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Economic Times
5 hours ago
- Business
- Economic Times
Smallcap stocks are doubling money like it's 2024 once again. Should you jump in?
Money is doubling fast and it's not in the Sensex or Nifty. Smallcap stocks are once again stealing the spotlight in Indian markets, posting a stunning rally that has investors rushing back into the segment. ADVERTISEMENT The BSE Smallcap Index has jumped 21% in just three months, comfortably outpacing the Nifty's 12% gain in the same period. Several individual names have delivered astonishing returns — NACL Industries has soared 192%, while Garden Reach Shipbuilders (GRSE) is up 147%. Stocks like Suven Life, Centum Electronics, Cosmo First, Bharat Dynamics, Zen Tech, and Mangalore Chemicals have either doubled or come close. The smallcap momentum is unmistakable and it's being powered by both macro conditions and strong flows, just like what Dalal Street saw in 2024. 'We firmly believe that over the long-term in a growth economy like India, smallcap stocks could outperform largecaps,' said Venugopal Manghat, CIO – Equity at HSBC Mutual Fund. 'Smaller companies tend to thrive in expanding economic cycles leading to higher earnings growth. The environment is conducive — low inflation, falling interest rates, improving liquidity and strong tailwinds in manufacturing, infrastructure and financialization.'A mix of economic recovery, liquidity inflows and earnings optimism is fuelling the rally. But alongside the euphoria, voices of caution are growing louder. Also read: Don't ignore smallcaps: HSBC MF CIO on where growth lies in FY26 ADVERTISEMENT 'Despite the sharp upmove recently, largecaps currently offer a better balance of earnings visibility and valuation comfort on a forward-looking basis,' warned Krishna Appala, Fund Manager at Capitalmind PMS. 'The divergence between earnings and valuations in the broader market calls for greater selectivity. The environment today rewards fundamentals and discipline over broad-based exposure — especially when mid and smallcap multiples leave little room for error.'Indeed, valuations are no longer cheap. Trideep Bhattacharya of Edelweiss estimates that 'mid and small caps are trading at a 17% to 25% premium to their 10-year averages.' He emphasizes the importance of being selective: 'We advise that where there is a valuation premium, it must be matched with an earnings growth premium. Stocks with faltering growth but high valuations are in the penalty box.' ADVERTISEMENT Bhattacharya also advocates tailoring investment strategy to individual risk appetites: 'For conservative investors, we recommend flexicap funds. For moderate risk-takers, multicap funds. And for those with higher risk appetite and a 5–10 year horizon, midcap funds are ideal.'Fundamentals are showing signs of support. Some sectors posted better-than-expected numbers in the March quarter. 'There were a few pockets where Q4 results exceeded expectations,' said Sneha Poddar of Motilal Oswal. 'Raw material prices remained stable, global demand was supportive, and FMCG companies managed weaker urban demand with price hikes. Overall, demand wasn't as weak as feared.' ADVERTISEMENT Also read | Smallcap mania is back. But do Q4 earnings really justify the multibagger hype? Still, market veterans warn that the easy money may already be made. After a relentless three-month rally, the risks of overpaying in the smallcap space are rising, particularly in stocks where future earnings may not live up to the newly inflated real test now lies in sustainability. Will earnings keep pace with valuations? Will global liquidity remain supportive? And perhaps most importantly, will investors stay disciplined when the next correction hits? ADVERTISEMENT 'The divergence between earnings and valuations in the broader market calls for greater selectivity. The environment today rewards fundamentals and discipline over broad-based exposure — especially when mid and smallcap multiples leave little room for error,' Apala said. For now, the fireworks in smallcaps are lighting up investor portfolios. But those looking to join the party now may need to tread carefully. In this market, growth and discipline, not just price charts, will separate the winners from the rest. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
5 hours ago
- Business
- Time of India
Smallcap stocks are doubling money like it's 2024 once again. Should you jump in?
