SmallCap index hits new peak; Roto, Atul Auto, Wockhardt zoom up to 19%

Smallcap stocks rally today: Shares of small-cap companies were on a roll on Monday with the BSE SmallCap index hitting a new high of 52,843 level, gaining over 1 per cent on the BSE in the intraday. The index surpassed its previous high of 52,542.41, touched on June 25.

At 11:34 AM, the SmallCap index was up 1.33 per cent, outperforming the BSE Sensex and BSE MidCap indices, which were up 0.35 per cent and 0.89 per cent, respectively.

Individually, Roto Pumps, Wockhardt, Nahar Polyfilms, Atul Auto, Indo Count Industries, ION Exchange, Home First Finance Company India, Black Box, and Prime Focus from the BSE SmallCap index zoomed between 10 per cent and 19 per cent.

Shakti Pumps (India), Transformers and Rectifiers (India), Waaree Renewable Technologies, Genus Power Infrastructure, Puravankara, Manorama Industries, Sanmit Infra, and GTL Infrastructure, meanwhile, were locked in the 5-per cent upper circuit with only buyers seen on the counters.

Among these, Roto Pumps hit a record high of Rs 627.35, zooming 19 per cent on the back of nearly three-fold jump in average trading volumes. Roto Pumps is amongst the top-10 global players in the positive displacement pumps. The company, on Sunday, announced the launch of artificial lift downhole pumps in global markets.

The company’s imitative in the field of oil & gas viz. downhole pumps and mud motors would provide opportunities under AatamNirbhar Bharat and also in the global markets. 

"Other initiatives under the renewable energy, i.e. solar pumping system, would provide tremendous business opportunities due to the Government’s focus on usage of alternate energy sources to mitigate climate changes. Besides, the escalating energy prices due geopolitical issues would lead to increased focus on renewal energy; thereby increasing opportunities for the company’s solar pumping project," the management said.

Meanwhile, shares of Wockhardt hit a 52-week high of Rs 809.45, surging 18 per cent as the company is all set to launch its novel antibiotic candidate WCK 5222, or Zaynich, in India by the end of 2024-25, followed by a global launch in 2025-26. The total addressable market for the antibiotic is estimated to be around $25 billion globally.

Zaynich — a combination of Zidebactam and Cefepime — is effective in treating infections caused by drug-resistant pathogens. 

The drug is effective against all major superbugs that have become resistant to almost all antibiotics used today — often referred to as multi-drug resistant (MDR), or extensively drug resistant (XDR) pathogens. Globally, mortality rate in patients infected with MDR superbugs is in excess of 30 per cent.

"Earlier this month, the Clinical and Laboratory Standards Institute (CLSI) granted the drug a susceptibility breakpoint of 64 mg/litre for around 10 gram-negative pathogens. The higher the breakpoint, the more effective a drug is in handling different strains. To put things in perspective, some of the recent antibiotics have a susceptibility breakpoint of 4-8 mg/litre," Wockhardt said in a statement.

Shares of Atul Auto, too, hit a new high of Rs 724.20, soaring 15 per cent on the back of a five-fold jump in average trading volumes. In the past two trading days, the stock has rallied 23 per cent.

Atul Auto manufactures three wheelers (goods as well as passenger segments) under the 'Atul' brand, and spares, components, and allied products. It caters to the demand for passenger, cargo, petrol, diesel, liquid petroleum gas, and electric vehicles.

In the first two months (April and May) of the current financial year 2024-25, Atul Auto’s total sales have jumped 121.5 per cent to 4,023 vehicles as compared to 1,816 vehicles sold in the first two months of FY24.

That apart, shares of Black Box hit a new high of Rs 3975.55, surging 13 per cent in the intraday trade. In the past two trading days, it has zoomed 24 per cent as the management said they are confident of achieving strong performance in the fiscal year 2025 and beyond. The company expects the order momentum to continue, with a healthy pipeline to mature and yield in the coming quarters.

Black Box is a global digital infrastructure integrator offering connectivity and network solutions, data center solutions, modern workplace and cyber security solutions and technology products to businesses globally.

"Although we are experiencing some delays in customer decision making, which has affected our short-term revenue growth, the large order pipeline makes us confident to maintain our growth momentum over the coming period,” the management said in its fiscal 2023-24 (FY24) earnings call.