Small caps rally in June 2025, but net profits contract

2 Jul 2025 , 12:03 PM

SMALL CAPS – PROFIT PERFORMANCE LAGS BEHIND

The small cap index closed the June quarter with smart returns of 19.3%. The month of June alone saw small cap index rallying by 6.7%. However, this was not matched by the earnings performance. If you look at the FY25 earnings, the large caps saw earnings growth of 6% and mid-caps grew earnings at 2%. However, the small earnings contracted by -16% in FY25. The pressure on the small caps is visible when you consider that while small caps delivered 19.3% in the June quarter, the returns were just 4.1% for the full year. Here is a quick look at small caps in the month of June 2025 from different standpoints.

SMALL CAP MOMENTUM MODEST IN JUNE 2025

In terms of 1-month returns, the Nifty Small cap 100 gained 6.66% in June 2025. Out of the 91 eligible stocks in the index, 67 stocks gave positive returns, while 24 stocks gave negative returns in June 2025. 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
MCX	8,947.50	35.47%	127.94%	9,075.00	3,620.30	147.15%	1.40%
REDINGTON	325.90	25.78%	51.88%	334.80	158.61	105.47%	2.66%
KFINTECH	1,348.00	24.94%	92.47%	1,641.35	699.00	92.85%	17.87%
NH	2,167.00	24.46%	80.15%	2,370.20	1,171.00	85.06%	8.57%
KARURVYSYA	267.98	20.68%	29.42%	268.80	185.55	44.42%	0.31%
LAURUSLABS	726.30	18.91%	70.73%	727.00	414.00	75.43%	0.10%
CDSL	1,796.00	17.28%	-24.85%	1,989.80	1,047.45	71.46%	9.74%
POONAWALLA	467.00	15.43%	13.92%	467.55	267.20	74.78%	0.12%
MANAPPURAM	275.62	15.38%	32.45%	284.90	138.35	99.22%	3.26%
AFFLE	1,991.60	15.14%	48.72%	2,040.00	1,246.00	59.84%	2.37%
NUVAMA	8,192.00	14.41%	66.10%	8,508.50	4,600.00	78.09%	3.72%
NAVINFLUOR	4,799.90	13.12%	34.86%	4,922.00	3,160.40	51.88%	2.48%
HINDCOPPER	279.60	12.84%	-12.36%	353.00	183.82	52.11%	20.79%
MGL	1,481.00	11.92%	-7.12%	1,988.00	1,075.25	37.74%	25.50%
INDIAMART	2,592.00	11.38%	-3.09%	3,198.40	1,900.10	36.41%	18.96%

Data Source: NSE

In June 2025, 5 stocks have given returns of over 20%, while 18 stocks have given double-digit returns. In terms of sectoral mix; the top-15 had 7 Financial Inclusion stocks (MCX, KFINTECH, Karur Vysya, CDSL, Poonawalla, Manappuram and Nuvama); 3 digital enablement stocks; and 2 healthcare plays. Others were bottom-up plays. The worst performers in June 2025 by monthly returns were Inox Wind, BLS, Zen Technologies, Areva, Newgen, Cyient, and Angel One.

DID SMALL CAPS DELIVER ON 1-YEAR RETURNS?

For the 91 small cap stocks with full data, the average 1-year return was 4.13%. A total of 51 stocks gave positive 1-year returns, while 40 stocks delivered negative returns for June 2025. 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
MCX	8,947.50	35.47%	127.94%	9,075.00	3,620.30	147.15%	1.40%
GODFRYPHLP	8,921.00	3.15%	117.64%	9,645.50	3,950.05	125.85%	7.51%
KFINTECH	1,348.00	24.94%	92.47%	1,641.35	699.00	92.85%	17.87%
NH	2,167.00	24.46%	80.15%	2,370.20	1,171.00	85.06%	8.57%
FSL	375.50	0.86%	78.44%	422.30	208.45	80.14%	11.08%
ASTERDM	596.15	6.57%	71.95%	609.50	315.50	88.95%	2.19%
LAURUSLABS	726.30	18.91%	70.73%	727.00	414.00	75.43%	0.10%
ZENTEC	1,985.00	-7.41%	68.61%	2,627.00	945.35	109.98%	24.44%
WELCORP	927.90	-1.18%	68.38%	994.00	544.85	70.30%	6.65%
NUVAMA	8,192.00	14.41%	66.10%	8,508.50	4,600.00	78.09%	3.72%
PCBL	417.65	5.09%	63.50%	584.40	252.00	65.73%	28.53%
NEULANDLAB	12,006.00	4.32%	60.32%	18,100.00	7,496.05	60.16%	33.67%
KAYNES	6,100.00	1.92%	58.17%	7,822.00	3,726.00	63.71%	22.01%
REDINGTON	325.90	25.78%	51.88%	334.80	158.61	105.47%	2.66%
AMBER	6,777.50	4.28%	49.71%	8,177.00	3,964.00	70.98%	17.12%

Data Source: NSE

On a yoy basis, the leaders were dominated by a mix of 4 Healthcare stocks (Narayana Hrudayalaya, Aster DM, Laurus Labs, and Neuland Labs); 3 Financial Inclusion plays (MCX, KFINTECH, and Nuvama); and 3 EMS companies (Kaynes, Amber, and Redington). The remaining stocks were largely spread out across different sectors. At the bottom are companies like Titagarh Wagons, Tejas Networks, RITES, Birlasoft, PVR Inox, Sonata Software, and Aarti Industries.

