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5 smallcap stocks outshine bear markets, 2 of them hit new 1-year high

RBI will announce the country's December 2022 monetary policy on Wednesday for FY23.  (REUTERS)Premium
RBI will announce the country's December 2022 monetary policy on Wednesday for FY23. (REUTERS)

  • These stocks were Puravankara, TCNS Clothing, Ugar Sugar Works, Equitas Small Finance Bank, and Punjab & Sind Bank. These five stocks have recorded a strong rally between 9% to a whopping 17% in the early deals. 2 of them have even clocked a new 52-week high.

While broader Indian markets continued on a bearish tone on Tuesday ahead of RBI's monetary policy outcomes, however, this was not the case with smallcap stocks. Although, on BSE, the smallcap index traded between flat to marginally up, there was a list of five stocks that outrun markets. These stocks were Puravankara, TCNS Clothing, Ugar Sugar Works, Equitas Small Finance Bank, and Punjab & Sind Bank. These five stocks have recorded a strong rally between 9% to a whopping 17% in the early deals. 2 of them have even clocked a new 52-week high.

Currently, BSE SmallCap traded flat at 29,986.16. The index crossed over 30,000 mark in the opening as it touched an intraday high of 30,037.51. The majority of the stocks were in the green in this basket.

However, Sensex plunged by over 255 points or 0.41% to trade at 62,578.87. The benchmark has dropped to an intraday low of 62,390.07. Broadly, the markets witnessed a selloff across baskets with IT and metal stocks being the worst hit.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, Two trends stand out in the current economic scenario. The US economy continues to be strong as reflected by the jobs data, labor market conditions, and ISM services. But these positive numbers are viewed by the market with concern since this strong scenario might persuade the Fed to continue to be hawkish. The Indian macros indicate steady improvement with buoyant tax collections, impressive credit growth, and declining crude. Partly the market resilience in India comes from retail optimism and DII investment. This is likely to continue despite the elevated valuations."

The Geojit strategist suggests buying on dips strategy has worked well this year and investors can continue with the strategy."

RBI will announce the country's December 2022 monetary policy on Wednesday for FY23. 

Here's how the above-mentioned five smallcap stocks performed on Tuesday:

1. Puravankara:

Puravankara is one of India's largest real estate developers headquartered in Bangalore, with over 60 properties across 9 cities.

The stock earmarked over 100 mark and is currently over 3 months high.

On Dalal Street, the stock rose by nearly 17% so far in the early deals with an intraday high of 113.30 apiece. At the time of writing, the stock traded at 111.60 apiece up by 15.23% on BSE. Its market cap is around 2,642 crore. This would be the second consecutive day rally of Puravankara shares.

The last time Puravankara shares were above 100 mark was on September 23, 2022.

From its 52-week low of 77.90 apiece, which was recorded in March last year, the stock has risen by at least 45.4% as of now.

2. TCNS Clothing:

This small-cap has jumped by at least 9.80% so far in the early deals with shares hitting an intraday high of 624 apiece.

Currently, the shares are traded at 613 apiece up by 44.70 or 7.87% on BSE. The company's market cap is a little over 3,783 crore.

From its 52-week low of 493.65 which was recorded on June 20, 2022, the stock has climbed by more than 26% to date.

TCNS Clothing is India's leading women's branded apparel company. TCNS Clothing operates under three brands W, Aurelia, and Wishful.

3. Ugar Sugar Works:

Ugar Sugar Works is a multi-bagger with gains in the quantum of triple-digit in percentage terms in just a year. On Tuesday, the stock hit a new 52-week high of 99 apiece on BSE.

Overall, in the early deals today, the stock has skyrocketed by as much as 9.82% on Dalal Street. Currently, the stock traded at 96.50 apiece up by 7.04% on BSE. Its market cap is over 1,075 crore.

A year ago on December 6th, the stock was near 26 levels. Since then, the stock has skyrocketed by a whopping 275% to date on BSE.

Ugar Sugar Works is the flagship organization of the Shirgaokar Group of Companies. With over 75 years of experience, the company is involved in manufacturing white crystal sugars.

4. Punjab & Sind Bank:

This government-backed bank also touched a new 52-week high of 27 apiece in the early deals on BSE. Overall, the stock has jumped by 7.9% on the exchange.

Currently, the bank's shares are trading at 26.85 apiece up by 7.19% on BSE. Its market cap is around 18,198 crore.

In a year, the small-cap stock has jumped nearly 67% on BSE. Noteworthily, from its 52-week low of 12.50, the stock has emerged as a multi-bagger with gains of at least 116% on the exchange.

In Q2FY23, the bank posted a net profit of 278 crore rising by 27% due to a decline in bad loans. A year ago in Q2, the bank's net profit was around 218 crore. Meanwhile, total income stood at 2,120.17 crore --- increasing from 1,974.78 crore in Q2FY22. Gross NPA improved to 9.67% by end of Q2FY23 compared to 14.54% in Q2 of FY22.

5. Equitas Small Finance Bank:

The SFB has climbed by over 9% with an intraday high of 60.90 apiece on BSE. The stock witnessed strong buying and traded just a couple of rupees away from its 52-week high of 63.70 apiece.

On BSE, currently, Equitas SFB shares are trading at 59.65 apiece up by 6.80%. Its market cap is around 7,479 crore.

From its 1-year low, the stock as of now has soared by over 62% on Dalal Street.

The proposal of Equitas SFB amalgamation with its parent firm, Equitas Holdings, is inching closer to reality. The bank recently disclosed that it has a meeting scheduled with the NCLT for December 21, 2022, as part of this procedure. The bank already has "no-objection" from the RBI in May 2022 and shareholders' approval in September this year. For the reverse merger, the bank announced a revised share swap ratio of 100:231.

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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