Infibeam, DroneAcharya: These 66 small-cap firms posted over 50% rise in H1FY24 sales

At least 66 small-cap firms, which have managed to outpace the BSE SmallCap index in the ongoing financial year, have reported over 50 per cent growth in gross sales during the first half of FY24. With a surge of 440 per cent, Lloyd Enterprises emerged as the top gainer in the list. Shares of the company have climbed to Rs 38.46 on November 7 from Rs 7.12 on March 31. Net profit of the company grew 233 per cent YoY to Rs 36.80 in H1FY24.

It was followed by Rajoo Engineers (up 401 per cent) and Avantel (up 288 per cent). Shares of Mercury EV-Tech, Authum Investment & Infrastructure, RMC Switchgears, Jupiter Wagons, HBL Power Systems, Empower India, Oriental Rail Infrastructure and Loyal Equipments also gained somewhere between 200 per cent and 300 per cent in the ongoing financial year. On the other hand, the BSE Sensex and the BSE SmallCap index advanced 10 per cent and 41 per cent, respectively, since March 31.

Commenting on the outperformance of railway stocks, Santosh Meena, Head of Research, Swastika Investmart said the PSU sector, particularly in the railway and defence sectors, is currently experiencing a significant re-evaluation. “The catalysts for this upward trend in railway stocks include government capex initiatives and the PLI scheme, aimed at bolstering the manufacturing sector. Remarkably, these sectors had been overlooked by the market for decades, resulting in highly attractive valuations.”

He further added that the railway sector now seems to reflect its true value due to current valuations and fundamental shifts. Global developments, such as the India-Middle East-Europe Corridor announced at the G20 summit and plans for a Bhutan-India railway network, hold promise for the industry's growth.

Data further highlighted that players like Titagarh Railsystems, Axtel Industries, DB Realty, Ashapura Minechem, Haryana Capfin, Taylormade Renewables, NDR Auto Components, Balu Forge Industries, Lloyds Engineering Works, Trans India House Impex, Sharda Ispat, The Anup Engineering, IIFL Securities, Monarch Networth Capital, Zen Technologies, WSFX Global Pay, Natural Biocon (India), Vivid Mercantile, Anant Raj and Syrma SGS Technology also managed more than double investors’ wealth in the ongoing financial year till November 7, 2023.

With a return of over 42 per cent, Kolte-Patil Developers, Som Distilleries Breweries, Ugro Capital, CreditAccess Grameen, Motilal Oswal Financial Services, Swiss Military Consumer Goods, DroneAcharya Aerial Innovations, Star Housing Finance and Infibeam Avenues stood among other firms which outpaced the BSE Smallcap index.

DroneAcharya Aerial Innovations posted 998 per cent YoY growth in consolidated gross sales and 2,948.50 per cent YoY rise in net profit in H1FY24. On the other hand, small-cap financial players including Fino Payments Bank, Infibeam Avenues and Star Housing Finance also posted a growth of somewhere between 50 per cent and 100 per cent in gross sales in H1FY24. Companies are looking confident on the forthcoming quarters due to the festive season. For instance, Infibeam Avenues in a release said, “The company’s CMD expressed optimism about achieving better business growth in the upcoming Q3 results, on account of festive and travel season, typically a strong quarter for the company.”

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