Small caps recover in September; led by financials and outsourcing

3 Oct 2025 , 11:39 AM

SMALL CAPS – CHERRY PICKING BEGINS IN SMALL CAPS

The tariffs and the visa ban may be hitting the small caps a lot more, but the investors are already scouring for pockets of opportunity, The focus this month has been on small cap financials, which are largely domestic plays. Also, there was focus on very granular outsourcing plans that would benefit from global restrictions on trade and movement. For September 2025, small cap returns were positive at 1.95% for the month, but -8.73% for the full year. Here is a 360-degree look at small caps in the month of September 2025.

SMALL CAP MOMENTUM RECOVERS IN SEPTEMBER 2025

In terms of 1-month returns, the Nifty Small Cap 100 bounced 1.95% in September 2025. Out of the 92 eligible stocks in the index, 55 stocks gave positive returns, while 37 stocks gave negative returns in September 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
HINDCOPPER	328.67	38.96%	-7.27%	353.00	183.82	78.80%	6.89%
ANANTRAJ	696.00	35.40%	-3.10%	947.90	376.15	85.03%	26.57%
REDINGTON	282.70	20.92%	55.80%	334.80	158.61	78.24%	15.56%
POONAWALLA	498.00	16.21%	26.71%	513.35	267.20	86.38%	2.99%
PNBHOUSING	864.50	15.45%	-10.48%	1,141.90	746.70	15.78%	24.29%
KAYNES	7,062.00	15.15%	26.97%	7,822.00	3,825.15	84.62%	9.72%
JBMA	672.40	14.07%	-62.57%	929.50	489.80	37.28%	27.66%
AMBER	8,120.00	13.27%	76.70%	8,497.00	4,580.00	77.29%	4.44%
CHOLAHLDNG	1,880.00	12.26%	-3.26%	2,231.60	1,357.35	38.51%	15.76%
AEGISLOG	765.00	9.92%	-0.01%	1,037.00	609.85	25.44%	26.23%
MRPL	132.38	9.91%	-25.39%	186.45	98.92	33.83%	29.00%
WOCKPHARMA	1,507.00	9.59%	58.69%	1,868.80	915.00	64.70%	19.36%
NBCC	107.17	9.23%	-39.50%	130.70	70.80	51.37%	18.00%
MANAPPURAM	282.30	8.15%	39.53%	298.00	138.35	104.05%	5.27%
DEEPAKFERT	1,501.00	8.14%	40.83%	1,778.60	888.90	68.86%	15.61%

Data Source: NSE

In September 2025, 9 stocks have given returns of over 10%. In terms of sectoral mix; the top-15 had 4 Financial stocks (Poonawalla, PNB Housing, Chola, and Manappuram Finance); 4 Outsourcing plays (Redington, Kaynes, JBMA, Amber); and 2 Construction stocks (Anant Raj and NBCC). The rest were bottom-up plays. The worst performers in September 2025 by monthly returns were Crompton Greaves, BLS, Natco Pharma, Whirlpool, FSL, Gillette, Delhivery, and Chambal Fertilizers.

HOW DID SMALL CAPS DELIVER ON 1-YEAR RETURNS?

For the 92 small cap stocks with full data, the average 1-year return was -8.73%. A total of 30 stocks gave positive 1-year returns, while 62 stocks delivered negative returns for September 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
LAURUSLABS	840.00	-1.86%	81.04%	944.00	427.05	96.70%	11.02%
AMBER	8,120.00	13.27%	76.70%	8,497.00	4,580.00	77.29%	4.44%
WOCKPHARMA	1,507.00	9.59%	58.69%	1,868.80	915.00	64.70%	19.36%
REDINGTON	282.70	20.92%	55.80%	334.80	158.61	78.24%	15.56%
ASTERDM	626.00	3.71%	50.01%	675.00	387.10	61.72%	7.26%
NH	1,743.00	1.08%	47.21%	2,370.20	1,185.00	47.09%	26.46%
GRSE	2,540.50	6.03%	46.84%	3,538.40	1,184.90	114.41%	28.20%
DEEPAKFERT	1,501.00	8.14%	40.83%	1,778.60	888.90	68.86%	15.61%
RADICO	2,887.10	1.20%	39.76%	3,067.00	1,845.50	56.44%	5.87%
MANAPPURAM	282.30	8.15%	39.53%	298.00	138.35	104.05%	5.27%
MCX	7,806.00	7.44%	39.23%	9,115.00	4,408.15	77.08%	14.36%
NAVINFLUOR	4,610.50	-2.89%	32.75%	5,444.00	3,180.00	44.98%	15.31%
KAYNES	7,062.00	15.15%	26.97%	7,822.00	3,825.15	84.62%	9.72%
POONAWALLA	498.00	16.21%	26.71%	513.35	267.20	86.38%	2.99%
AFFLE	1,945.00	2.55%	22.43%	2,185.90	1,246.00	56.10%	11.02%

Data Source: NSE

On a yoy basis, the leaders were dominated by a mix of 4 Healthcare stocks (Laurus Labs, Wockhardt Pharma, Aster DM, Narayana Hrudayalaya); 3 Contract Manufacturing plays (Amber, Redington, Kaynes); 3 BFSI names (Manappuram Finance, MCX, Poonawalla); and 2 chemical stocks (Deepak Fertilizers and Navin Fluorine). The remaining stocks were spread out across sectors. At the bottom are companies like JBM Auto, Tejas Networks, Ola Electric, Whirlpool, Natco Pharma, FirstCry, Inox Wind and Cyient Ltd.