HOW RESILIENT WERE SMALL CAPS IN LAST ONE YEAR?

In terms of bounce from lows, small caps bounced 35.44%. Total of 7 stocks bounced over 100% from the lows, while 84 jumped over 20%. Top-15 average bounce was 105.03%.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
GRSE	3,011.00	0.40%	43.64%	3,538.40	1,184.90	154.11%	14.91%
MCX	8,947.50	35.47%	127.94%	9,075.00	3,620.30	147.15%	1.40%
GODFRYPHLP	8,921.00	3.15%	117.64%	9,645.50	3,950.05	125.85%	7.51%
PGEL	753.95	-2.18%	-78.77%	1,054.20	337.00	123.72%	28.48%
DATAPATTNS	2,911.00	1.84%	-3.36%	3,655.00	1,351.15	115.45%	20.36%
ZENTEC	1,985.00	-7.41%	68.61%	2,627.00	945.35	109.98%	24.44%
REDINGTON	325.90	25.78%	51.88%	334.80	158.61	105.47%	2.66%
MANAPPURAM	275.62	15.38%	32.45%	284.90	138.35	99.22%	3.26%
KFINTECH	1,348.00	24.94%	92.47%	1,641.35	699.00	92.85%	17.87%
BEML	4,454.30	5.37%	0.44%	5,488.00	2,350.00	89.54%	18.84%
ASTERDM	596.15	6.57%	71.95%	609.50	315.50	88.95%	2.19%
NH	2,167.00	24.46%	80.15%	2,370.20	1,171.00	85.06%	8.57%
FSL	375.50	0.86%	78.44%	422.30	208.45	80.14%	11.08%
IFCI	65.14	-3.34%	5.83%	91.40	36.20	79.94%	28.73%
NUVAMA	8,192.00	14.41%	66.10%	8,508.50	4,600.00	78.09%	3.72%

Data Source: NSE

On resilience score, the list was still dominated by defence stocks (GRSE, Data Patterns, Zen Technologies, and BEML); Financial Inclusion (MCX, Manappuram, IFCI, and Nuvama); and healthcare (Narayana Hrudayalaya and Aster DM). The remaining stocks were largely spread out and roughly mirrored the 1-year return rankings list. The list at the bottom included stocks like; Bata India, Tejas Networks, Areva, PVR Inox, Crompton, Cyient, BLS, HFCL, and Signature.

HOW SMALL CAPS FARED ON THE SWING FACTOR?

In terms of proximity to the peak, the small cap index was just 3.25% short of the peak. A total of 20 stocks are less than 10% to the peak while 27 stocks are over 30% off the peak. That shows a huge divergence in performance of the small caps.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
LAURUSLABS	726.30	18.91%	70.73%	727.00	414.00	75.43%	0.10%
POONAWALLA	467.00	15.43%	13.92%	467.55	267.20	74.78%	0.12%
KARURVYSYA	267.98	20.68%	29.42%	268.80	185.55	44.42%	0.31%
RAMCOCEM	1,079.00	10.17%	28.54%	1,082.50	765.00	41.05%	0.32%
MCX	8,947.50	35.47%	127.94%	9,075.00	3,620.30	147.15%	1.40%
ASTERDM	596.15	6.57%	71.95%	609.50	315.50	88.95%	2.19%
AFFLE	1,991.60	15.14%	48.72%	2,040.00	1,246.00	59.84%	2.37%
NAVINFLUOR	4,799.90	13.12%	34.86%	4,922.00	3,160.40	51.88%	2.48%
REDINGTON	325.90	25.78%	51.88%	334.80	158.61	105.47%	2.66%
MANAPPURAM	275.62	15.38%	32.45%	284.90	138.35	99.22%	3.26%
NUVAMA	8,192.00	14.41%	66.10%	8,508.50	4,600.00	78.09%	3.72%
IDBI	103.04	6.84%	23.17%	107.90	65.89	56.38%	4.50%
RADICO	2,624.10	3.33%	46.50%	2,786.90	1,628.00	61.19%	5.84%
WELCORP	927.90	-1.18%	68.38%	994.00	544.85	70.30%	6.65%
GODFRYPHLP	8,921.00	3.15%	117.64%	9,645.50	3,950.05	125.85%	7.51%

Data Source: NSE

In terms of proximity to the peak, the list is dominated by 6 Financial Inclusion (Poonawalla, Karur Vysya, MCX, Manappuram, Nuvama, and IDBI); 2 healthcare stocks (Larus Labs, Aster DM); and 2 FMCG Companies (Radico Khaitan, Godfrey Phillips). Companies farthest from the peak were a mixed bag of stocks like Tejas Networks, Titagarh Wagons, HFCL, JWL, Sonata Software, JBMA, Swan Energy, and Areva. While the overall swing factor appears to have improved for small caps, the divergence is still huge!