Small caps retreat in August 2025; but BFSI and digital plays shine

2 Sep 2025 , 03:34 PM

SMALL CAPS – TOO EARLY FOR ALPHA HUNTING YET!

Small caps saw a good deal of fear factor built into them in the light of Trump tariffs. With the 50% tariffs effective, many small cap and MSME stocks have taken a hit. The pressure was visible in August. After gaining 19.37% in the June quarter, the months of July and August have been a return to hard reality as the index has lost over 11%. For August 2025, small cap returns were negative at -5.12% for the month, and -10.34% for the full year. Here is a quick look at small caps in the month of August 2025 from different perspectives.

SMALL CAP MOMENTUM NEGATIVE IN AUGUST 2025

In terms of 1-month returns, the Nifty Small Cap 100 fell by -5.12% in August 2025. Out of the 92 eligible stocks in the index, 20 stocks gave positive returns, while 72 stocks gave negative returns in August 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
GODFRYPHLP	10,975.00	17.18%	79.50%	11,465.00	4,112.45	166.87%	4.27%
DELHIVERY	469.35	14.40%	12.27%	480.70	236.53	98.43%	2.36%
PVRINOX	1,125.00	13.39%	-25.80%	1,748.00	830.00	35.54%	35.64%
CREDITACC	1,395.00	12.91%	17.37%	1,410.60	750.20	85.95%	1.11%
KPIL	1,240.20	11.13%	-6.06%	1,449.00	786.30	57.73%	14.41%
KAYNES	6,124.00	8.60%	28.91%	7,822.00	3,825.15	60.10%	21.71%
LALPATHLAB	3,315.00	6.77%	-1.48%	3,653.95	2,293.55	44.54%	9.28%
DEVYANI	174.15	5.67%	-0.99%	222.74	134.00	29.96%	21.81%
RADICO	2,852.20	5.20%	56.94%	2,940.00	1,805.00	58.02%	2.99%
FSL	351.25	5.07%	13.65%	422.30	270.00	30.09%	16.82%
FIRSTCRY	363.00	4.34%	-42.35%	734.00	286.05	26.90%	50.54%
POONAWALLA	431.80	4.24%	9.94%	483.40	267.20	61.60%	10.67%
NEWGEN	885.50	3.59%	-17.02%	1,798.90	758.20	16.79%	50.78%
IEX	139.65	2.76%	-32.04%	244.40	130.26	7.21%	42.86%
MANAPPURAM	261.75	1.91%	20.75%	284.90	138.35	89.19%	8.13%

Data Source: NSE

In August 2025, 5 stocks have given returns of over 10%. In terms of sectoral mix; the top-15 had 4 Consumer stocks (Godfrey Phillip, PVR Inox, Devyani, Radico); 3 BFSI stocks (Credit Access, Poonawalla, Manappuram); and 2 Digital Enablement stocks (Delhivery and First Cry). The rest were bottom-up plays. The worst performers in August 2025 by monthly returns were PG Electroplast, PNB Housing, Welspun Universal, Karur Vysya, Angel One, Aarti Industries, and Sonata Software.

HOW DID SMALL CAPS DELIVER ON 1-YEAR RETURNS?

For the 92 small cap stocks with full data, the average 1-year return was -10.34%. A total of 27 stocks gave positive 1-year returns, while 65 stocks delivered negative returns for August 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	855.00	-2.79%	87.18%	922.50	427.05	100.21%	7.32%
GODFRYPHLP	10,975.00	17.18%	79.50%	11,465.00	4,112.45	166.87%	4.27%
AMBER	7,273.00	-9.61%	59.49%	8,177.00	4,266.10	70.48%	11.06%
RADICO	2,852.20	5.20%	56.94%	2,940.00	1,805.00	58.02%	2.99%
ASTERDM	601.00	1.40%	49.46%	675.00	387.10	55.26%	10.96%
MCX	7,380.00	-5.10%	47.66%	9,115.00	4,408.15	67.42%	19.03%
NAVINFLUOR	4,700.00	-9.68%	42.92%	5,444.00	3,160.40	48.72%	13.67%
NH	1,752.00	-9.50%	38.48%	2,370.20	1,185.00	47.85%	26.08%
GRSE	2,363.00	-8.00%	33.84%	3,538.40	1,184.90	99.43%	33.22%
AADHARHFC	504.00	-0.91%	31.01%	537.50	346.05	45.64%	6.23%
KAYNES	6,124.00	8.60%	28.91%	7,822.00	3,825.15	60.10%	21.71%
RAMCOCEM	1,048.90	-12.87%	27.54%	1,209.00	788.20	33.08%	13.24%
MANAPPURAM	261.75	1.91%	20.75%	284.90	138.35	89.19%	8.13%
REDINGTON	240.85	-9.27%	19.38%	334.80	158.61	51.85%	28.06%
WELCORP	838.65	-10.54%	19.00%	994.00	650.15	28.99%	15.63%

Data Source: NSE

On a yoy basis, the leaders were dominated by a mix of 3 Healthcare stocks (Laurus Labs, Aster DM, Narayana Hrudayalaya); 3 Contract Manufacturing plays (Amber, Kaynes, Redington); and 3 BFSI names (MCX, Aadhar Housing Finance, Manappuram Finance). The remaining stocks were spread out across sectors. At the bottom are companies like JBM Auto, RITES, Tejas Networks, HFCL, NBCC, Sonata Software, and Welspun Universal.

