26.95 | 48.9 | 12.65 | -24.64 |
| Man Infra | 30.80 | 45.80 | 48.7 | 22.82 | -0.72 |
| Infinite Comp | 148.70 | 220.20 | 48.1 | 27.42 | 27.17 |
| Mahindra Holiday | 286.75 | 422.75 | 47.4 | 25.00 | 29.00 |
| IFCI | 19.15 | 28.20 | 47.3 | 174.00 | 183.00 |
| NIIT | 65.50 | 96.40 | 47.2 | 10.30 | 20.80 |
| EID Parry | 128.15 | 188.25 | 46.9 | 36.25 | -29.94 |
| NOCIL | 38.00 | 55.65 | 46.4 | 13.00 | 18.00 |
| Future Retail | 106.95 | 156.45 | 46.3 | -8.00 | 14.00 |
| Hind.Construct. | 17.95 | 26.20 | 46.0 | 7.00 | 9.00 |
| Titagarh Wagons | 96.40 | 140.70 | 46.0 | 4.93 | -4.44 |
| Lycos Internet | 21.15 | 30.85 | 45.9 | 82.48 | 105.16 |
| Sunil Hitech | 213.20 | 310.50 | 45.6 | 7.00 | 11.00 |
| ITI | 22.05 | 32.05 | 45.4 | -110.00 | -34.00 |
| Fiem Inds. | 482.75 | 701.50 | 45.3 | 11.00 | 13.00 |
| Jubilant Life | 304.60 | 441.70 | 45.0 | -85.82 | 114.09 |
| Sanghi Inds. | 45.25 | 65.40 | 44.5 | 2.00 | 2.00 |
| TajGVK Hotels | 68.25 | 98.35 | 44.1 | 0.00 | -1.00 |
| IVRCL | 6.94 | 10.00 | 44.1 | -230.00 | -327.00 |
| Mirza Internatio | 92.70 | 133.50 | 44.0 | 14.00 | 16.00 |
| Zee Media | 17.20 | 24.75 | 43.9 | -11.53 | -10.83 |
| Manali Petrochem | 23.60 | 33.90 | 43.6 | 13.00 | 17.00 |
| Datamatics Glob. | 45.80 | 65.55 | 43.1 | 12.22 | 4.52 |
| Maxwell Inds. | 43.40 | 61.95 | 42.7 | 1.00 | -6.00 |
| Granules India | 110.55 | 157.45 | 42.4 | 22.08 | 30.98 |
| JMC Projects | 176.60 | 251.10 | 42.2 | 4.00 | 10.00 |
| Orient Green | 10.41 | 14.79 | 42.1 | 1.97 | 4.33 |
| Garware-Wall Rop | 279.70 | 395.70 | 41.5 | 11.00 | 15.00 |
| Heritage Foods | 362.90 | 513.00 | 41.4 | 4.83 | 15.29 |
| Jindal Poly Film | 362.20 | 511.90 | 41.3 | 72.16 | 76.48 |
| Ujaas Energy | 14.41 | 20.35 | 41.2 | 2.00 | 3.00 |
| Welspun Syntex | 97.80 | 138.10 | 41.2 | 13.00 | 13.00 |
| Astra Microwave | 104.60 | 147.65 | 41.2 | 24.00 | 18.00 |
| NCC | 55.20 | 77.80 | 40.9 | -3.16 | 41.20 |
| Singer India | 158.50 | 223.30 | 40.9 | 1.00 | 2.00 |
| Bajaj Hindusthan | 13.16 | 18.50 | 40.6 | -135.00 | -280.00 |
| SQS India BFSI | 678.50 | 953.75 | 40.6 | 7.10 | 10.20 |
| Sequent Scien. | 811.25 | 1135.75 | 40.0 | -21.58 | 2.32 |