Smallcap stocks are experiencing a resurgence, mirroring the gains seen in 2024, with the BSE Smallcap Index significantly outperforming the Nifty. While economic recovery and liquidity inflows fuel this rally, experts caution about stretched valuations and the need for selective stock picking based on strong fundamentals. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Money is doubling fast and it's not in the Sensex or Nifty Smallcap stocks are once again stealing the spotlight in Indian markets, posting a stunning rally that has investors rushing back into the BSE Smallcap Index has jumped 21% in just three months, comfortably outpacing the Nifty's 12% gain in the same period. Several individual names have delivered astonishing returns — NACL Industries has soared 192%, while Garden Reach Shipbuilders (GRSE) is up 147%. Stocks like Suven Life, Centum Electronics, Cosmo First, Bharat Dynamics, Zen Tech, and Mangalore Chemicals have either doubled or come smallcap momentum is unmistakable and it's being powered by both macro conditions and strong flows, just like what Dalal Street saw in 2024.'We firmly believe that over the long-term in a growth economy like India, smallcap stocks could outperform largecaps,' said Venugopal Manghat, CIO – Equity at HSBC Mutual Fund. 'Smaller companies tend to thrive in expanding economic cycles leading to higher earnings growth. The environment is conducive — low inflation, falling interest rates, improving liquidity and strong tailwinds in manufacturing, infrastructure and financialization.'A mix of economic recovery, liquidity inflows and earnings optimism is fuelling the rally. But alongside the euphoria, voices of caution are growing louder.'Despite the sharp upmove recently, largecaps currently offer a better balance of earnings visibility and valuation comfort on a forward-looking basis,' warned Krishna Appala, Fund Manager at Capitalmind PMS. 'The divergence between earnings and valuations in the broader market calls for greater selectivity. The environment today rewards fundamentals and discipline over broad-based exposure — especially when mid and smallcap multiples leave little room for error.'Indeed, valuations are no longer cheap. Trideep Bhattacharya of Edelweiss estimates that 'mid and small caps are trading at a 17% to 25% premium to their 10-year averages.' He emphasizes the importance of being selective: 'We advise that where there is a valuation premium, it must be matched with an earnings growth premium. Stocks with faltering growth but high valuations are in the penalty box.'Bhattacharya also advocates tailoring investment strategy to individual risk appetites: 'For conservative investors, we recommend flexicap funds. For moderate risk-takers, multicap funds. And for those with higher risk appetite and a 5–10 year horizon, midcap funds are ideal.'Fundamentals are showing signs of support. Some sectors posted better-than-expected numbers in the March quarter. 'There were a few pockets where Q4 results exceeded expectations,' said Sneha Poddar of Motilal Oswal. 'Raw material prices remained stable, global demand was supportive, and FMCG companies managed weaker urban demand with price hikes. Overall, demand wasn't as weak as feared.'Still, market veterans warn that the easy money may already be made. After a relentless three-month rally, the risks of overpaying in the smallcap space are rising, particularly in stocks where future earnings may not live up to the newly inflated real test now lies in sustainability. Will earnings keep pace with valuations? Will global liquidity remain supportive? And perhaps most importantly, will investors stay disciplined when the next correction hits?'The divergence between earnings and valuations in the broader market calls for greater selectivity. The environment today rewards fundamentals and discipline over broad-based exposure — especially when mid and smallcap multiples leave little room for error,' Apala now, the fireworks in smallcaps are lighting up investor portfolios. But those looking to join the party now may need to tread carefully. In this market, growth and discipline, not just price charts, will separate the winners from the rest.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Mint
