Raymond, Likhitha Infra among 11 smallcaps that zoomed 31% last week

New Delhi: Despite some profit booking on Friday, domestic equity markets settled on a high note during the week. However, the smallcap index jumped more than 2% for the week, outperforming the benchmark indices.

On the BSE smallcap index as many as 11 stocks, across the sectors, rallied between 20 and 31% on a weekly basis, delivering handsome returns to investors.

The list is topped by HLV, which operates the hotels and resorts chain under the brand name of The Leela. The stock rose 31% during the week to Rs 13.96 till Friday.

As per HVS Anarock, demand remained strong during the quarter with occupancy rate at 62% in 2QFY23, with average room rent (ARR) higher by 13% from that in 2QFY20, said Motilala Oswal in its reports on the hospitality sector.

HLV is followed by Sadbhav Engineering, which gained 31% to Rs 17.52 for the week after its CEO Vasistha C Patel resigned with immediate effect along with its Executive Director and CFO Nitin R Patil.

Likhitha Infrastructure zoomed about 30% for the week as the stock traded ex-split in a 1:1 ratio during the week. Also, seasoned investor Ashish Kacholia picked 3.97 lakh shares or 2.01% stake in the company at Rs 398 apiece.

Rico Auto Industries and KBC Global jumped 27% each to Rs 77.45 and Rs 3.48, respectively, during the week, whereas Jaiprakash Associates, Raymond and Cosmo First added 22% each.

Raymond has been rallying higher on the back of high operating performance along with profit growth coupled with deleveraging optimism and better consumer demand.

Cosmo First announced a share buyback of up to 10.09 lakh shares at an offer price of Rs 1,070 aggregating up to Rs 108 crore. The company's shares settled at Rs 843.3 on Friday. Record date for the same has been fixed as December 22.

Bajaj Hindusthan Sugar, Skipper and Ajmera Realty & Infra India were other smallcap counters that gained 20% or more during the week.

Baja Hindustan Sugar hogged the limelight on the back of payment of entire overdues. India's sugar sector eyes export bonanza in tight global markets.

Consolidation is the driving feature of India’s property, said Nuvama Institutional Equities. "We believe buoyancy in sales would sustain driven by pick-up in launches, aided by cash flow improvement, diversification and market share gains."

Increase in the general level of wages and employment opportunities and return-to-work scenario are expected to keep home buying activity healthy, it added. However, it has no rating on Ajmera Realty.

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