Turnaround story: 40 smallcaps that lost over 30% in FY23, turn multibaggers in FY24
Dalal Street – smallcap stocks – as we saw as many as 181 of them turning multibaggers.
What’s worth noting is that more than 100 of these smallcap stocks went through a bad phase in the preceding financial year. So, FY24 became a turnaround year for many of them.
Among these, ETMarkets filtered out stocks that corrected more than 30% in FY23 but turned multibaggers in FY24, and found 40 such smallcaps.
Favourable risk-reward, coupled with strong earnings growth and robust domestic macroeconomic environment played in favour of the smallcaps and this triggered the stellar rally in the smallcap universe.
So far in FY24, the S&P BSE Smallcap index has rallied a whopping 59%, after correcting over 4% in FY23. In comparison, benchmark Sensex has gained 23.5% in FY24, compared to just 0.7% gain in FY23.
About 70 smallcap stocks miss the D-Street FY24 blockbuster list, correct up to 81%
Pharmaceutical company Kopran Ltd was the biggest loser in FY23, shedding 61%, but the stock rebounded sharply in FY24 and gave 135% returns to investors.
Alok Industries, owned by Reliance Industries, is another turnaround story in the smallcap universe. The stock, which fell more than 54% in FY23, rallied 147% in the current financial year. This rally was partly on the back of the fund infusion by the parent. RIL infused Rs 3,300 crore capital in Alok Industries in January.
Several smallcap real estate companies are part of FY24 multibaggers list, as higher investments by the government on infrastructure and
