Small caps subdued in July 2025; but healthcare stands out

4 Aug 2025 , 12:15 PM

SMALL CAPS – THE BIG MACRO STABILITY RISK

Small caps tend to be specifically vulnerable to crude prices, rupee value, and supply chain constraints. Many of these small caps are export oriented names, and the US penal tariffs could really hit them hard. A clearer picture of small cap performance will emerge in August. Small caps may have delivered 19.3% in the June quarter, but in July 2025, the small cap returns were negative at -5.7% for the month, and 6.1% for the full  year. Here is a quick look at small caps in the month of July 2025 from different standpoints.

SMALL CAP MOMENTUM NEGATIVE IN JULY 2025

In terms of 1-month returns, the Nifty Small Cap 100 depleted -5.71% in July 2025. Out of the 91 eligible stocks in the index, 24 stocks gave positive returns, while 67 stocks gave negative returns in July 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	875.20	17.20%	88.48%	922.50	417.70	109.53%	5.13%
LALPATHLAB	3,150.00	13.59%	1.95%	3,653.95	2,293.55	37.34%	13.79%
SHYAMMETL	981.95	12.81%	33.30%	1,001.00	628.25	56.30%	1.90%
AMBER	7,959.50	12.43%	83.72%	8,177.00	3,964.00	100.79%	2.66%
PGEL	816.00	12.26%	82.60%	1,054.20	404.00	101.98%	22.60%
NEULANDLAB	13,330.00	11.81%	51.64%	18,100.00	8,651.05	54.09%	26.35%
DELHIVERY	426.90	10.76%	5.26%	449.45	236.53	80.48%	5.02%
AADHARHFC	508.00	9.30%	13.57%	537.50	346.05	46.80%	5.49%
RAMCOCEM	1,170.10	9.28%	42.51%	1,209.00	777.80	50.44%	3.22%
GODIGIT	370.45	8.31%	5.53%	407.40	264.60	40.00%	9.07%
PEL	1,266.00	7.10%	20.19%	1,355.30	848.25	49.25%	6.59%
RADICO	2,730.00	6.43%	58.66%	2,786.90	1,628.00	67.69%	2.04%
SWANENERGY	467.00	5.74%	-38.33%	809.80	362.20	28.93%	42.33%
TATACHEM	982.45	5.59%	-12.24%	1,247.35	756.00	29.95%	21.24%
BLS	379.20	4.48%	5.73%	521.80	308.25	23.02%	27.33%

Data Source: NSE

In July 2025, 7 stocks have given returns of over 10%. In terms of sectoral mix; the top-15 had 3 Healthcare stocks (Laurus Labs, Lal Pathlabs, Neuland Pharma); and 2 digital enablement stocks (Delhivery and GODIGIT), while the rest were bottom-up plays. The worst performers in July 2025 by monthly returns were IEX, Zen Technologies, Newgen, Redington, Five Star Finance, KFIN Technologies, and CDSL.

DID SMALL CAPS DELIVER ON 1-YEAR RETURNS?

For the 91 small cap stocks with full data, the average 1-year return was -6.12%. A total of 38 stocks gave positive 1-year returns, while 53 stocks delivered negative returns for July 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	9,139.00	2.78%	115.46%	9,828.00	3,965.50	130.46%	7.01%
LAURUSLABS	875.20	17.20%	88.48%	922.50	417.70	109.53%	5.13%
AMBER	7,959.50	12.43%	83.72%	8,177.00	3,964.00	100.79%	2.66%
PGEL	816.00	12.26%	82.60%	1,054.20	404.00	101.98%	22.60%
MCX	7,664.00	-15.09%	79.34%	9,115.00	4,125.00	85.79%	15.92%
ASTERDM	605.45	2.58%	74.30%	675.00	344.05	75.98%	10.30%
RADICO	2,730.00	6.43%	58.66%	2,786.90	1,628.00	67.69%	2.04%
NH	1,923.00	-8.54%	52.45%	2,370.20	1,171.00	64.22%	18.87%
NEULANDLAB	13,330.00	11.81%	51.64%	18,100.00	8,651.05	54.09%	26.35%
WELCORP	929.00	2.11%	45.29%	994.00	600.60	54.68%	6.54%
RAMCOCEM	1,170.10	9.28%	42.51%	1,209.00	777.80	50.44%	3.22%
KAYNES	6,202.00	0.51%	38.95%	7,822.00	3,825.15	62.14%	20.71%
SHYAMMETL	981.95	12.81%	33.30%	1,001.00	628.25	56.30%	1.90%
NAVINFLUOR	5,052.00	3.28%	32.80%	5,444.00	3,160.40	59.85%	7.20%
AFFLE	1,940.10	-0.28%	29.66%	2,080.00	1,246.00	55.71%	6.73%

