Latest news with #Nelcast
Economic Times
26-05-2025
- Business
- Economic Times
Rs 7 lakh crore boom in just 10 days! Is the smallcap stocks party getting out of hand?
Smallcap stocks have surged, adding Rs 7.3 lakh crore to investor wealth in just 10 sessions, fueled by sectoral tailwinds and retail investor enthusiasm. Synopsis Smallcap stocks have surged, adding Rs 7.3 lakh crore to investor wealth in just 10 sessions, fueled by stock-specific triggers and retail investor enthusiasm. While some experts see justified valuations due to growth, others caution against stretched valuations and potential herd behavior, highlighting the risks of chasing momentum after a prior correction. The rally's sustainability remains questionable. As small is turning out to be beautiful once again, smallcap stocks have added a jaw-dropping Rs 7.3 lakh crore to investor wealth in just 10 trading sessions — a 10% surge in the BSE SmallCap index that has caught both retail and institutional investors off guard. The sharp rally, led by explosive moves in names like Nelcast and Cosmo First (both up 65%) and GRSE (up 55%), has sparked fresh debate: is this a sustainable rebound or another round of frothy FOMO? ADVERTISEMENT A total of 46 stocks have surged at least 30% in the last 10 days, with names such as TTML, IFCI, BLS E-Services, NDTV, Inox Green Energy, Zen Tech, Angel One and Titagarh Rail among the standout performers. The breadth of the rally has been remarkable — out of nearly 980 stocks in the BSE SmallCap index, fewer than 70 have delivered negative returns during this period. The rally, while widespread, has been driven by a combination of stock-specific triggers, sectoral tailwinds, particularly in defence and railways, and liquidity-led buying from retail investors eager to ride the next big wave. 'The recent ferocious rally in defence stocks post the recent skirmish (Operation Sindoor) is yet another example of greed or FOMO taking over rational investing behaviour,' said Atul Bhole, EVP & Fund Manager at Kotak Mahindra AMC. He noted that several small and midcap (SMID) stocks had earlier suffered value erosion of 40-60% between mid-2024 and early 2025, largely due to momentum-driven buying without fundamental backing. Also read | Smallcap surge or mere illusion? Rupak De decodes trends in broader market Bhole warns that while mutual funds and institutional investors have sidestepped many of these traps, retail participants may not have learned their lesson: 'The market is like a voting machine in the short term and keeps attracting new investors or making the same investors repeat newer mistakes.' ADVERTISEMENT Dhiraj Relli, MD & CEO of HDFC Securities, said the rally comes on the heels of a brutal correction: 'Midcap and small cap indices corrected 20-22% earlier this year, with many stocks falling 25-40%, which made valuations more attractive.' Sectors like railways, defence, and metals have since staged sharp rebounds. ADVERTISEMENT Still, Relli cautioned that investors chasing momentum need to tread carefully. 'Valuations in several segments have again become expensive. While smallcaps offer high return potential, they also come with high risk.'Rupak De, Senior Technical Analyst at LKP Securities, argued the current rally might be masking deeper issues. 'Many broader market stocks continue to look vulnerable to selling pressure. A handful of quality names are pulling up the smallcap and midcap indices, creating the illusion of broad strength.' ADVERTISEMENT He emphasized that this isn't 2023 anymore: 'This time around, the market will truly test your stock-picking skills.' Despite concerns, some strategists see merit in the rally. Seshadri Sen of Emkay Global noted that high valuations in the SMID space may not be as alarming as they appear. 'We do not see any bubble in SMIDs. High valuations are supported by growth and improved earnings quality,' he said. Sector composition differences between large caps and small/midcaps, he argues, explain much of the divergence in price-to-earnings ratios. ADVERTISEMENT Yet, not everyone is buying the Equities flagged that 30% of new mutual fund investors have entered the markets in the past two years, with disproportionate flows into midcap, smallcap, and thematic funds — a pattern that raises red flags around sustainability. Many of these investors are still heavily invested in 'narrative' stocks, despite last year's harsh Rs 7.3 lakh crore question is not whether smallcaps can rally but whether this rally is built on solid ground or destined to unravel under the weight of stretched valuations and herd behaviour. For now, momentum is in control — but fundamentals may soon have their say. (Data: Ritesh Presswala) Also read | Can Sensex hit 1 lakh in 1 year? Morgan Stanley gives new target (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) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
Time of India
26-05-2025
- Business
- Time of India
Rs 7 lakh crore boom in just 10 days! Is the smallcap stocks party getting out of hand?
