Top five Nifty Smallcap gainers of 2024: what drove their surge?

The Nifty Smallcap 100 index, a benchmark for the small-cap segment of the NSE in India, has delivered an impressive 23.7% year-to-date as of December 24.

This highlights the robust investor interest in small-cap stocks that constitute approximately 5% of the free-float market capitalization of the NSE as of September 30, 2024.

With financial services constituting 26.6% of the index, followed by capital goods making up 15.21% of the index, the benchmark also represents the performance of the small-cap segment in these key sectors.

For the six months ending September 2024, the total traded value of all Nifty Smallcap 100 index constituents accounted for approximately 11% of the total traded value of all stocks on the NSE.

Invezz takes a look at the top five gainers of the index in 2024, and what drove the optimism for the stocks:

Kaynes Technologies

Kaynes Technologies emerged as the star performer, delivering a remarkable 171.63% YTD return.

The electronic manufacturing service (EMS) provider gained from sectoral tailwinds like the Production-Linked Incentive Scheme and the global “China +1” strategy.

The company’s Q2 FY25 revenue surged 48.46% YoY to Rs 572 crore, with margins at 14.4%.

Its semiconductor facility in Gujarat, backed by a Rs 3,300 crore investment, is expected to drive revenue to Rs 4,000 crore by 2029-30, ensuring long-term growth potential.

Aegis Logistics

Aegis Logistics saw a 127.5% rise in its share price in 2024.

Specializing in logistics services for oil, gas, and petrochemicals, the company reported Q2FY25 revenue of ₹1,750.42 crore, a 41.75% YoY increase.

Aegis also announced a ₹4000 crore IPO plan for its subsidiary, Aegis Vopak Terminals Ltd in what has collectively positioned the company as a key player in India’s tank terminal operations, driving investor optimism.

IFCI

IFCI Limited, a public-sector NBFC, saw its share price increase by 109.55% year-to-date.

The company reported mixed financial results in Q2FY25, with revenue growing 7.47% YoY to ₹586.91 crore while profit declined 12.73% YoY to ₹82.62 crore.

However, sequential financial growth and board approval for the merger of group entities kept its market sentiment boosted.

Blue Star

The air-conditioning giant Blue Star surged 108.88% in 2024, led by consistent revenue growth exceeding 20% YoY over four consecutive quarters.

With Q2FY25 revenue hitting ₹2,276 crore and a growing order book worth ₹6,598.20 crore, the company’s robust fundamentals made the stock performance stand out in 2024.

CDSL

CDSL, India’s largest depository in terms of number of demat accounts opened, gained 99.41% YTD, benefiting from increased domestic investor participation and a shift towards market-based instruments.

In Q2FY25, the company’s net profit grew 48.8% YoY to ₹162 crore, with operational revenue rising 55.5% YoY to ₹322.3 crore.

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