Consistent performers! 11 mid & smallcaps delivered positive return every month of FY23

According to the data from Ace Equity, as many as 11 midcap and smallcap counters have consistently delivered positive returns every month in the first six months of the ongoing financial year.

BSE Sensex has dropped marginally in the current financial year so far, whereas BSE midcap and smallcap indices have remained flat too. However, these lesser known counters delivered up to 53 per cent stake on a monthly basis.

Market analysts remain positive on the midcap and smallcap counters and expect them to outperform. They see many opportunities of alpha creation in India in the longer run.

Over the next decade or so, India is likely to gain in dominance relative to China, when it comes to a number of sectors such as chemicals, pharmaceuticals, steel, and more, says Kunal Bhakta, Investment Advisor, First Water Capital.

“Over a period of time, small and midcaps will continue to outperform their large-cap peers even on a risk-adjusted basis,” he added. “If one can pick the right kind of businesses to back, a lot of these are likely to become largecaps.”

Among these shares, BLS International, the visa processing company, has delivered between 3 to 53 per cent return every month between April to September. The stock has delivered a return of 200 per cent on a year to date basis in 2022.

Global financial services player Nomura had picked up stake in the company on two separate occasions in July and August. The stock has been at the focus since the unlocking of the global economy has begun, leading to revenge tourism.

Two-wheeler maker

is also a part of this list as the company has raised 5 to 14 per cent in all the months from April to September. It has delivered positive returns in October so far as well.

Prabhudas Lilladher has a buy call on TVS Motors with a target price of Rs 1,085, whereas ShareKhan also has a buy rating on the stock with a target price of Rs 1,100.

is also another consistent performer from the mid and smallcap segment. The speciality chemical player has delivered double digits returns in four months of the current fiscal.

Prabhudas Lilladher expects the company to deliver a 215 per cent growth in the net profit to Rs 157.1 crore in September 2022 quarter. Another brokerage firm Axis Securities gave it a sell rating in August with a target price of Rs 4,960.

and have also delivered strong returns in all months of the H1FY23. They have delivered up to 24 and 12 per cent return in a month, respectively.

In its September 2022 report,

had a buy rating on 3M India with a target price of Rs 22,789 whereas Choice Broking’s report, launched in August 2022, had an outperform rating on Lumax with a target price of Rs 1,763.

Among other names include Choice International,

, , Federal-Mogul Goetze (India) and also make it to this list.

Julius Baer CEO, Philipp Rickenbacher, says that timing the market amid geopolitical volatility remains a tough task; so, being slightly overweight on cash for the moment wouldn’t hurt.

But the head of the Swiss wealth manager, which handles money for the world’s richest, believes equities remain the best asset class to beat inflation – especially of the variety the West hasn’t seen for the greater part of five decades.

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