20 smallcaps with over 30% profit growth surge over 1000% in 3 years; do you own any?
How many of you have become a lakhpati in just three years with an investment of Rs 10,000?
Among them who have become one were those who bought any of the 20 smallcap stocks that have reported profit growth of over 30 per cent CAGR and turned an investment of Rs 10,000 into more than Rs 1 lakh in three years.
The list includes stocks such as Capital Trust, which rallied 3,126 per cent to Rs 455.65 as of March 2, 2017 from Rs 14.12 on March 3, 2014.
An investment of Rs 10,000 on this stock in 2015 would have become over Rs 3 lakh today. Net profit of the company grew from Rs 1.54 crore in FY13 to Rs 20.25 crore in FY16.
Others from this basket included Indo Count Industries, Shilpi Cable, IG Petrochems, Kellton Tech, 8K Miles and KEI Industries, whose shares rallied 1,940 per cent, 1,826 per cent, 1,627 per cent, 1,479 per cent, 1,411 per cent and 1,364 per cent, respectively, in last three years.
On the robust performance of midcap and smallcap stocks, Pankaj Tibrewal, Fund Manager, Equity, Kotak Mutual Fund, said, “Midcaps and smallcaps are a very broad category with many listed companies. So, it would be incorrect to view it as one homogenous category. There are pockets where valuations are stretched. We are seeing significant opportunities in many pockets such as oil and gas, auto ancillaries, consumer discretionary, capital goods, niche businesses and cement. At a structural level, most midcap and smallcap companies derive a large part of their revenues from India and have relatively lower global exposure. As a result, they are more levered to the India growth story and are less impacted by the global macroeconomic slowdown. Also, many of these are well-placed to benefit from the shift towards organised sector on the back of demonetisation and implementation of the GST.”
Companies such as Caplin Point, Nilkamal and Dalmia Bharat have registered over 40 per cent annualised growth (CAGR) in net profit over the past three years. Shares of Caplin Point Labs surged from Rs 29.55 on March 3, 2014 to Rs 400.70 on March 3, 2017. Nilkamal and Dalmia Bharat have advanced 1,230 per cent and 1,192 per cent, respectively, in these three years.
Others such as Force Motors, CanFin Homes, Minda Industries, Mold-Teck Pack, Gufic BioScience, TVS Srichakra, Arrow Greentech and Century Ply have rallied between 1,000 per cent and 1,200 per cent during this period.
On valuations, Deepak Shenoy, Founder of Capital Mind, told ETNow, in an interview, “Valuations of midcap and smallcap stocks looks a little frothy after the recent runup.”
In the past three years, smallcap stocks have outperformed their midcap and largecap counterparts. The BSE Smallcap index has rallied 108 per cent since March 2014, while BSE Midcap and BSE Sensex have risen 102 per cent and 38 per cent, respectively, during the same period.
Among them who have become one were those who bought any of the 20 smallcap stocks that have reported profit growth of over 30 per cent CAGR and turned an investment of Rs 10,000 into more than Rs 1 lakh in three years.
The list includes stocks such as Capital Trust, which rallied 3,126 per cent to Rs 455.65 as of March 2, 2017 from Rs 14.12 on March 3, 2014.
An investment of Rs 10,000 on this stock in 2015 would have become over Rs 3 lakh today. Net profit of the company grew from Rs 1.54 crore in FY13 to Rs 20.25 crore in FY16.
Others from this basket included Indo Count Industries, Shilpi Cable, IG Petrochems, Kellton Tech, 8K Miles and KEI Industries, whose shares rallied 1,940 per cent, 1,826 per cent, 1,627 per cent, 1,479 per cent, 1,411 per cent and 1,364 per cent, respectively, in last three years.
On the robust performance of midcap and smallcap stocks, Pankaj Tibrewal, Fund Manager, Equity, Kotak Mutual Fund, said, “Midcaps and smallcaps are a very broad category with many listed companies. So, it would be incorrect to view it as one homogenous category. There are pockets where valuations are stretched. We are seeing significant opportunities in many pockets such as oil and gas, auto ancillaries, consumer discretionary, capital goods, niche businesses and cement. At a structural level, most midcap and smallcap companies derive a large part of their revenues from India and have relatively lower global exposure. As a result, they are more levered to the India growth story and are less impacted by the global macroeconomic slowdown. Also, many of these are well-placed to benefit from the shift towards organised sector on the back of demonetisation and implementation of the GST.”
Companies such as Caplin Point, Nilkamal and Dalmia Bharat have registered over 40 per cent annualised growth (CAGR) in net profit over the past three years. Shares of Caplin Point Labs surged from Rs 29.55 on March 3, 2014 to Rs 400.70 on March 3, 2017. Nilkamal and Dalmia Bharat have advanced 1,230 per cent and 1,192 per cent, respectively, in these three years.
Others such as Force Motors, CanFin Homes, Minda Industries, Mold-Teck Pack, Gufic BioScience, TVS Srichakra, Arrow Greentech and Century Ply have rallied between 1,000 per cent and 1,200 per cent during this period.
On valuations, Deepak Shenoy, Founder of Capital Mind, told ETNow, in an interview, “Valuations of midcap and smallcap stocks looks a little frothy after the recent runup.”
In the past three years, smallcap stocks have outperformed their midcap and largecap counterparts. The BSE Smallcap index has rallied 108 per cent since March 2014, while BSE Midcap and BSE Sensex have risen 102 per cent and 38 per cent, respectively, during the same period.
