Small-cap rally: Indiabulls Ventures zooms 1262% in CY17

HEG, VenkyS India, Graphite India, Bhansali Engineering Polymers, Avanti Feeds, Bombay Dyeing, Phillips Carbon Black and Shakti Pumps are some of the other stocks that have rallied 250 - 445% in CY17

The S&P BSE Small-cap index hit its all-time high of 16,869 level in intra-day deals on Monday. The index has gained nearly 40% thus far in calendar year 2017 (CY17). However, the rally in some of the individual stocks that comprise this index has been sharper.

Among the lot, investors have found fancy to Indiabulls Ventures Limited, which has rallied a massive 1262% in this period (till September 15), data from ACE Equity show. Last week, foreign research and brokerage house, CLSA, added the stock in its Asia ex-Japan long-only portfolio.

"A 3% investment will be initiated in Indian consumer finance play Indiabulls Ventures. This will be paid for by shaving the existing investments in HDFC Bank, Indiabulls Housing Finance and Bajaj Finance by 1 percentage point (ppt) each," wrote Christopher Wood, managing director and equity strategist at CLSA in his weekly note, GREED & fear.

The investor in the stock comes despite the market regulator, Securities and Exchange Board of India (Sebi), raising a red flag on the sharp rally in the stock. The sharp rise in the share’s price after a preferential allotment to institutional investors between April and June, according to reports, generated red flags at the Sebi’s surveillance system. The share price surged eightfold in these six months and trebled since April, ahead of the share allotment.

HEG, VenkyS India, Graphite India, Bhansali Engineering Polymers, Avanti Feeds, Bombay Dyeing, Phillips Carbon Black and Shakti Pumps are some of the other stocks that have rallied 250 – 445% thus far in CY17.

Some of these stocks have been rising basis the positive news flow. Bombay Dyeing, for instance, has gained 271% thus far in CY17. A major portion of this rally has been over the past few weeks given an improvement in its operational and financial metrics. 

The company’s net loss narrowed to Rs 33 crore in Q1FY18, against loss of Rs 44 crore in a year ago quarter. The company slocked in a revenue of Rs 623 crore in the recently concluded quarter, registering 31% year-on-year (y-o-y) increase. This was primarily driven by 137% y-o-y increase in revenues from real estate segment. Earlier, this month, it sold 48.457 acres of freehold land situated at district Pune, Maharashtra for Rs 13.57 crore.

SMALL-CAPS MAKE IT BIG
	Close as on Dec 30	Close as on Sep 15	Change (%)
Indiabulls Ventures Ltd.	20.55	279.95	1262
HEG Ltd.	150	818.3	446
VenkyS (India) Ltd.	427.9	2170.05	407
Graphite India Ltd.	72.95	324.5	345
Bhansali Engineering Polymers Ltd.	22.35	90.4	304
Toyam Industries Ltd.	2.14	8.23	285
Avanti Feeds Ltd.	490.95	1882.8	284
Bombay Dyeing	47.25	175.35	271
Phillips Carbon Black Ltd.	222.85	809	263
Shakti Pumps (India) Ltd.	139.5	495.8	255
Indiabulls Real Estate Ltd.	71.3	250.35	251
Himadri Speciality Chemical Ltd.	33.3	115.85	248
Visaka Industries Ltd.	184.55	631.55	242
Geojit Financial Services Ltd.	34.5	113.25	228
Future Consumer Ltd.	19.95	64.75	225
Future Enterprises Ltd.	16.7	53.85	222
V-Mart Retail Ltd.	465	1452.55	212
Jindal Stainless Ltd.	37.75	116.7	209
Data Source: ACE Equity
Closing price in Rs