BSE IPO index hits new high; Gland Pharma, MTAR zoom over 40% in a month

The S&P BSE IPO index hit a new high of 12,201, up nearly 3 per cent in Wednesday's intra-day session on the BSE, after recently listed companies such as Happiest Minds Technologies, Computer Age Management Services (CAMS), Route Mobile and MTAR Technologies clocked strong gains. These stocks were up between 7 per cent and 11 per cent on the bourses today, as compared to a 0.22 per cent rise in the S&P BSE Sensex at 02:28 pm.

In the past one month, the BSE IPO index has outperformed the market by surging 14 per cent. In comparison, the benchmark S&P BSE Sensex and S&P BSE MidCap indices were up 0.7 per cent each while the S&P BSE SmallCap index gained 4.8 per cent during the period.

Individually, Happiest Minds Technologies and MTAR Technologies from the index have rallied 42 per cent and 40 per cent, respectively in the past one month while, Stove Kraft, Route Mobile, Angel Broking, Laxmi Organic and Gland Pharma gained between 20 per cent and 30 per cent.

A total of six stocks -- Angel Broking, CAMS, Gland Pharma, Happiest Minds Technologies, Laxmi Organic and Macrotech Developers -- have hit their respective new highs since listing.

Among these, shares of Happiest Minds Technologies surged 11 per cent at Rs 1,321 in intra-day trade today after Mindtree reported a healthy set of numbers for the quarter ended June 2021 (Q1FY22). Thus far in the financial year 2021-22 (FY22), the stock has zoomed 145 per cent on expectations sutainence of healthy financial performance.

For the financial year 2020-21 (FY21), Happiest Minds Technologies had posted a 126.6 per cent year-on-year (YoY) growth in profit after tax (PAT) at Rs 162.46 crore compared with Rs 71.71 crore posted in FY20. The revenue grew 10.8 per cent YoY to Rs 773.41 crore. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin improved 1,120 basis points (bps) to 27 per cent from 15.8 per cent last year.

The company said margins expansion was led by revenue growth, improved utilisation, realisation and lower attrition at Happiest Minds. Lower overheads on the growing scale and pandemic related savings, i.e. reduced rentals due to work-from-home, reduced travel and visa cost and other administrative costs also contributed to improved operational performance.

Meanwhile, those of CAMS soared 10 per cent to Rs 3,315, having gained 16 per cent in the past two trading days. Though FY22 started on a disruptive note as a result of the deadly second wave of Coronavirus, the overall prospects of the Indian mutual fund (MF) industry look promising, with the vaccination roll-out raising hopes of an early end to the pandemic.

"Despite the short-term disruptions, the industry is expected to grow in the long term on the back of various drivers, including anticipated economic growth, a growing investor base, higher disposable incomes and an expanding investable surplus. Increasing aggregate household and financial savings, increase in geographical penetration as well as better awareness, ease of investing, digitalisation and perception of Mutual Funds as long-term wealth creators are likely to further contribute to the growth of the industry," the company said in FY21 annual report.