3 days ago
- Business
- Mint
Defence stocks fire up: Apollo Micro, Zen Tech, Garden Reach among 23 stocks that surged up to 61% in May
Defence stocks in focus: Defence stocks such as Garden Reach Shipbuilders, Paras Defence, Apollo Micro Systems, Cochin Shipyard, and Solar Industries ended May with solid gains, driven by strong demand from Dalal Street investors, positioning the defence sector as the month's top performer. The Nifty India Defence index concluded the month with a rally of 22%, recovering 70% from February lows, making the sector the biggest turnaround champion in 2025. After remaining under pressure for five consecutive months due to valuation concerns, the sector began recovering in March and extended its gains into April. However, a fresh wave of optimism was triggered by the launch of 'Operation Sindoor,' during which India showcased the strength of its indigenously developed defence systems and successfully intercepted drones and missiles launched by Pakistan. Sentiment was further bolstered after Prime Minister Narendra Modi reiterated the government's focus on promoting indigenous defence production under the Make in India initiative. Additionally, strong March quarter earnings, rising order inflows, expectations of expectation of rise in defence spending by the Indian government to further strengthen national security, and growing global demand for India's indigenously manufactured defence products all contributed to a strong rally in defence stocks in the previous month. This stellar performance also pushed the combined market capitalisation of the 18 Nifty India Defence constituents past the ₹ 11 lakh crore mark for the first time, reaching ₹ 11.3 lakh crore. In comparison, the market cap stood at ₹ 10 lakh crore during the same period last year, indicating an increase of over ₹ 1 lakh crore, most of which came in May. In terms of individual counters, Apollo Micro Systems emerged as the top performer among defence stocks in the May rally, delivering over 60% return as it surged from ₹ 117 to ₹ 183 apiece. This also marked the stock's biggest monthly gain since October 2023, when it had posted a 62% return. Drone-related stocks, including ideaForge Technology, DroneAcharya Aerial Innovations, Zen Technologies, RattanIndia Enterprises, and Paras Defence and Space Technologies, also surged up to 50%. Meanwhile, shipbuilding stocks delivered stellar performances as well, with Garden Reach Shipbuilders and Cochin Shipyard gaining 57% and 23%, respectively. Stock Name Returns in May Apollo Micro Systems 60.5% Garden Reach Shipbuiders 57% Zen Technologies 51% Droneacharya Aerial 50% ideaForge Technology 41.2% TechEra Engineering 39.2% Mishra Dhatu Nigam 38% Taneja Aerospace & Aviation 34% NIBE 33.3% Astra Microwave Products 32.4% Bharat Dynamics 32% Rossell Techsys 23.2% Bharat Electronics 22.5% Sika Interplant Systems 22% Cochin Shipyard 22.3% Paras Defence 18% MTAR Technologies 15.5% C2C Advanced Systems 14% Data Patterns (India) 14.6% Mazagon Dock Shipbuiders 13.7% HAL 11% DCX Systems 8% CFF Fluid Control 6% Source: Trendlyne Even though Mazagon Dock Shipbuilders tumbled 8% in today's session, it is still up 15% for the month of May. Other defence counters such as MTAR Technologies, Bharat Electronics, Mishra Dhatu Nigam, Bharat Dynamics, BEML, Astra Microwave, Data Patterns, Dynamatic Technologies, Cyient DLM, and DCX Systems have also seen notable investor interest. The outlook for the defence sector appears promising, as it is increasingly seen as a strong long-term opportunity—bolstered by rising defence budgets, growing export potential, and sustained policy support through initiatives like Make in India and Atmanirbhar Bharat. India's domestically manufactured defence products are gaining global traction, with exports reaching a record high of ₹ 23,622 crore in FY 2024–25. The government now aims to achieve annual defence exports worth ₹ 50,000 crore by 2029, further expanding its global footprint. This year, the government allocated ₹ 6.81 lakh crore to the defence budget. Additionally, reports suggest that an extra ₹ 50,000 crore boost is under consideration, reflecting the sector's strong growth momentum. 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.