Smallcap stocks have surged, adding Rs 7.3 lakh crore to investor wealth in just 10 sessions, fueled by stock-specific triggers and retail investor enthusiasm. While some experts see justified valuations due to growth, others caution against stretched valuations and potential herd behavior, highlighting the risks of chasing momentum after a prior correction. The rally's sustainability remains questionable. Tired of too many ads? Remove Ads Momentum Meets Narrative Tired of too many ads? Remove Ads A Bounce from the Bottom Not a Rising Tide for All Are Valuations Justified? Tired of too many ads? Remove Ads As small is turning out to be beautiful once again, smallcap stocks have added a jaw-dropping Rs 7.3 lakh crore to investor wealth in just 10 trading sessions — a 10% surge in the BSE SmallCap index that has caught both retail and institutional investors off guard. The sharp rally, led by explosive moves in names like Nelcast and Cosmo First (both up 65%) and GRSE (up 55%), has sparked fresh debate: is this a sustainable rebound or another round of frothy FOMO?A total of 46 stocks have surged at least 30% in the last 10 days, with names such as TTML Angel One and Titagarh Rail among the standout performers. The breadth of the rally has been remarkable — out of nearly 980 stocks in the BSE SmallCap index, fewer than 70 have delivered negative returns during this rally, while widespread, has been driven by a combination of stock-specific triggers, sectoral tailwinds, particularly in defence and railways, and liquidity-led buying from retail investors eager to ride the next big wave.'The recent ferocious rally in defence stocks post the recent skirmish (Operation Sindoor) is yet another example of greed or FOMO taking over rational investing behaviour,' said Atul Bhole, EVP & Fund Manager at Kotak Mahindra AMC. He noted that several small and midcap (SMID) stocks had earlier suffered value erosion of 40-60% between mid-2024 and early 2025, largely due to momentum-driven buying without fundamental warns that while mutual funds and institutional investors have sidestepped many of these traps, retail participants may not have learned their lesson: 'The market is like a voting machine in the short term and keeps attracting new investors or making the same investors repeat newer mistakes.'Dhiraj Relli, MD & CEO of HDFC Securities, said the rally comes on the heels of a brutal correction: 'Midcap and small cap indices corrected 20-22% earlier this year, with many stocks falling 25-40%, which made valuations more attractive.' Sectors like railways, defence, and metals have since staged sharp Relli cautioned that investors chasing momentum need to tread carefully. 'Valuations in several segments have again become expensive. While smallcaps offer high return potential, they also come with high risk.'Rupak De, Senior Technical Analyst at LKP Securities, argued the current rally might be masking deeper issues. 'Many broader market stocks continue to look vulnerable to selling pressure. A handful of quality names are pulling up the smallcap and midcap indices, creating the illusion of broad strength.'He emphasized that this isn't 2023 anymore: 'This time around, the market will truly test your stock-picking skills.'Despite concerns, some strategists see merit in the rally. Seshadri Sen of Emkay Global noted that high valuations in the SMID space may not be as alarming as they appear. 'We do not see any bubble in SMIDs. High valuations are supported by growth and improved earnings quality,' he said. Sector composition differences between large caps and small/midcaps, he argues, explain much of the divergence in price-to-earnings not everyone is buying the Equities flagged that 30% of new mutual fund investors have entered the markets in the past two years, with disproportionate flows into midcap, smallcap, and thematic funds — a pattern that raises red flags around sustainability. Many of these investors are still heavily invested in 'narrative' stocks, despite last year's harsh Rs 7.3 lakh crore question is not whether smallcaps can rally but whether this rally is built on solid ground or destined to unravel under the weight of stretched valuations and herd behaviour. For now, momentum is in control — but fundamentals may soon have their say.(Data: Ritesh Presswala): Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Business Standard
15-05-2025
- Business
- Business Standard
Nelcast consolidated net profit rises 167.06% in the March 2025 quarter
Sales rise 11.60% to Rs 329.75 crore Net profit of Nelcast rose 167.06% to Rs 13.54 crore in the quarter ended March 2025 as against Rs 5.07 crore during the previous quarter ended March 2024. Sales rose 11.60% to Rs 329.75 crore in the quarter ended March 2025 as against Rs 295.47 crore during the previous quarter ended March 2024. For the full year,net profit declined 31.46% to Rs 37.29 crore in the year ended March 2025 as against Rs 54.41 crore during the previous year ended March 2024. Sales declined 1.20% to Rs 1251.68 crore in the year ended March 2025 as against Rs 1266.94 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 329.75295.47 12 1251.681266.94 -1 OPM % 9.005.27 - 7.077.28 - PBDT 24.8211.40 118 70.3274.95 -6 PBT 18.195.41 236 45.5450.82 -10 NP 13.545.07 167 37.2954.41 -31
