20 smallcap stocks hit record highs; Banco, Godawari Power rally up to 15%

Shares of small-cap companies are in focus, with 20 stocks from the BSE Smallcap index having hit their respective all-time highs and rallied by up to 15 per cent in an otherwise subdued market.

 

Banco Products (India), Godawari Power and Ispat (GPIL), Sarda Energy & Minerals, Gabriel India, Yatharth Hospital & Trauma Care Services, Allied Blenders and Distillers, Apollo Micro Systems, Ashapura Minechem, Cupid, Gokul Agro Resources, HBL Engineering, Nava and Radico Khaitan are among notable stocks from the BSE Smallcap index hitting new highs in Monday's intra-day trade.

 

At 02:30 PM, the BSE Smallcap index, the top gainer among broader indices, was up 0.66 per cent, as compared to a 0.11 per cent decline in the BSE Sensex.

Small-cap stocks that led the rally

Among the individual stocks, Banco Products (India) soars 15 per cent to ₹712.05 on the back of heavy volumes. As many as a combined 7.57 million equity shares representing 5.3 per cent of the total equity of the auto ancillary company have changed hands on the NSE and BSE. Gabriel India, an auto parts company, has rallied 6 per cent to ₹1,302.55 in intra-day trade. 

 

The Indian automotive sector witnessed a strong recovery and growth, with increased vehicle sales across categories. Government infrastructure investments have significantly boosted demand for construction equipment and heavy-duty commercial vehicles. Additionally, original equipment manufacturers (OEMs) are accelerating the launch of new models to remain competitive.

  

Meanwhile, the share price of iron & steel companies GPIL (up 13 per cent at ₹276) and Sarada Energy & Minerals (up 8 per cent at ₹639) have hit their respective new highs. In the past two months, the stock price of these companies has zoomed 46 per cent and 44 per cent, respectively.

 

The average trading volumes on the GPIL counter have risen over 20-fold. A combined 40 million equity shares representing 6 per cent of the total equity of the iron & steel products company have changed hands on the NSE and BSE.

 

The Indian iron ore sector is demonstrating sustained resilience and promising growth momentum in FY 2024-25. With continued government thrust on large-scale infrastructure projects and the reinforcement of initiatives such as 'Make in India, demand for iron and steel remains strong, driving consistent requirements for essential raw materials like iron ore and pellets. 

 

The current fiscal year is witnessing significant developments, including capacity expansions, accelerated technological adoption, evolving regulatory frameworks, and dynamic shifts in global market conditions. These factors are collectively shaping a more competitive and globally integrated iron ore and pellet industry, reinforcing its critical role within the domestic steel manufacturing ecosystem, GPIL said.

 

The Indian steel sector is poised for growth, driven by increased demand, government initiatives, and a focus on sustainability and technological advancements. India has set the targets of achieving a total crude steel capacity of 300 million tonnes per annum (MTPA) and total crude steel demand/ production of 255 MTPA by 2030-31. 

 

Demand for steel is likely to grow as the government’s augmented focus on infrastructural development continues with increased construction of roads, railways, airports, etc. Rise in infrastructure development and automotive production is driving growth, Sarda Energy said.