50 smallcap stocks turnaround investors’ fortune multifold since last Samvat

Mumbai: Diwali is around the corner, and as D-Street investors are gearing up to pick stocks that could turn multibaggers during the new Samvat, let’s do a recap of the market performance since the last Samvat.

If one looks at the performance across largecap, midcap, and smallcap segments, then the third segment has by all means outpaced the other two.

Data shows that 50 smallcap stocks turned multibaggers since last Diwali. Among these, 31 stocks have actually given more than 100% returns for two straight years.


PG Electroplast, Bharat Dynamics, Gujarat Fluorochemicals, Mazagon Dock Shipbuilders, Shoppers Stop, Speciality Restaurants, Deepak Fertilisers & Petrochemicals, Raymond, Shanthi Gears, Shree Renuka Sugars, DB Realty, Vadilal Industries, Mirza International, and Cressanda Solutions are among 50 smallcap stocks that have given more than 100% returns since last Diwali.

Most analysts remain bullish on this pack and see their outperformance continuing in the coming year as well.


“Smallcaps have a good chance of beating largecaps in the coming year due to low ownership, fast adaptation to changing times, and shift from unorganised to organised sector,” said Deepak Jasani, head of retail research at HDFC Securities.

Rahul Bakshi, deputy general manager at consulting firm 21G Investments, believes that the smallcaps and midcaps can charge to new highs in 2023.

“It is likely that the Nifty Smallcap 100 might break the January 2022 high of 12,047 and Nifty Midcap 100 October high of 33,243.5,” Bakshi said.

The Nifty Midcap 100 index was trading 0.5% higher at 30737.50 while Nifty Smallcap 100 index rose 0.5% to 9612.30 in Tuesday's trade.

The performance of the stocks in the midcap space was not as stellar as smallcaps during the same period. In fact, the laggards outpaced gainers in the midcap segment.

Schaeffler India and Adani Power were the only midcap stocks that have given more than 100% returns since the last Diwali.

Stocks such as Jubilant FoodWorks, Glenmark Pharmaceuticals, Lupin, Aurobindo Pharma, IDBI Bank, Bank of India, Voltas, Hindustan Petroleum Corp, Mindtree, Max Financial Services, Steel Authority of India, Relaxo Footwears, and Godrej Properties have fallen by more than 22-51% during the said period.


Sharp rise in costs due to global commodity inflation has hurt fast-moving consumer goods companies and quick services restaurant operators, while the meltdown in metal prices over the last few months hit steel majors.

But, there are high possibilities that mid and smallcap stocks can beat Nifty50 in the next 1-3 years, as most of the stocks in this space are driven by domestic investors, said Amit Jain, co-founder at Ashika Global Family Office Services.

(With data inputs from Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)