How did small caps perform in December 2024?

3 Jan 2025 , 09:38 AM

HOW DID THE SMALL CAP STOCKS FARE IN DECEMBER 2024

After being under pressure in the last few months, the small caps gained about 0.61% in December 2024; and performed better than mid-caps and large caps.

• For December 2024, Nifty Small cap 100 gained 0.61%. Out of the 95 small-caps with full data, 13 companies generated over 10% in December and 18 companies gave over 5%. Only 43 out of 95 companies gave positive returns.
• For the year to December 2024, Nifty Small Cap 100 gained 24.82%. Out of the 95 small caps with full data, 5 companies generated over 100% returns, and 22 companies over 50%. Total of 64 out of 95 companies gave positive returns in year to December 2024.
• What about resilience? Nifty Small cap 100 bounced 35.46% from the lows. Out of the 95 small-caps with full data, 14 companies bounced over 100%, and 42 bounced over 50%. Total of 15 companies bounced less than 10% from lows.
• What about swing, or proximity to high price. The index overall had a swing factor of 3.23%. A total of 21 out of 95 companies are less than 10% from the peaks.

Let us start with small cap stocks from the perspective of momentum?

DID SMALL CAPS SHOW MOMENTUM RETURNS IN DECEMBER 2024

In terms of 1-month returns, the Nifty Small cap 100 gained 0.61%. Out of the 95 eligible stocks in the index, only 43 stocks gave positive returns. Here are the top-15.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
ITI	382.90	33.22	22.67	413.85	210.00	82.33%	7.48%
AMBER	7,542.45	26.78	146.97	7,977.00	2,992.50	152.05%	5.45%
INTELLECT	957.00	26.53	18.03	1,199.00	693.00	38.10%	20.18%
FIVESTAR	798.95	23.93	9.15	943.75	600.05	33.15%	15.34%
BLUESTARCO	2,295.05	22.66	137.60	2,387.70	929.90	146.81%	3.88%
MANAPPURAM	190.60	22.66	13.69	230.40	138.35	37.77%	17.27%
BLS	500.25	22.58	50.30	503.50	262.95	90.25%	0.65%
KAYNES	7,467.60	20.23	185.27	7,822.00	2,424.00	208.07%	4.53%
KPIL	1,281.00	15.96	87.46	1,449.00	696.20	84.00%	11.59%
ACE	1,550.00	14.68	78.54	1,695.00	837.00	85.19%	8.55%
KEC	1,211.00	13.32	99.60	1,313.25	589.05	105.59%	7.79%
SWANENERGY	741.50	13.06	43.37	809.80	437.10	69.64%	8.43%
360ONE	1,295.70	11.54	88.61	1,312.10	591.50	119.05%	1.25%
CDSL	1,810.05	8.62	-0.57	1,989.80	811.00	123.19%	9.03%
LAURUSLABS	612.05	6.74	41.32	618.25	360.85	69.61%	1.00%

Data Source: NSE

For December 2024, 13 stocks gave double digit returns led by (ITI, Amber Enterprises, Intellect Design, Five Star Finance, Blue Star, Manappuram etc). In terms of sectoral mix; the top-15 had 5 New Age Technology stocks and 4 BFSI plays. The worst performers in December 2024 in terms of monthly returns included PVR Inox, Tejas Networks, NALCO, HFCL, and Hindustan Coper.

DID SMALL CAPS DELIVER ON 1-YEAR RETURNS?

Out of 95 small cap stocks, 5 stocks more than doubled yoy, while 22 stocks gave over 50% returns. A total of 31 stocks gave negative returns yoy. Here is the top-15 on 1-year returns.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
KAYNES	7,467.60	20.23	185.27	7,822.00	2,424.00	208.07%	4.53%
AMBER	7,542.45	26.78	146.97	7,977.00	2,992.50	152.05%	5.45%
BLUESTARCO	2,295.05	22.66	137.60	2,387.70	929.90	146.81%	3.88%
IFCI	61.95	-2.76	115.76	91.40	28.25	119.29%	32.22%
FSL	393.90	4.93	108.50	403.70	176.25	123.49%	2.43%
KEC	1,211.00	13.32	99.60	1,313.25	589.05	105.59%	7.79%
MCX	6,340.00	-0.58	97.80	7,048.60	2,917.85	117.28%	10.05%
CAMS	5,190.05	-0.07	90.99	5,367.50	2,649.50	95.89%	3.31%
GRSE	1,645.00	-0.74	90.76	2,833.80	673.45	144.26%	41.95%
360ONE	1,295.70	11.54	88.61	1,312.10	591.50	119.05%	1.25%
KPIL	1,281.00	15.96	87.46	1,449.00	696.20	84.00%	11.59%
PPLPHARMA	256.80	-5.56	83.81	307.90	114.35	124.57%	16.60%
GLENMARK	1,637.15	4.33	81.65	1,830.95	771.00	112.34%	10.58%
TRITURBINE	765.35	1.82	79.01	885.00	350.35	118.45%	13.52%
ACE	1,550.00	14.68	78.54	1,695.00	837.00	85.19%	8.55%

Data Source: NSE

On a yoy basis, the list was dominated by a mix of 3 financial inclusions plays (MCX, CAMS, and 360 One), 2 EMS companies (Kaynes, Amber), and 2 healthcare companies (Glenmark and Piramal Pharma). The remaining stocks in the above list, were largely spread out across sectors with Garden Reach being the sold defence player in the list.