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Business Standard
22-05-2025
- Business
- Business Standard
GRSE share price spikes 7% on winning ₹25,000-cr order from Indian Navy
Garden Reach Shipbuilders or GRSE share price jumped 6.5 per cent, logging an intraday high at ₹2,664.5 per share on BSE. The buying interest in the stock sparked after the company bagged ₹25,000 crore order from the Indian Navy. The stock rose for the second consecutive day, gaining over 10 per cent. At 12:36 PM, Garden Reach Shipbuilders shares were down 5.83 per cent at ₹2,645.9 per share on the BSE. In comparison, the BSE Sensex was down 1.06 per cent at 80,733.75. The market capitalisation of the company stood at ₹30,309.31 crore. The 52-week high of the stock was at ₹2,834.60 per share and the 52-week low of the stock was at ₹1,148.1 per share. Catch Stock Market Updates Today LIVE Garden Reach Shipbuilders order details The shipbuilding company emerged as the lowest bidder (L1) for construction of next generation corvettes (NGC) for the Indian Army. The L1 bidder will be awarded five NGC ships at a likely value of more than ₹25,000 crore. Garden Reach Shipbuilders Q4 results The company released its fourth quarter results on May 13, 2025. The company's profit more than doubled, or jumped 118.9 per cent year-on-year (Y-o-Y), to Rs 244 crore in Q4FY25, from Rs 112 crore in Q4FY24. Its revenue from operations climbed 61.7 per cent Y-o-Y to Rs 1,642 crore in the March quarter of FY25, as against Rs 1,015.7 crore in the March quarter of FY24. On the operating front, earnings before interest, tax, depreciation, and amortisation (Ebitda) zoomed 101 per cent Y-o-Y to Rs 335 crore in Q4FY25, from Rs 166 crore in Q4FY24. ALSO READ | About Garden Reach Shipbuilders Garden Reach Shipbuilders & Engineers is a shipbuilding company operating under the Ministry of Defence. Headquartered in Kolkata, Garden Reach Shipbuilders plays a vital role in strengthening India's maritime capabilities, primarily focusing on the construction of sophisticated warships and vessels for the Indian Navy and Coast Guard. In addition to defence projects, the company also undertakes the construction of commercial vessels, highlighting its versatility in shipbuilding. Beyond its core shipbuilding operations, the company has diversified into engineering and engine-related activities. It manufactures a wide range of marine and industrial products including deck machinery, prefabricated steel bridges, and marine pumps. Its engine division specialises in the assembly, testing, and overhauling of MTU diesel engines. With a proven track record of delivering over 100 warships to Indian defence forces, Garden Reach Shipbuilders is also recognised as a major exporter in the global warship market. Its main shipbuilding facility is located at the Rajabagan Dockyard in India.
Mint
22-05-2025
- Business
- Mint
GRSE share price rises 6% on a order update despite stock market crash
Stock Market Today: GRSE share price gained more than 6% during the intraday trades on Thursday despite stock market crash. The gains for the GRSE share price were led by an order update announced by the Garden Reach Shipbuilders or GRSE Garden Reach Shipbuilders or GRSE intimated the National Stock Exchange of India and the BSE or the Bombay Stock Exchange on Thursday 22 May 2025 about GRSE becoming L1 to NGC (Next Generation Corvettes) Project. GRSE or Garden Reach Shipbuilder in its release said that it attended the Commercial Negotiation Committee (CNC) meeting convened by the Ministry of Defence (MoD) for opening of commercial bids for the acquisition of eight (08) Next Generation Corvettes (NGC) on 21 May 2025 in New Delhi. In this regard and during the meeting, the Commercial bids were opened and it was noted that GRSE or Garden Reach Shipbuilder became the Lowest bidder (L1) for Construction of Next Generation Corvettes (NGC) for Indian Navy. The L1 bidder will be awarded five (05) NGC ships at a likely value of more than ₹ 25,000 crores. While the order win boosted the investor sentiments it also negated the impact of an order cancellation in Bangladesh. GRSe also had intimaed the exchanged on 21 May 2025 regarding Cancellation of Contract for Construction of an Advanced Ocean. GSE on 01 July 2024, had been awarded a Contract for Construction of an Advanced Ocean-Going Tug' for valued at approx. 21 million US dollar. However GRSE or Garden Reach Shipbuilders intimated that the Government of the People's Republic of Bangladesh has cancelled the order. GRSE share price opened at ₹ 2461.25 levels on the BSE on Thursday. At the time of opening GRSE or Garden Reach Shipbuilders share price was lower than previous days closing price of ₹ 2500.10. The GRSE sher price however gained during the morning trades to the intraday highs of ₹ 2660, which meant gains of 6.4% for the GRSE share price. This was on a day when Sensex declined more than 1% during the intraday trades Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
