The following is how these three smallcap stocks outperformed the market:
This week’s trading session begins with a bloodbath on the Indian market, as the Sensex falls below 59,000 and the Nifty 50 falls below 17,500. Domestic equities were sharply consolidated, with a broad-based selloff across sectoral indices. Investors were nervous as they anticipated the US Fed tightening monetary policy, a stronger dollar, and a slowdown in economic activity. Despite the broader market downturn, three small-cap stocks managed to defy the bearish tone and outperform indices by hitting the 20% upper circuit. Seamec, Ritesh Properties, and Sakuma Exports were the three small-cap companies.
The Sensex ended the day at 58,773.87, down 872.28 points or 1.46%. The Nifty 50 fell 267.75 points, or 1.51%, to 17,490.70. Banking stocks were the hardest hit, with auto, information technology, and metal stocks trailing behind. All sectoral indices were negative. Furthermore, massive profit booking in index heavyweights exacerbated the situation.
Vinod Nair, Head of Research at Geojit Financial Service, commented on the market’s performance “Consolidation was triggered in the market in anticipation of the FED tightening monetary policy and concerns about a slowdown in global economic activity. The current risk-reward ratio does not favour investors, as the Nifty50 is now trading at a premium valuation of 21.5x P/E (1 year forward basis), which is higher than the long-term average. The market is facing near-term headwinds from the rising dollar index and higher US 10-year bond yields.”
“Market sentiment could remain volatile in coming sessions as the focus shifts back to global concerns of falling crude oil prices amid weakening demand, and US-China tussle over Taiwan,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Seamec smallcap stock
Seamec shares closed at the upper circuit of 1044 apiece on the BSE, up by 174 or 20%. The company’s market capitalization is approximately Rs. 2,654.37 crore. It is classified as BSE category ‘B’.
Seamec reported strong bottom-line growth in the first quarter of FY23, with consolidated PAT of 22.65 crore, up from 12.60 crore in Q1FY22 and 4.76 crore in Q4FY22. In Q1FY23, revenue from operations was 125.40 crore, up from 72.99 crore in Q1FY22 and 85.29 crore in Q4FY22.
Smallcap stock Ritesh Properties & Industries
A smallcap stock Ritesh Properties shares froze on the BSE at 390 per share, rising by 65 percent or 20%. The company has a market capitalization of approximately 953.27 crore. On BSE, it is part of the ‘X’ group.
The company set September 3rd as the record date for a stock split of equity shares from a face value of 10 each to Re 1 each on shares last week.
Ritesh Properties earned a consolidated net profit of 5.03 crore in the first quarter of FY23, compared to 11.99 crore in Q1FY22 and 10.14 crore in Q4FY22. Consolidated revenue fell to 24.29 crore in Q1FY23, down from 58 crore in Q1FY22 and 40.96 crore in Q4FY22.
Ritesh Properties is a leading company with real estate and fashion industry interests.
Sakuma Exports a Smallcap Company
Sakuma shares a smallcap company closed at 16.40 on the BSE, up 19.62%. The shares were trading near the day’s high of 19.45 per share and the 20% upper circuit of 19.68 per share. The company’s market capitalization is approximately 384.68 crore.
Sakuma is classified as a ‘B’ stock on the BSE.
Sakuma Exports reported a standalone net profit of 5.96 crore in Q1FY23, up from 4.71 crore in Q1FY22 but down from 9.91 crore in Q4FY22. Revenue from operations was 859.59 crore in Q1FY23, up from 544.93 crore in Q1FY22 but down from 1,064.16 crore in Q4FY22.
Sakuma is now a public limited company and a well-known player in global commodity trade, with a diverse portfolio of commodities, clients, and geographies. Over time, the company has carved out a niche for itself by meeting commodity needs in India, the Middle East, South and South East Asia, the Far East, Australia, Europe, and Africa.
The company buys, processes, markets, exports, and imports agricultural commodities such as sugar, edible oils, pulses, cotton, and a variety of specialty crops.
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