HOW RESILIENT WERE SMALL CAPS IN LAST ONE YEAR?

In terms of bounce from lows, small caps bounced 35.46%. Total of 14 stocks more than doubled, and 42 jumped over 50% from the lows. Top-20 average bounce was 117.14%.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
KAYNES	7,467.60	20.23	185.27	7,822.00	2,424.00	208.07%	4.53%
AMBER	7,542.45	26.78	146.97	7,977.00	2,992.50	152.05%	5.45%
BLUESTARCO	2,295.05	22.66	137.60	2,387.70	929.90	146.81%	3.88%
GRSE	1,645.00	-0.74	90.76	2,833.80	673.45	144.26%	41.95%
PPLPHARMA	256.80	-5.56	83.81	307.90	114.35	124.57%	16.60%
FSL	393.90	4.93	108.50	403.70	176.25	123.49%	2.43%
CDSL	1,810.05	8.62	-0.57	1,989.80	811.00	123.19%	9.03%
IFCI	61.95	-2.76	115.76	91.40	28.25	119.29%	32.22%
360ONE	1,295.70	11.54	88.61	1,312.10	591.50	119.05%	1.25%
TRITURBINE	765.35	1.82	79.01	885.00	350.35	118.45%	13.52%
MCX	6,340.00	-0.58	97.80	7,048.60	2,917.85	117.28%	10.05%
GLENMARK	1,637.15	4.33	81.65	1,830.95	771.00	112.34%	10.58%
KEC	1,211.00	13.32	99.60	1,313.25	589.05	105.59%	7.79%
APARINDS	10,510.00	2.56	72.61	11,000.00	5,151.00	104.04%	4.45%
CAMS	5,190.05	-0.07	90.99	5,367.50	2,649.50	95.89%	3.31%

Data Source: NSE

On resilience score, the list was dominated by financial inclusion stocks (CDSL, 360 One, MCX, and CAMS). Even on resilience count, the two EMS players; Kaynes and Amber are right at the top. The remaining stocks in the above list, were largely spread out and largely similar to the 1-year return rankings list. The list at the bottom included stocks like; Birlasoft, Happiest Minds, NMDC Steel, Aarti Industries, IndiaMart and GMDC. There were no sectoral trends visible among the underperformers on the resilience factor.

HOW SMALL CAPS FARED ON THE SWING FACTOR?

In terms of proximity to the peak, the small cap index was just 3.23% short of the peak. Total of 21 stocks are less than 10% to the peak while 33 stocks are over 30% off the peak.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
BLS	500.25	22.58	50.30	503.50	262.95	90.25%	0.65%
LAURUSLABS	612.05	6.74	41.32	618.25	360.85	69.61%	1.00%
360ONE	1,295.70	11.54	88.61	1,312.10	591.50	119.05%	1.25%
RADICO	2,595.00	6.72	55.91	2,637.70	1,429.85	81.49%	1.62%
FSL	393.90	4.93	108.50	403.70	176.25	123.49%	2.43%
CAMS	5,190.05	-0.07	90.99	5,367.50	2,649.50	95.89%	3.31%
BLUESTARCO	2,295.05	22.66	137.60	2,387.70	929.90	146.81%	3.88%
APARINDS	10,510.00	2.56	72.61	11,000.00	5,151.00	104.04%	4.45%
KAYNES	7,467.60	20.23	185.27	7,822.00	2,424.00	208.07%	4.53%
AMBER	7,542.45	26.78	146.97	7,977.00	2,992.50	152.05%	5.45%
ZENSARTECH	792.95	-2.73	26.31	839.50	515.00	53.97%	5.54%
AFFLE	1,777.75	2.07	35.32	1,884.00	998.20	78.10%	5.64%
ASTERDM	522.20	5.09	29.04	558.00	311.10	67.86%	6.42%
RAMCOCEM	985.95	-6.68	-5.17	1,060.00	700.00	40.85%	6.99%
ITI	382.90	33.22	22.67	413.85	210.00	82.33%	7.48%

Data Source: NSE

In terms of proximity to the peak, the list is once again dominated by New Age Technology (BLS, Kaynes, Amber,  Zensar, Affle, ITI Ltd) and financial inclusion (360 One and CAMS). Companies farthest from the peak were largely financials and PSUs. Most of these sectors struggled to get back to their previous highs, due to persistent selling at higher levels.

How can we sum up the small cap story for December 2024. While small caps were under pressure, they have surely done better than the mid-caps and largely caps and is also closer to the peak levels, showing a highly favourable swing factor. Alpha hunting may be missing in action now, but once the retail flows and the HNI flows come back, it should be heady days for the small cap stocks.