Over 45 BSE small-cap stocks surge between 15-50% even as market ends week flat

The Indian markets remained almost unchanged for the first week of 2024, ending on January 5, despite indices hitting record highs in the first trading session of the year. The Nifty 50 closed the week at 21,710 points, experiencing a slight decline of 0.09%, while the S&P BSE Sensex dropped by 0.30%, concluding the week at 72,206 points.

The upcoming week is expected to be busy as major Indian IT companies gear up to announce their Q3 FY24 earnings, starting with Infosys on January 11.

Robust rally continues

In contrast to the performance of large-cap stocks, small-cap stocks maintained their upward momentum. Within the BSE small-cap index, 48 stocks reported returns ranging from 15% to 50% for the week.

Alok Industries stood as the top gainer during the week, with a gain of over 50%. The stock picked up steam after Reliance Industries invested ₹3,300 crore in the company by subscribing to preferential shares. 

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In a regulatory filing on January 2, Alok Industries said it has allotted preference shares to RIL upon receipt of subscription money of ₹3,300 crore.

The company’s board in November approved the issue of preference shares to Reliance Industries at a dividend rate of 9% on a private placement basis. These preference shares will be redeemable at par at any time at the company’s option within a period not exceeding 20 years from the date of allotment, according to the company.

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Sun Pharma Advanced Research Company also experienced a significant rally, delivering a return of 46.6% last week. During Friday's trading session, the shares surged by 9.26% to ₹420.55 apiece and currently hover near their February 2018 highs of ₹490.

Another notable small-cap stock making waves in the market last week was Inox Green Energy Services, recording a robust return of 36.3%. On January 4, the shares reached an all-time high of ₹149.65 apiece. Having made its debut on Indian stock exchanges in November 2022, the company's shares are trading at a substantial 120.4% premium over their issue price of ₹65.

Reliance Power continued its upward trajectory, registering a new 52-week high of ₹33 per share in Friday's trade, with an 8.55% gain. Over the past week, the stock has soared by 34.76%. In CY23, it delivered a remarkable return of 62.3%, climbing from ₹14.45 to ₹23.30.

However, the stock still has a considerable way to go to reach its all-time high of ₹331 per share, which it last attained in 2008. At current levels, the stock is trading 90.50% lower than that level.

Waaree Renewable Technologies demonstrated significant movement last week, as its stock surged from ₹2,034 per share to ₹2,689, marking a notable increase of 32.2%. This gain represents the stock's sixth consecutive week of rally, during which it achieved an impressive 97.72% growth.

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In an exchange filing on January 04, the company announced that its Board of Directors will meet on Saturday, January 20, 2024, to deliberate on various matters, including the proposal for the Sub-Division/Split of the equity shares.

Sobha, a real estate developer, witnessed a substantial gain of 28.77% last week, marking its best weekly performance since August 2021. This surge followed the company's announcement of its highest-ever quarterly sales value of ₹19.52 billion in Q3 FY24, reflecting a growth of 37.0% over Q3 FY23 and 13.2% compared to the preceding quarter (Q2 FY24).

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Further, domestic brokerage firm Motilal Oswal revised its target price on the stock upward to ₹1,400 per share, considering the company's strategic focus on unlocking its vast land reserve and exploring external growth opportunities with its healthy balance sheet.

Indo Amines stock also experienced its best weekly performance since August 2022, surging from ₹125.95 to ₹158.85 in the past week, translating into a gain of 26.12%.

Other notable performers last week include HPL Electric & Power, Steel Exchange India, Oswal Green Tech, Himadri Speciality Chemical, Sigachi Industries, Gujarat Themis Biosyn, Jay Bharat Maruti, India Glycols, 5Paisa Capital, PC Jeweller, Subros, Jaiprakash Power Ventures, Nitta Gelatin India, Mirza International, GTL Infrastructure, Vikas Lifecare, Hi-Tech Pipes, DCB Bank, Dish TV India, Praveg, Solara Active Pharma Sciences, Gujarat State Fertilizer & Chemicals, GE Power India, PTC Industries, Electrosteel Castings, Engineers India, Paisalo Digital, JBM Auto, Sat Industries, Balu Forge Industries, Paradeep Phosphates, Century Textiles & Industries, Genus Power Infrastructures, RattanIndia Power, Suven Life Sciences, Mahindra Logistics, Inox Wind Energy, S H Kelkar & Company, Meghmani Organics, Subex and GE T&D India which delivered positive returns ranging between 15% and 26%.  

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 decisions.