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The benchmark indices have seen a rise of nearly 17 per cent since early September till date, as the gush of liquidity saw around $6 billion getting pumped into the markets. Besides fuelling a rise in the frontline stocks, 91 stocks that were quoting below their face value have seen a spectacular rise with gains ranging between 3 – 520%.
At the top of the table is dyes and pigments-maker, Kiri Industries, which has seen a surge of 515% to Rs 59.9 as on December 05 from its August low. Of these 91 scrips, five stocks have appreciated between 200 – 280%, while 12 counters have logged gains in the range of 100 – 200%, data suggests.
Ravi Shenoy, assistant vice president (mid-cap research), Motilal Oswal Securities suggests that post the up move in the large-and the mid-cap, the rally has now spread to these stocks. However, he does not rule out an element of speculation that has seen stock prices of such stocks zoom.
“A lot of public sector (PSU) banks and capital goods counters are trading below their book value. These stocks will be a safer bet to play an upside in the markets. Having said that, I feel one can stay invested in these penny stocks that have seen a meteoric rise till the rally lasts with a strict trailing stop loss,” he advises.
Points out Kishor Ostwal, CMD, CNI Research: “Kiri Industries is an operator driven stock and has run up without fundamentals backing it. I think retail investors are returning to the market and are picking up a number of small-cap stocks.”
“I believe that going ahead, the Nifty can touch 6,500 – 7,000 and in the process, there will be huge demand for mid-and small-cap stocks as valuation-wise, large-cap stocks will keep on becoming expensive. Once that happens, market participants will shift focus to such stocks. Despite the run-up seen in these counters, I feel one can still retain these stocks for some more upside,” he adds.
| SPECTACULAR SHOW | ||
| Price as on Dec 05 | Chg (%) * | |
| Kiri Industries | 59.90 | 515.62 |
| Secure Earth Tech | 23.10 | 279.93 |
| Sudar Industries | 24.55 | 252.73 |
| Filmcity Media | 1.24 | 235.14 |
| Tavemier Resources | 20.95 | 222.31 |
| Pal Credit & Capital | 1.68 | 200.00 |
| Safal Securities | 5.61 | 195.26 |
| Exdon Trading Company | 10.02 | 177.56 |
| C J Gelatine Products | 15.05 | 156.39 |
| Tirupati Inks | 10.01 | 140.05 |
| Alchemist Corporation | 20.35 | 136.90 |
| Jindal Cotex | 17.25 | 132.79 |
| Orient Breverages | 20.50 | 127.78 |
| Sterling Green Woods | 10.93 | 123.06 |
| SSPDL | 12.85 | 120.79 |
| Santowin Corp | 1.03 | 119.15 |
| Fortune Int | 12.39 | 113.99 |
| Marvel Capital & Fin | 12.64 | 110.67 |
| * % change since 28 August 2013 | ||
| Data compiled by BS Research bureau | ||
