These smallcap stocks hit upper circuit today despite Sensex slumping 850 points

This week's trading session begins with a bloodbath on the Indian market as Sensex erased its 59,000 mark and Nifty 50 slides down 17,500 levels. There was a sharp consolidation in the domestic equities with a broad-based selloff across sectoral indices. Investors' sentiment was jittery on expectations of tighter monetary policy by the US Fed, a stronger dollar, and a slowdown in economic activity ahead. However, amidst the downturn in broader markets, there were three small-cap stocks that managed to defy the bearish tone and outperformed indices by hitting the 20% upper circuit. These three small-caps were Seamec, Ritesh Properties, and Sakuma Exports.

Sensex closed at 58,773.87 lower by 872.28 points or 1.46%. Nifty 50 slipped by 267.75 points or 1.51% and settled at 17,490.70. Banking stocks were the worst hit, while auto, IT, and metal stocks further dragged the performance. All sectoral indices were in the red. Also, huge profit booking in index heavyweights further added to woes. 

On the market's performance, Vinod Nair, Head of Research at Geojit Financial Service said, "Consolidation was triggered in the market in anticipation of tighter monetary policy by the FED and worries over a slowdown in global economic activity. The current risk-reward is not favouring investors as the Nifty50 is now trading at a premium valuation of 21.5x P/E (1yr fwd basis), above the long-term average. Rising dollar index and higher US10 year bond yield act as the near-term headwinds for the market."

Going forward, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, "Market sentiment could remain volatile in coming sessions as the focus would shift back to global concerns of falling crude oil prices amid weakening demand, and US-China tussle over Taiwan."

Here's how these three smallcap stocks outperformed markets:

Seamec:

On BSE, Seamec shares closed at the upper circuit of ₹1044 apiece up by ₹174 or 20%. The company's market cap is around ₹2,654.37 crore. It is listed under the 'B' category of BSE.

In the first quarter of FY23, Seamec registered robust growth in the bottom-line front with consolidated PAT at ₹22.65 crore rising from ₹12.60 crore in Q1FY22 and ₹4.76 crore in Q4FY22. Revenue from operations came in at ₹125.40 crore in Q1FY23 higher than ₹72.99 crore in Q1FY22 and ₹85.29 crore in Q4FY22.

SEAMEC is the region's leading provider of Diving Support Vessel (DSV) based diving services.

Ritesh Properties & Industries:

On BSE, Ritesh Properties shares froze on their upper circuit of ₹390 apiece rising by ₹65 or 20%. The company has a market cap of around ₹953.27 crore. It is listed under the 'X' group on BSE.

Last week, the company fixed September 03 as the record date for a stock split of the equity shares from a face value of ₹10 each to Re 1 each on shares.

During the first quarter of FY23, Ritesh Properties garnered a consolidated net profit of ₹5.03 crore compared to ₹11.99 crore in Q1FY22 and ₹10.14 crore in Q4FY22. Consolidated revenue also declined to ₹24.29 crore in Q1FY23 against ₹58 crore in Q1FY22 and ₹40.96 crore in Q4FY22.

Ritesh Properties is a leading company with business interests in Real Estate & Fashion Industry.

Sakuma Exports:

On BSE, Sakuma shares closed at ₹16.40 apiece up by 19.62%. The shares were near the day's high of ₹19.45 apiece and 20% upper circuit of ₹19.68 apiece. The company's market cap is around ₹384.68 crore.

Sakuma is listed under the 'B' group on BSE.

In Q1FY23, Sakuma Exports recorded a standalone net profit of ₹5.96 crore higher than compared to ₹4.71 crore in Q1FY22 but lower than compared to ₹9.91 crore in Q4FY22. Revenue from operations stood at ₹859.59 crore in Q1FY23 rising against ₹544.93 crore in Q1FY22, however, declining from ₹1,064.16 crore in Q4FY22.

Sakuma is currently a public limited company and reputed player in global commodity trade, with a portfolio mix comprising multiple commodities, clients, and geographies. Over the years, the company has created a niche for itself by fulfilling commodity requirements in India, the Middle East, South and South East Asia, the Far East, Australia, Europe, and Africa.

The company is engaged in buying, processing, marketing, exporting, and importing agricultural commodities like sugar, edible oils, pulses, cotton, and a number of specialty crops.