Smallcaps shine; 11 stocks at new highs; HLE Glascoat, IFGL Refract up 20%

Smallcap stocks shine: Shares of smallcap companies were on a roll with the BSE Smallcap index outperforming the market by gaining nearly 1 per cent led by auto ancillary, industrial products, textiles and household appliances shares.

 

IFGL Refractories (₹277.20) and HLE Glascoat (₹498.65) were locked at the 20 per cent upper circuit on the BSE in Tuesday’s intra-day trade. 

 

Jamna Auto Industries, Magellanic Cloud, KIOCL, GE Power India, Signpost India, Devyani International, Motherson Sumi Wiring India, Aarti Pharmalabs, Garware Hi-Tech Films, Eveready Industries and Shaily Engineering Plastics from the BSE Smallcap index rallied between 6 per cent and 14 per cent.

 

11 smallcap stocks register new life-time highs

 

A total of 11 stocks including SJS Enterprises, Sudarshan Chemical Industries, Sai Life Sciences, Centum Electronics, CCL Products, CarTrade Tech and HBL Engineering from the BSE Smallcap index hit their respective all-time highs in intra-day trade today.

 

At 12:30 PM; the BSE Smallcap index up 0.75 per cent was the top gainer among the broader indices, as compared to 0.56 per cent rise in the BSE Sensex and BSE Midcap. In the past two trading days, the smallcap index has outperformed the market by gaining 2.2 per cent, as against 1.5 per cent gain recorded by the Sensex and Midcap index. 

Proposed GST reforms fueling the rally

 

The government has proposed GST 2.0 reforms recently which aims to rationalize the current multi-slab structure into a simpler framework, with two main rates of 5 per cent and 18 per cent, and a higher 40 per cent slab for luxury and sin goods. 

 

According to ICICI Securities, the aim is to make products more affordable domestically and is likely to boost consumption especially amidst the approaching festive season. The official notification is awaited & expected around/ before Diwali 2025. Notwithstanding geo-political tensions and tariff led uncertainty, the brokerage firm said they remain positive on markets.

 

The timing of GST reforms is apt and this potential policy stimulus along with personal income tax relief, front-loading of rate cuts, softer inflation (boosting purchasing power) and improved credit availability on regulatory easing should help buoy household consumption over the next 2-3 quarters, according to Tanvee Gupta Jain, Chief India Economist at UBS Securities.

 

In terms of sectors, the brokerage firm thinks the proposed removal of 12 per cent GST rate would be a positive for processed foods, garments (above ₹ 1000), footwear, tractors, farm equipment, construction material, hotel amongst others.  The prominent goods in the 28 per cent slab that could benefit from moving to the lower slab include air-conditioners, automobiles (largely 2-wheelers, small cars), cement amongst others.

 

Smallcap - HLE Glasscoat hits 52-week high

  Meanwhile, among individual stocks, HLE Glasscoat hit a 52-week high, zooming 20 per cent at ₹ 498.65 on the BSE in intra-day trade. The stock price of the industrial products company has zoomed 129 per cent from its 52-week low of ₹ 218 touched on March 13, 2025.

 

In the April to June 2025 quarter (Q1FY26), the company delivered healthy growth across all key financial metrics. Revenues rose 25.0 per cent year-on-year (Y-o-Y) at ₹283.95 crore, due to the strengthened demand and successful order execution. EBIDTA grew 68.6 per cent Y-o-Y at ₹39.85 crore and margin expansion to 14.0 per cent from 10.4 per cent.  Profit after tax more than doubled to ₹178.65 crore from ₹54.2 crore in a year ago quarter.

 

The company said its record order book of ₹738.74 core as on June 30, 2025 provides good visibility for enhanced future performance. The company further said it continues to receive enquiries for orders across all business segments. The Thaletec range of glass lined products is receiving an encouraging response from various reputed corporate users in India, it added.