23 small-cap stocks rally over 100% in four months

Indiabulls Ventures, Venky's, ITI and LT Foods have rallied over 150% during the period

Shares of small-cap companies are on a roll with 23 stocks from the BSE Smallcap index surging over 100% in past four months.

At 12:00 pm; the S&P BSE Smallcap index was up 0.35% at 15,434, hitting a new high of 15,486 during intra-day trade on Wednesday.

Since December 26, from their recent lows, the BSE Smallcap has outperformed the market by 33.6% as compared to 29% rise in Midcap index and 16.7% gain in the benchmark Sensex.

Out of 772 stocks from the BSE Smallcap index, less than half or 305 stocks outpace the index by gaining more than 34% during the period.

Of these 305 stocks 23 scrip have seen its market value more than doubled in past four months. The market price of another 142 stocks appreciated between 50% and 99%.

Venky’s India, ITI, LT Foods, Kolte-Patil Developers, Future Lifestyle, Indiabulls Real Estate, Indiabulls Ventures, Tata Metaliks and Lumax Industries have among those which rallied more than 100%.

The strong inflows from the overseas and domestic investors led the rally in equity markets. Foreign portfolio investors (FPIs) have made net inflow of Rs 40,336 crore, while domestic mutual funds put in net amount of Rs 21,856 crore in Indian equities, between December 27, 2016 and April 25, 2017, the stock exchange data shows.

Among the individual smallcap stocks, Indiabulls Ventures has rallied nearly 500% from Rs 19.85 to Rs 118.30.

The board of the Indiabulls Group Company, at its meeting held on April 21, 2017 had approved preferential offer & issue of 47.3 million equity shares at an issue price of Rs 94.70 per equity share, for cash consideration, to Tamarind Capital Pte Ltd, a company incorporated in Singapore.

On April 7, 2017, the board had approved preferential issue of 38.86 million equity shares at an issue price of Rs 58.40 per equity share to Cinnamon Capital Limited, a foreign portfolio investor. Indiabulls Ventures said it raise money to augment the long-term resources of the company meeting funding requirements for its business purposes.

Indiabulls Real Estate, the other Indiabulls Group Company, has too seen its market value surged 131% to Rs 161 during the period. The real estate developer on April 17 had announced a business restructuring plan that will see the company splitting itself into two parts.

A commercial entity wherein the company hopes to get a strategic investor in place to further develop the business and target doubling of rents in four years and a residential entity, which targets to cut its debt by more than half in two years, eventually reaching a zero debt/positive net cash position.

Kolte-Patil Developers, the other real estate company, has zoomed 141% from Rs 81.25 to Rs 196. The company today said it has signed its largest private society redevelopment project till date, having a plot area of 15,035 square meters.

“Our focus in Mumbai is on generating strong ROCE’s and reducing our working capital cycle. We have a diversified portfolio at strategic locations, and all projects are of an optimal size enabling quick turnover. Our Mumbai foray will facilitate PAT expansion and reduce working capital cycle for the Company while providing synergies to the existing Pune operations,” said Gopal sarda, CEO, Kolte-Patil Developers.

Company	26/12/2016	26/04/2017	% chg
Indiabulls Vent.	19.85	118.25	495.7
Venky's (India)	412.35	1318.40	219.7
ITI	43.35	109.75	153.2
LT Foods	26.10	65.95	152.7
Arshiya	27.90	69.20	148.0
Kolte Patil Develop	81.25	196.00	141.2
National Fertilizer	33.40	79.00	136.5
Future Lifestyle	120.60	282.30	134.1
Indbulls Real Estate	69.55	160.70	131.1
Tata Metaliks	312.75	696.10	122.6
S&P BSE Smallcap	11548.74	15434.00	33.6
S&P BSE  Midcap	11505.83	14828.00	28.9
S&P BSE Sensex	25807.10	30120.00	16.7
Price on BSE in Rs at 12:00 pm