SmallCap index hits new high; Surya Roshni, Brightcom up over 50% in 1 mth

In the past one month, the S&P BSE Smallcap index has gained 4.8 per cent, as against a 4.6 per cent rise in the S&P BSE Midcap index and a 2.1 per cent rise in the S&P BSE Sensex

Shares of smallcap companies were on a roll on Monday as the S&P BSE SmallCap index outperformed the benchmark indices. The index was up 1.4 per cent at 28,618 points and hit a new high on the BSE after a strong rally in sugar, textiles, chemicals and iron & steel products stocks. In comparison, the S&P BSE Sensex and the S&P BSE Midcap index were up 1 per cent each at 11:43 am.

Among individual stocks, DCM Shriram, Balrampur Chini Mills, Triveni Engineering, Dalmia Bharat Sugar and Industries (DBSIL) and Uttam Sugar Mills gained up to 15 per cent on the BSE in Monday’s intra-day on the back of heavy volumes on record sugar exports and healthy outlook.

India's sugar export rose 20 per cent to an all-time high of 7.1 million tonne in the 2020-21 marketing year-ended September 2021, on the back of better demand and financial assistance from the government, industry body ISMA said on Friday. Sugar exports stood at 5.9 million tonne in the 2019-20 marketing year (October-September), PTI reported.

In the past one month, the S&P BSE SmallCap index has gained 4.8 per cent, as against a 4.6 per cent rise in the S&P BSE MidCap index and 2.1 per cent rise in the S&P BSE Sensex.

Within the small-cap pack, Surya Roshni, Dish TV India, Cantabil Retail India, Man Infraconstructions, Brightcom Group, Gujarat Alkalies, Thirumalai Chemicals and Patel Engineering rallied between 50 per cent and 81 per cent on the BSE during the period.

Shares of Surya Roshni, for instance, hit a new high of Rs 860, up 4 per cent on the BSE in intra-day trade today, on strong growth outlook. In the past 12 trading days, it has rallied 31 per cent after a foreign portfolio investor bought nearly 1 per cent stake in the company via open market.

On September 17, 2021, Employees Retirement System of Texas - Self Managed Portfolio had purchased 427,789 equity shares or 0.79 per cent stake in Surya Roshni at a price of Rs 720.83 per share on the NSE via bulk deal, exchange data shows. The name of the seller could not be ascertained immediately.

In the past one month, the stock has zoomed 67 per cent as compared to a 2.2 per cent rise in the Nifty50 index. Surya is the second-largest manufacturer of steel pipes (contributes 67 per cent to EBITDA) and also the second-largest LED manufacturer in India.

Last month, the company had said it has obtained order amounted to Rs 41.22 crore (excluding GST) for implementing of smart LED Street Lights and installation of centralized monitoring system with operation and maintenance from Greater Noida Industrial Development Authority (GNIOA).

The company’s strong order book of Rs 847 crore for API coated pipes as of Q1FY22 will be one of the key growth catalysts. The commissioning of the 72,000 MTPA capacity for large dia section pipes (up to 300 X 300 mm) with direct forming technology (DFT) at Gwalior unit will also aid the growth momentum.

Meanwhile, shares of Brightcom Group (formerly Lycos Internet) were locked in the 5 per cent upper circuit for the sixth straight trading day, at Rs 64.45, on the BSE. The stock of the information technology (IT) software products company has zoomed 81 per cent in the past one month.

On September 16, 2021, the company had announced the allotment of 140.15 million equity shares to foreign portfolio investors (FPIs) and other investors through a preferential allotment at price of Rs 37.77 per share. The board had also decided the allotment of 15 million warrants at Rs 37.77 per share, convertible into equal number of equity shares on a preferential basis, to Shankar Sharma.

COMPANY	LATEST	ONE-MONTH BEFORE	GAIN(%)
Brightcom Group	64.45	35.65	80.79
TGV Sraac	60.75	35.15	72.83
Cantabil Retail	620.00	369.15	67.95
Surya Roshni	858.45	514.75	66.77
Gujarat Alkalies	735.50	454.25	61.92
Zee Media	15.34	9.50	61.47
Man Infra	112.30	70.15	60.09
Dish TV India	20.20	13.21	52.91
Thirumalai Chem.	306.90	200.70	52.91
Patel Engineerin	24.05	15.75	52.70
Jindal Worldwide	93.45	62.60	49.28
DCW	52.40	35.15	49.08
Tejas Networks	543.05	368.70	47.29
Manali Petrochem	131.95	89.75	47.02
SEAMEC Ltd	1223.10	841.35	45.37
Reliance Infra.	102.15	70.50	44.89
Olectra Greentec	458.25	316.70	44.70
Reliance Capital	21.35	14.85	43.77
HLE Glascoat	6851.00	4801.15	42.69
Zen Technologies	217.95	153.75	41.76