HOW RESILIENT WERE SMALL CAPS IN LAST ONE YEAR?

In terms of bounce from lows, small caps bounced 24.70%. Total of 8 stocks bounced over 80% from the lows, while 27 jumped over 50%. Top-15 average bounce was 86.65%.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
GRSE	2,540.50	6.03%	46.84%	3,538.40	1,184.90	114.41%	28.20%
MANAPPURAM	282.30	8.15%	39.53%	298.00	138.35	104.05%	5.27%
LAURUSLABS	840.00	-1.86%	81.04%	944.00	427.05	96.70%	11.02%
DELHIVERY	453.90	-6.01%	2.20%	489.10	236.53	91.90%	7.20%
DATAPATTNS	2,552.10	5.77%	6.64%	3,268.80	1,351.15	88.88%	21.93%
POONAWALLA	498.00	16.21%	26.71%	513.35	267.20	86.38%	2.99%
ANANTRAJ	696.00	35.40%	-3.10%	947.90	376.15	85.03%	26.57%
KAYNES	7,062.00	15.15%	26.97%	7,822.00	3,825.15	84.62%	9.72%
CREDITACC	1,345.70	-4.58%	10.92%	1,430.00	750.20	79.38%	5.90%
HINDCOPPER	328.67	38.96%	-7.27%	353.00	183.82	78.80%	6.89%
BEML	4,200.00	5.58%	9.23%	4,874.80	2,350.00	78.72%	13.84%
REDINGTON	282.70	20.92%	55.80%	334.80	158.61	78.24%	15.56%
ANANDRATHI	2,840.50	0.64%	-27.44%	3,090.40	1,594.00	78.20%	8.09%
AMBER	8,120.00	13.27%	76.70%	8,497.00	4,580.00	77.29%	4.44%
MCX	7,806.00	7.44%	39.23%	9,115.00	4,408.15	77.08%	14.36%

Data Source: NSE

On resilience score, the list was dominated by 5 Financial Inclusion stocks (Manappuram, Poonawalla, Credit Access, Anand Rathi Wealth, and MCX); 3 Defence Stocks (GRSE, Data Patterns, BEML); and 3 Outsourcing Plays (Kaynes, Redington, and Amber). The remaining stocks were spread out and largely mirrored the 1-year return rankings list. The list at the bottom included stocks like; Crompton, Jindal Saw, BLS, Piramal Pharma, Brigade, Cyient, IEX, Five Star Finance, and Tejas Networks.

HOW SMALL CAPS FARED ON THE SWING FACTOR?

In terms of proximity to the peak, the small cap index overall was 10.92% short of the peak. 14 stocks are less than 10% from the peak while 33 stocks are over 30% off the peak. That indicates a huge divergence in performance, albeit with improving bias.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
POONAWALLA	498.00	16.21%	26.71%	513.35	267.20	86.38%	2.99%
AMBER	8,120.00	13.27%	76.70%	8,497.00	4,580.00	77.29%	4.44%
MANAPPURAM	282.30	8.15%	39.53%	298.00	138.35	104.05%	5.27%
RADICO	2,887.10	1.20%	39.76%	3,067.00	1,845.50	56.44%	5.87%
CREDITACC	1,345.70	-4.58%	10.92%	1,430.00	750.20	79.38%	5.90%
AADHARHFC	514.35	1.71%	4.75%	547.80	346.05	48.63%	6.11%
GLAND	1,992.00	6.76%	11.99%	2,131.00	1,277.80	55.89%	6.52%
HINDCOPPER	328.67	38.96%	-7.27%	353.00	183.82	78.80%	6.89%
DELHIVERY	453.90	-6.01%	2.20%	489.10	236.53	91.90%	7.20%
ASTERDM	626.00	3.71%	50.01%	675.00	387.10	61.72%	7.26%
ANANDRATHI	2,840.50	0.64%	-27.44%	3,090.40	1,594.00	78.20%	8.09%
SHYAMMETL	913.20	0.40%	0.96%	1,001.00	628.25	45.36%	8.77%
KARURVYSYA	210.00	-0.08%	-1.53%	231.25	154.63	35.81%	9.19%
KAYNES	7,062.00	15.15%	26.97%	7,822.00	3,825.15	84.62%	9.72%
LAURUSLABS	840.00	-1.86%	81.04%	944.00	427.05	96.70%	11.02%

Data Source: NSE

In terms of proximity to the peak, the list is quite mixed with 6 financial inclusion stocks, 3 healthcare stocks, and 2 Outsourcing plays. Companies farthest from the peak were a mixed bag of stocks like Tejas Networks, PG Electroplast, Whirlpool, Newgen, FirstCry, Jindal Saw, Natco Pharma, and Cyient Ltd. While the divergence remains high in small caps, the overall swing factor appears to have marginally improved in the month of September 2025.