HOW RESILIENT WERE SMALL CAPS IN LAST ONE YEAR?

In terms of bounce from lows, small caps bounced 22.31%. Total of 6 stocks bounced over 80% from the lows, while 19 jumped over 50%. Top-15 average bounce was 80.81%.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
GODFRYPHLP	10,975.00	17.18%	79.50%	11,465.00	4,112.45	166.87%	4.27%
LAURUSLABS	855.00	-2.79%	87.18%	922.50	427.05	100.21%	7.32%
GRSE	2,363.00	-8.00%	33.84%	3,538.40	1,184.90	99.43%	33.22%
DELHIVERY	469.35	14.40%	12.27%	480.70	236.53	98.43%	2.36%
MANAPPURAM	261.75	1.91%	20.75%	284.90	138.35	89.19%	8.13%
CREDITACC	1,395.00	12.91%	17.37%	1,410.60	750.20	85.95%	1.11%
DATAPATTNS	2,397.00	-7.33%	-13.48%	3,268.80	1,351.15	77.40%	26.67%
AMBER	7,273.00	-9.61%	59.49%	8,177.00	4,266.10	70.48%	11.06%
MCX	7,380.00	-5.10%	47.66%	9,115.00	4,408.15	67.42%	19.03%
BEML	3,855.00	-4.46%	0.41%	4,874.80	2,350.00	64.04%	20.92%
POONAWALLA	431.80	4.24%	9.94%	483.40	267.20	61.60%	10.67%
KAYNES	6,124.00	8.60%	28.91%	7,822.00	3,825.15	60.10%	21.71%
RADICO	2,852.20	5.20%	56.94%	2,940.00	1,805.00	58.02%	2.99%
KPIL	1,240.20	11.13%	-6.06%	1,449.00	786.30	57.73%	14.41%
ASTERDM	601.00	1.40%	49.46%	675.00	387.10	55.26%	10.96%

Data Source: NSE

On resilience score, the list was dominated by Financial Inclusion stocks (Manappuram, Credit Access, MCX, Poonawalla); Defence Stocks (GRSE, Data Patterns, and BEML); and Healthcare (Laurus Labs, Aster DM). The remaining stocks were spread out and largely mirrored the 1-year return rankings list. The list at the bottom included stocks like; Piramal Pharma, PNB Housing, Five Star Finance, HFCL, RK Forge, Welspun Universal, and Inox Wind.

HOW SMALL CAPS FARED ON THE SWING FACTOR?

In terms of proximity to the peak, the small cap index overall was 12.63% short of the peak. 11 stocks are less than 10% from the peak while 49 stocks are over 30% off the peak. That indicates a huge divergence in performance of small caps, with negative bias.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
CREDITACC	1,395.00	12.91%	17.37%	1,410.60	750.20	85.95%	1.11%
DELHIVERY	469.35	14.40%	12.27%	480.70	236.53	98.43%	2.36%
RADICO	2,852.20	5.20%	56.94%	2,940.00	1,805.00	58.02%	2.99%
GODFRYPHLP	10,975.00	17.18%	79.50%	11,465.00	4,112.45	166.87%	4.27%
AADHARHFC	504.00	-0.91%	31.01%	537.50	346.05	45.64%	6.23%
LAURUSLABS	855.00	-2.79%	87.18%	922.50	427.05	100.21%	7.32%
KARURVYSYA	212.50	-17.31%	-4.17%	231.25	154.63	37.42%	8.11%
MANAPPURAM	261.75	1.91%	20.75%	284.90	138.35	89.19%	8.13%
AFFLE	1,899.60	-3.82%	16.06%	2,080.00	1,246.00	52.46%	8.67%
LALPATHLAB	3,315.00	6.77%	-1.48%	3,653.95	2,293.55	44.54%	9.28%
SHYAMMETL	905.95	-8.15%	16.00%	1,001.00	628.25	44.20%	9.50%
POONAWALLA	431.80	4.24%	9.94%	483.40	267.20	61.60%	10.67%
ASTERDM	601.00	1.40%	49.46%	675.00	387.10	55.26%	10.96%
AMBER	7,273.00	-9.61%	59.49%	8,177.00	4,266.10	70.48%	11.06%
GODIGIT	357.00	-3.62%	-3.38%	407.40	264.60	34.92%	12.37%

Data Source: NSE

In terms of proximity to the peak, the list is quite mixed with a smattering of financial inclusion stocks, healthcare, and digital enablement plays. Companies farthest from the peak were a mixed bag of stocks like Tejas Networks, HFCL, ITI, Newgen, First Cry, Sonata Software, PG Electroplast etc. While the divergence remains high in small caps, the overall swing factor appears to have steadily worsened in the last 2 months.