Invested in these 20 small cap stocks? You just made a gain of 5% to 16%, see how
At around 1210 hours, Sensex was trading at 34,650.42 down by 0.82 points, whereas Nifty 50 fell by 13.80 points or 0.13% trading at 10,522.90.
Dalal Street was trading on a negative note during Wednesday’s trading session. In early trade, Sensex was trading at 34,632, down 18.80 points, while the broader Nifty50 was ruling at 10,525, down 11.20 points. In the broader market, the BSE Midcap and the BSE Smallcap indices added 0.2% each. Currently, Indian benchmark indices are reacting to a list of factors that includes corporate earnings, higher crude oil prices, macro-economic data, global trade war and geopolitical tension. However, there is joy in some circles. Even as major indices faced the heat, there were some 20 small cap stocks that gave massive returns today. Consider, if you had invested in any of these stocks, you would have made a gain of anything between 5% to a massive 16% in just one day.
At around 1210 hours, Sensex was trading at 34,650.42 down by 0.82 points, whereas Nifty 50 plunged by 13.80 points or 0.13% trading at 10,522.90.
Analysts at Geojit said, “The Nifty traded in a range of 50-60 points as investors’ monitored earnings and movements in Rupee and oil. The markets closed marginally higher after declining for five straight sessions forming a slightly bullish 'spinning top' candle on daily charts with Nifty holding above the psychological mark of 10500 levels, but closed below its 100-day moving average of 10538.”
But in the midst of these factors, there were a few stocks on BSE small cap that were trading better than the markets. Take a look at this:
S&P BSE Small Cap was trading at 17,143.58 above 86.69 points or 0.51% on Wednesday.
On this index, there were six stocks that gave returns in excess of 10%.
Madhucon Projects gained the most by 15.24% by touching intraday high of Rs 18.90 per piece. This was followed by Minda Industries which surged by 12.91% with high of Rs 1,272 per piece, GTL was above 12.24% with high of Rs 8.8 per piece, GeeCee Ventures up 11.91% was at a high of Rs 149.40 per piece, Trident was up 11.51% with high of Rs 59.10 per piece and BS International Services above 10.71% with high of Rs 185 per piece.
It needs to be noted that Minda industries board has approved bonus issue in the ratio of 2: 1, so this can be one reason for uptrend in the stock.
Going ahead, there were nine stocks that surged from 7% to 10%. Among them were - Ruchi Soya above 9.76%, Lakshmi Overseas Industries up 9.82%, Gammon Infrastructure up 9.69%, L&T Technology up 7.39%, Marksan Pharma up 7.33%, Triveni Turbine higher by 8.05%, SpiceJet up 7.17%, JVL Agro Industries up 7.37% and Saint Gobin Sekurit India up 9.73%.
Other stocks that also surged were - Andhra Cements up 5%, Gateway Distriparks above 5.07%, Bajaj Electricals up 5.78%, Punjab Chemicals & Corp up 6.49% and NIIT up 5.71%.
Many analysts still give buy call for some of the stocks mentioned above.
Motilal Oswal for Trident says, "The stock has traded at 9x 1-year forward P/E over the last three years, with RoE estimated to improve from 9.2% in FY18 to 12.5% in FY20. We expect revenue/PAT CAGR of 8%/26% over FY18-20. We, thus, value TRID at 10x FY20E EPS and arrive at a TP of INR83. Maintain Buy."
As for SpiceJet, Elara Capital says, "We value SJET at INR 203, ascribing 8.0x FY20 EV/EBITDAR multiple. SJET is our top pick among aviation space based on our bullish stance on regional market growth, where SJET has highest capacity."
Edelweiss Financial Services in case of L&T Technology said, "While ER&D outsourcing is clocking ~12% CAGR, LTTS is growing at significant higher rates, proving its superior technological prowess. We revise up FY19/FY20E revenue by 4.0/2.7% leading to revised target price to INR1,650 (INR1,625 earlier). We maintain ‘BUY’."
In regards to Gateway Distriparks, Sharekhan says, "We have lowered our estimates for FY2019-FY2020, factoring lower operational performance of the CFS and rail divisions. Considering the near-term business headwinds, we have maintained our Hold rating on the stock with a revised price target of Rs. 190."
Considering above factors, investors who have invested their hard earned money in the above mentioned small caps then good days have arrived for them.