scorecardresearchBharat Dynamics, Metro Brands and more: 15 small-cap stocks that gained 40-136% in 2022

Bharat Dynamics, Metro Brands and more: 15 small-cap stocks that gained 40-136% in 2022

Updated: 29 Dec 2022, 11:23 AM IST
TL;DR.
More than a dozen small-cap stocks in the NIFTY Smallcap 100 Index witnessed gains in the range of 40-136 percent in 2022.
Bharat Dynamics topped the list with a 136 percent rise.

Bharat Dynamics topped the list with a 136 percent rise.

The NIFTY Smallcap 100 Index has underperformed the Nifty50 in 2022 by declining 14.61 percent. The benchmark Nifty50 has risen 4.42 percent during the same period.

However, more than a dozen small-cap stocks in the NIFTY Smallcap 100 Index witnessed gains in the range of 40-136 percent this year.

Bharat Dynamics topped the list with a 136 percent rise. This defence stock began rising on February 24, the same day as the Russia-Ukraine crisis erupted, and it has since gained 124 percent. YTD, the stock has rallied from 389.55 apiece to the current price of 921.04.

Bharat Dynamics engages in the manufacturing and sale of guided missiles and allied equipment in India. It provides surface-to-air, air-to-air, and anti-tank guided missiles and underwater weapons.

Despite such strong gains in 2022, ICICI Direct Research believes the stock still has room to rise. In its most recent report, the brokerage noted that the company has a sizable order book worth 12,000 crore, which is 3.5 times TTM revenues, and it says this creates strong revenue visibility.

The brokerage has a "buy" call on the stock with a target price of 1,100 per share.

Defence stocks have seen a surge in buying after the companies' order books were filled by the Ministry of Defence as the government looks committed to reducing imports.

Shree Renuka Sugars was next on the list with a return of over 90.34 percent, moving from 30.05 to the current level of 57.20 in 2022.

The bull run in the stock came after the company announced its plan to expand ethanol capacity by December. Further, on September 22, the board of Wilmar Sugar, which is a holding company, provided a letter of support to the company to meet the shortfall in its normal trade-related working capital requirements for up to a period ending May 31, 2023.

Deepak Fertilizers & Petrochemicals  had the third-highest gains in the NIFTY Smallcap 100 Index. The stock had a great start to the year, rising 52.95 percent in January alone. It continued to rise at the same speed, reaching a 52-week high of 1,062 per share on October 21.

YTD, the stock has climbed from 372.50 to 709.65, delivering a return of almost 90 percent. Further, over the last three years, the stock has surged from around 98.95 to the current level, logging a nearly 617 percent rise in this period.

Shares of Metro Brands, engaged in the footwear business, have gained 87.87 percent this year so far, climbing from 458.20 to 860.85 apiece. The stock was listed on exchanges on December 22, 2021.

The stock reached a record high of 980.85 on October 6, 2022. From its IPO price of 500, the stock has gained by 72.2 percent.

Metro is one of the largest Indian footwear and accessories speciality retailers and is among the most aspirational Indian brands in the footwear category.

IIFL Finance stands at the fifth spot. The stock almost experienced a one-way spike from around 270.90 levels in March to 471.55, generating a return of 62.10 percent. YTD, the stock produced a return of 68.77 percent.

Easy Trip Planners was another big mover in 2022. Over this year, the stock has skyrocketed from 33.70 to its current position of 55.25, earning incredible returns of about 57.16 percent.

The stock has been performing well on Dalal Street for quite some time now, owing to a sharp rebound in their tourism segment following the economy's unlocking.

The seventh-largest mover so far in 2022 in the NIFTY Smallcap 100 Index is Aegis Logistics. During this period, the stock has climbed from 221.25 to 329.65, generating a return of over 49 percent.

Similarly, shares of Apollo Tyres have risen from 219.95 to 321.75 levels, generating a fabulous return of 46.28 percent in the current calendar year so far.

Robust demand from original equipment manufacturers (OEMs), better-than-expected Q2 numbers, and falling crude oil prices have all contributed to the rise in the stock.

Other stocks, including Bank of Maharashtra, IDFC Ltd., Elgi Equipments, CreditAccess Grameen, Fine Organic Industries, NLC India, and IRB Infrastructure Developers, have also witnessed a return of 40-55 percent so far this year.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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First Published: 29 Dec 2022, 11:23 AM IST