Nifty Smallcap down: Cupid, Indo Thai among small-caps that defied 2025’s slump with over 150% rally

Small-cap stocks have witnessed one of their toughest phases in years in 2025, with broad-based selling, valuation compression and fading risk appetite weighing heavily on the segment.

After delivering stellar returns over the past two years, the small-caps have seen a sharp reversal, leaving many retail investors cautious and sentiment visibly bruised. However, experts believe that the space will likely recover in 2026.

"The probability of a cyclical revival in 2026 is high if earnings in the broader market stabilise, domestic SIP flows remain sticky and global rates peak out—thereby lowering the risk-free anchor. However, leadership within small caps is likely to be narrower: expect the quality-led small/mid segment to recover first, while over-leveraged names may continue to underperform," believes Sushant Bhansali, CEO, Ambit Asset Management.

The pressure is evident in benchmark performance, with the Nifty Smallcap 100 slipping more than 9% year-to-date, even as large-cap stocks continue to dominate the current market cycle. Weakness has also persisted across shorter timeframes, with the small-cap gauge falling nearly 7% in the past six months and about 6% in the last one month.

The underperformance marks a clear shift from the recent past. The small-cap index surged 56% in 2023 and followed it up with another strong 24% gain in 2024.

Yet, beneath this gloomy headline performance lies a striking contradiction. Even as the broader small-cap universe struggled, some of stocks bucked the trend, delivering extraordinary returns, soaring more than 150% in 2025.

Let's take a look at these multibagger small-cap stocks:

1. Cupid

Cupid’s stock rallied over 490% in 2025, standing out as the top performer among small-caps even as the broader index struggled. It soared over 380% in last 6 months, 108% in last 3 months and 36% in past 1 month.

Cupid Ltd, established in 1993, is one of India’s leading manufacturers of male and female condoms, personal lubricants and in-vitro diagnostic (IVD) kits. Known for quality products with WHO/UNFPA pre-qualification, the company has expanded into health and diagnostic segments.

2. Indo Thai Securities

The small-cap stock logged multi-fold returns in 2025, soaing 182% in 2025 YTD driven partly by strong retail participation and corporate actions like a stock split and rising client volumes. It advanced 93% in last 6 months, 70% in last 3 months but fell 17% in past 1 month.

Indo Thai Securities Limited, incorporated in 1995, is a full-service brokerage and financial services firm providing broking, depository and investment services across NSE, BSE and other platforms. Over the years it has built a diverse client base of retail investors, high-net-worth individuals and corporates.

3. Force Motors

Force Motors’ share gained 175% in 2025 YTD, highlighting its ability to garner investor confidence even when overall smallcaps lagged. However, it has been volatile recently, up 25% in last 6 months, down 4% in last 3 months but rising 2% in past 1 month.

Force Motors is a Pune-based automotive manufacturer known for the Traveller, Gurkha and other commercial vehicles, as well as engines and components for global OEMs. With collaborations and technology partnerships with brands like Mercedes and BMW, the firm has solidified its niche in both domestic and export segments.

4. NACL Industries

The stock ranked among the multibaggers of the year, delivering 174% returns in 205 YTD as investors rewarded steady fundamentals and resilient demand for its chemical products amid volatile markets. However, it has been under pressure recently, down 13% in last 6 months, 35% in last 3 months and 17% in past 1 month.

NACL Industries operates in the chemical sector, producing chlorine derivatives, specialty chemicals and industrial intermediates used across diverse industries. Its strong presence in both domestic and export markets has helped sustain earnings growth.

5. SML Mahindra

In 2025, the stock delivered strong returns, rallying 162% amid renewed focus on commercial vehicle demand, buoyed by its legacy and strategic backing from a major automotive group. It has also given multibagger returns in last 6 months, jumping 103% but fell 2% in past 3 months. In last 1 month, it added 28%.

SML Mahindra, formerly Swaraj Mazda and now majority-owned by Mahindra & Mahindra, manufactures buses, trucks, ambulances and special-purpose vehicles. Its integration into Mahindra’s ecosystem has enhanced product reach and operational scale.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.