Small-cap firms outperform Sensex, big peers

THIRD QUARTER ROUND-UP

Small-cap companies, constituents of the BSE small-cap index, outperformed the Sensex as well as mid-cap companies in sales growth during the quarter ended in December 31, 2006.

From the small-cap category, as many as 213 companies posted an aggregate sales growth of 45 per cent compared with 35 per cent and 23 per cent reported by the Sensex and mid-cap firms respectively.

In terms of growth in bottom line, small-cap companies outperformed the Sensex but underperformed mid-cap firms. Small-cap companies have posted a robust combined net profit growth of 81 per cent compared with 43 per cent by the Sensex stocks. Mid-cap companies logged a scorching 92 per cent profit growth during the quarter.

The aggregate net profit of these 213 small-cap companies increased to Rs 1,646.53 crore (Rs 907.75 crore) during the quarter. Of this, 45 small-cap companies' net profit more than doubled and 28 firms' rose in the range of 50 to 100 per cent.

Eleven companies turned around with a net profit of Rs 82 crore against a net loss of Rs 72 crore, while five loss-making companies reduced their losses from Rs 258 crore to Rs 156 crore.

Gabriel (Rs 59.77 crore), Country Club India (Rs 13.12 crore), Shaw Wallace (Rs 60.37 crore) and NCL Industries (Rs 9.26 crore) have witnessed a ten-fold rise in bottom line, while Nava Bharat Ventures, Ceat, BSEL Infrastructure, Walchandnagar Industries, KS Oils, STC India, Aurionpro Solutions and KLG Systel achieved a mind-boggling net profit growth between 400 per cent and 1000 per cent each.

Asian Electronics, Silverline Technologies, Godawari Power and Ispat, KEI Industries and Genus Overseas Electrical registered more than 100 per cent growth in sales income.

However, 42 companies reported a decline in their bottom line in the quarter under review, while as many as 10 slipped into the red during the quarter.

The companies that ran into losses include Tata Metaliks, Escorts, Thirumalai Chemicals, Thiru Arooran Sugars, Rajshree Sugar, Ugar Sugar and Mawana Sugars.