5 smallcap stocks rise 12-20% defying markets selloff. Do you own any?

Sensex closed at 60,906.09 down by 215.26 points or 0.35%. BSE SmallCap however rose by 65.17 points or 0.23% to end at 28,956.28. The smallcap index is slightly shy of crossing the 28,900 mark.

On the market’s performance, Vinod Nair, Head of Research at Geojit Financial Services said, “With the FOMC’s outcome around the corner, profit booking and a risk-off mood dragged the domestic market to trade with cuts. Meanwhile, strong US employment figures dented expectations for a slowdown in rate hikes. Since the market has already priced in a 75 bps rate hike by the Fed, market movement will be determined by their comments on its next moves.”

Here’s the list of 5 smallcap stocks that outperformed markets.

Karnataka Bank:

The bank froze at 20% upper circuit on exchanges. The stock closed at ₹112.55 apiece up by 19.99% on BSE. The price level is also the new 52-week high.

The stellar buying in Karnataka Bank was due to strong Q2 results. The bank posted an all-time high quarterly net profit of ₹411.47 crore in Q2FY23 up by 228% from ₹125.45 crore in the same quarter last year. Net interest income (NII) stood at ₹802.73 crore higher by 26% from ₹637.10 crore in Q2FY22.

In terms of asset quality, the bank recorded a gross NPA of 3.36 % against 4.03% in Q1FY23 and 4.52% in Q2FY22. Net NPA stood at 1.72% in Q2FY23 versus 2.16% in Q1FY23 and 2.85% in Q2FY22.

Karnataka Bank is an old-generation private-sector bank based in Mangaluru. The bank offers personal banking, NRI banking, business banking, and agricultural banking services online.

IFCI:

This public sector NBFC finished at ₹11.98 apiece up by 19.32% on BSE. During the last minutes of closing, the stock touched a 20% upper circuit of ₹12.04 apiece.

Investors were upbeat about IFCI shares after the government increased its stake in the company.

As per the regulatory filing, the company’s committee of directors allotted 9,29,36,802 equity shares at a price of ₹10.76 apiece (inter-alia including security premium of ₹0.76 apiece) to the Indian government. The allotment of equity shares was on a preferential basis. IFCI raised about ₹100 crore from this issuance. With the latest allotment, the government’s shareholding in IFCI increases to 66.35% of the total paid-up share capital. Earlier, the holding was around 64.86%.

Incepted in 1948, IFCI is an NBFC in the public sector. The company has seven subsidiaries and one associate. IFCI provides financial support for the diversified growth of Industries across the spectrum.

Mazagon Dock Shipbuilders:

It is one of the leading shipbuilding yard in India. The company has grown from a single-unit, small ship repair company, into a multi-unit and multi-product company, with a significant rise in production, use of modern technology, and sophistication of products. The company’s current portfolio of designs spans a wide range of products for both domestic and overseas clients.

Mazagon Dock shares closed at ₹726.05 higher by 13.84% on BSE. The shares touched a new 52-week high of ₹749.05 apiece earlier today on the exchange.

The stock is in focus ahead of its September 2022 quarterly earnings which are scheduled on November 10.

Also, the company’s board of directors will be considering interim dividends for FY23 on November 10. For this dividend, the company has already announced set November 22 as the record date to determine eligible shareholders.

Prudent Corporate Advisory Services:

The company witnessed strong buying due to healthy September 2022 quarterly earnings. Its AUM crossed the landmark of ₹50,000 crore in Q2FY23. Further, the company posted the highest ever revenue and net profit in H1FY23.

According to the financial audit report, Prudent Corp posted a PAT of ₹27.6 crore in Q2FY23 up by 41.1% yoy, while revenue rose by 39.7% yoy to ₹147.6 crore. EBITDA jumped by 58.4% yoy to ₹40.2 crore.

Gross flows from SIPs were the highest in the Company’s history at ₹1,324 crore in Q2FY23.

After clocking a new 52-week high of ₹835.60 apiece on BSE during trading hours on Wednesday, the stock closed at ₹789.90 apiece up by 13.43% on the exchange. The new 1-year high was also its 20% upper circuit.

Prudent Corporate Advisory Services is a retail wealth management services group based in India. The Company is among the top mutual fund distributors regarding assets under management (“AUM”) and commission received.

Goldiam International:

Goldiam International is one of the world’s most exquisite global exporters of luxurious diamond jewelry. The company’s business model of being an OEM to retailers globally has given them unmatched brand equity.

On BSE, Goldiam shares closed at ₹139.40 apiece up by 11.83%. Overall, on the day, the shares climbed over 15.5% on BSE with an intraday high of ₹144 apiece.

Goldiam has announced that the company’s board of directors will be meeting on November 11 to consider and approve financial results for the quarter and half year that ended September 30, 2022.