And that stock could be a little-known minnow, like Sahyog Multibase, which has already delivered 1,755 per cent return since last Diwali. Even foreign institutional investors (FIIs) have lapped up over 1 per cent stake in the company in the September quarter of 2019.
The company is engaged in the business of plastic, chemicals raw material, polymers as well as petrochemicals. With a market capitalisation of just Rs 173 crore, the scrip traded at Rs 217 on BSE on October 15 against Rs 11.70 on November 7 last year.
Like Sahyog Multibase, there are 10 other smallcap stocks, each with a market-cap less than Rs 2,000 crore, where FIIs held over 1 per cent stake as of September 30.
Pioneer Investcorp, an integrated mid-market-focused financial services company, is another stock that has managed to raise eyebrows by delivering 106 per cent return since last Diwali, which was celebrated on November 7, 2018.
They delivered these returns at the time when broader market was witnessing severe selling pressure amid a painful economic slowdown. The BSE Sensex has advanced 9 per cent since last Diwali 2018, but that’s all thanks to a rebound in last couple of weeks.
BSE Smallcap index is still down 13 per cent year to date and BSE Midcap index down 10 per cent.
Among other small businesses delivering big returns are Ion Exchange (up 78 per cent since last Diwali), Seamec (up 47 per cent), Hester Biosciences (up 46 per cent), Zodiac Clothing (up 44 per cent), 63 Moons (up 41 per cent), Paisalo Digital (up 39 per cent), Amrutanjan Health Care (up 38 per cent) and Elantas Beck India (up 34 per cent).
Some of these companies are also favourites of well-known value investors. For instance, Anmol Sekhri’s Anmol Sekhri Consultants private held 1.10 per cent stake in Elantas Beck India as of September 30. Ace stock picker Rakesh Jhunjhunwala had over 5 per cent stake in Ion Exchange.
Pioneer Investcorp posted 6 times YoY rise in net profit for the year ended March 2019, while Seamec grew it 81 times. Both Amrutanjan Health and Ion Exchange posted over 60 per cent YoY growth in bottomlines in FY19. 63 Moons reported Rs 35 crore net loss for FY19 and Zodiac Clothing Rs 27 crore.
Overseas investors increased their stake in Ion Exchange, Hester Biosciences and Amrutanjan in last quarter gone by. They, however, offloaded some shares in Zodiac Clothing Company, 63 Moons, Paisalo Digital and Elantas Beck India.
Disclaimer: Stocks mentioned in the article should not be considered as recommendations. Market participants should consult their financial advisers before taking any position in these names. This writeup is only for information purpose.
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1 Comment on this Story
Pulkit Sudrania404 days ago