16 BSE small-cap stocks rallied 15-29% last week

As per recent media reports, the US 10-year Treasury note briefly touched 5% on Thursday for the first time since 2007, and the Brent Crude futures rose above $93 per barrel on Friday, reaching a level not seen since October 3. The Nifty 50 and S&P BSE Sensex concluded the week with losses of 1.06% and 1.34%, respectively, amidst these developments.

Despite the prevailing uncertainties, small-cap stocks have continued their winning streak. In the BSE small-cap index, 16 stocks posted returns ranging from 15% to 29% during the week.

Nucleus Software Exports stood as the top gainer during the week, with a gain of over 29%. The stock picked up steam on October 05 after the company said that Mahindra Rural Housing Finance, a subsidiary of Mahindra & Mahindra Financial Services Limited, implemented its software FinnOne Neo for their retail and mortgage lending operation. 

After this announcement, the stock experienced a one-way rally, hitting a new all-time high of ₹1,521 apiece in Friday’s session and rallying 50% to date.

Shakti Pumps (India) shares also saw massive rally, with returns of nearly 24.3%. In Friday’s trading session, the shares spiked another 10.32% to record a new all-time high of ₹1,224.65.

In the previous session (October 19), the stock was locked in a 20% upper circuit limit after the company said it received a Letter of Empanelment from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for 50,000 Off-Grid solar photovoltaic water pumping systems (SPWPS) pumps for the entire state of Maharashtra under Component B of the PM-KUSUM scheme (Phase III). The total value of the 50,000 pumps is around ₹1,603 crore, which is to be executed over 24 months, as per the company’s exchange. 

In just last six months, the company’s shares have more than doubled investor wealth, generating a return of 161.50%, and in the last three years, they have skyrocketed by 339%.

Ion Exchange (India) shares in Friday’s session hit a record high of ₹687 apiece, spiking by 13.17%. This surge propelled the stock to achieve a 24% gain for the week. Notably, the stock has been on an impressive bullish trend this year, delivering a remarkable return of 137% so far.

The next small-cap stock that made strides in the market was Newgen Software Technologies. The company on Tuesday (October 17) posted robust Q2 FY24 numbers, with its net profit surging 59% to ₹48 crore, up from ₹30 crore recorded in the corresponding quarter of the last fiscal, while the consolidated revenue from operations reached ₹293 crore compared to ₹226 crore in Q2 FY23, up 30% YoY, driven by strong growth in banking and financial services across geographies.

Investors reacted positively to the company’s performance, as on October 17, the stock crossed ₹1,000 for the first time, and in the following two sessions, it continued the bull run and registered a new all-time high of ₹1,185 apiece. Overall, the stock gained 23.8% last week.

Extending their bull run, shares of Suzlon Energy hit a 9-year high of ₹33.2 apiece in Friday’s session. Last week, the shares zoomed 21.3%. The stock began its one-way rally in April, consistently closing each subsequent month with positive returns until September.

Among these months, May was the standout performer with a remarkable rally of 41.6%, followed by June with a return of 30%.

On similar lines, shares of Authum Investment & Infrastructure zoomed 21% last week, rising from ₹660 to ₹797, and in Friday’s session, the shares registered a new all-time high of ₹842 apiece.

Bombay Burmah Trading Corporation also saw its shares soar massively in Friday’s trade, locking at a 20% upper circuit of ₹1,420 apiece, while this rally made the stock record a gain of 19.7% during the week.

Pearl Global Industries, an apparel manufacturing company, also saw its shares performing well on exchanges last week, producing a return of 16.5% by spiking from ₹1,205 to ₹1,404. The stock began its upward rally in February of this year, closing all months in green, with the current month (October) standing as the biggest outperformer with a gain of 40% so far.

Other notable performers last week include KIOCL, Rushil Decor, Dhunseri Ventures, SEPC, TruCap Finance, Apollo Micro Systems, Seamec, and Renaissance Global, which delivered positive returns ranging between 15% and 23%.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decision

“Exciting news! Mint is now on WhatsApp Channels ???? Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!

Updated: 22 Oct 2023, 12:27 PM IST