Smallcap Stocks Show Resilience Amid Market Downturn
Investors in the smallcap segment experienced mixed fortunes on September 9, as the BSE smallcap index dipped by 0.65%. Despite this overall decline, several smallcap stocks delivered remarkable returns, with some gaining over 10%. In this article, we will delve into five smallcap stocks that stood out in today’s trading session, highlighting their performance, reasons for their gains, and key financials.
Top Gaining Smallcap Stocks
1. Deep Industries
Share Price: Achieved a day’s high of ₹476.6, marking a 20% increase.
Trading Volume: 7.6 million shares traded on BSE and NSE.
Market Capitalization: ₹3,050 crore.
Reason for Rise: Deep Industries secured a significant order worth ₹1,402 crore from Oil and Natural Gas Corporation (ONGC) for production enhancement operations over a 15-year period on their mature assets in Rajahmundry. This is the largest project awarded to the company thus far.
Recent Quarterly Results: For the June quarter, Deep Industries reported revenue of ₹1,196 crore and a net profit of ₹304 crore, reflecting its strong operational performance in the energy sector.
2. Syncom Formulations
Share Price: Reached a high of ₹27.3, with an 18% rise.
Trading Volume: 80 million shares traded on BSE and NSE.
Market Capitalization: ₹2,557.74 crore.
Reason for Growth: The company launched several new nutritional products catering to diverse consumer needs, anticipating increasing demand. They also plan to ramp up marketing efforts across various platforms to enhance customer outreach.
Recent Quarterly Results: In its latest quarterly report, Syncom Formulations recorded revenue of ₹881 crore, yielding a net profit of ₹76.2 crore, indicating a steady business trajectory in the pharmaceuticals sector.
3. Renaissance Global
Share Price: Achieved a high of ₹132.7, up by 15%.
Trading Volume: 3.7 million shares traded on BSE and NSE.
Market Capitalization: ₹1,257 crore.
Reason for Rise: The surge in share price was attributed to heavy trading volume, with shares climbing nearly 40% over the past month, driven by bullish investor sentiment.
Recent Quarterly Results: In the most recent quarter, Renaissance Global reported total income of ₹3,015 crore and a net profit of ₹138 crore, showcasing robust performance in the diamond and jewelry sector.
4. Manoj Vaibhav Gems and Jewellers
Share Price: Reached a high of ₹285, an increase of 16.6%.
Trading Volume: 2.7 million shares on BSE and NSE.
Market Capitalization: ₹1,346 crore.
Reason for Growth: The company’s annual report for FY2024 indicated profits, revenues, and EBITDA growth. Additionally, it reported a decrease in the net debt-equity ratio, and management is focused on expanding its store presence in Andhra Pradesh and Telangana, alongside entering e-commerce markets.
Recent Quarterly Results: For the June quarter, total income was ₹539 crore, which translated to a net profit of ₹21.8 crore, reflecting strong operational momentum in the jewelry market.
5. Balu Forge
Share Price: Hit a high of ₹866, up 12.5%.
Trading Volume: 2.8 million shares on BSE and NSE.
Market Capitalization: ₹9,051 crore.
Reason for Uptrend: The company recently expanded its production capacity by acquiring assets capable of producing an additional 14,000 tonnes per annum. This capacity expansion is projected for commercialization by Q2 FY25, targeting a total of 32,000 tonnes per annum for precision-engineered components.
Recent Quarterly Results: In its latest quarterly performance, Balu Forge reported total income of ₹1,242 crore with a net profit of ₹241 crore, underscoring its strong position in the industrial equipment market.
Conclusion
Today’s trading session highlights the resilience of certain smallcap stocks amidst market pressures. The strong performance of companies like Deep Industries, Syncom Formulations, and others illustrates the dynamic nature of the stock market and the potential for significant returns in the smallcap sector.