Data Source: NSE

On a yoy basis, the leaders were dominated by a mix of 4 Healthcare stocks (Laurus Labs, Aster DM, Narayana Hrudayalaya, and Neuland Labs); 3 Contract Manufacturing plays (Amber, PGEL, and Kaynes); and 2 FMCG names (Godfrey Philips, and Radico Khaitan). The remaining stocks were spread out across sectors. At the bottom are companies like RITES, Tejas Networks, Titagarh Wagons, Sonata Software, JWL, Aarti Industries, and HFCL.

HOW RESILIENT WERE SMALL CAPS IN LAST ONE YEAR?

In terms of bounce from lows, small caps bounced 27.57%. Total of 5 stocks bounced over 100% from the lows, while 29 jumped over 50%. Top-15 average bounce was 87.86%.

Stock Symbol	Market Price	1-Month Return	1-Year Return	52-week High	52-week Low	Bounce from Low	Distance to High
GODFRYPHLP	9,139.00	2.78%	115.46%	9,828.00	3,965.50	130.46%	7.01%
GRSE	2,611.00	-12.45%	8.58%	3,538.40	1,184.90	120.36%	26.21%
LAURUSLABS	875.20	17.20%	88.48%	922.50	417.70	109.53%	5.13%
PGEL	816.00	12.26%	82.60%	1,054.20	404.00	101.98%	22.60%
AMBER	7,959.50	12.43%	83.72%	8,177.00	3,964.00	100.79%	2.66%
DATAPATTNS	2,635.90	-9.84%	-17.17%	3,303.20	1,351.15	95.09%	20.20%
MCX	7,664.00	-15.09%	79.34%	9,115.00	4,125.00	85.79%	15.92%
MANAPPURAM	253.30	-9.01%	18.25%	284.90	138.35	83.09%	11.09%
DELHIVERY	426.90	10.76%	5.26%	449.45	236.53	80.48%	5.02%
ASTERDM	605.45	2.58%	74.30%	675.00	344.05	75.98%	10.30%
IIFL	471.75	1.83%	8.12%	560.60	279.80	68.60%	15.85%
BEML	3,957.00	-10.64%	-13.24%	4,874.80	2,350.00	68.38%	18.83%
RADICO	2,730.00	6.43%	58.66%	2,786.90	1,628.00	67.69%	2.04%
CREDITACC	1,241.20	-0.72%	-5.98%	1,401.30	750.20	65.45%	11.43%
NH	1,923.00	-8.54%	52.45%	2,370.20	1,171.00	64.22%	18.87%

Data Source: NSE

On resilience score, the list was dominated by Financial inclusion (MCX, Manappuram, IIFL, and Credit Access); Defence Stocks (GRSE, Data Patterns, and BEML); and Healthcare (Laurus Labs, Aster DM, and Narayana Hrudayalaya). The remaining stocks were spread out and mirrored the 1-year return rankings list. The list at the bottom included stocks like; Five Star Finance, Tejas Networks, IEX, RK Forgings, Bata India, HFCL, and Cyient.

HOW SMALL CAPS FARED ON THE SWING FACTOR?

In terms of proximity to the peak, the small cap index overall was 8.87% short of the peak. A total of 14 stocks are less than 10% to the peak while 42 stocks are over 30% off the peak. That shows 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
SHYAMMETL	981.95	12.81%	33.30%	1,001.00	628.25	56.30%	1.90%
RADICO	2,730.00	6.43%	58.66%	2,786.90	1,628.00	67.69%	2.04%
AMBER	7,959.50	12.43%	83.72%	8,177.00	3,964.00	100.79%	2.66%
RAMCOCEM	1,170.10	9.28%	42.51%	1,209.00	777.80	50.44%	3.22%
KARURVYSYA	266.00	-3.78%	14.22%	277.50	185.55	43.36%	4.14%
DELHIVERY	426.90	10.76%	5.26%	449.45	236.53	80.48%	5.02%
LAURUSLABS	875.20	17.20%	88.48%	922.50	417.70	109.53%	5.13%
AADHARHFC	508.00	9.30%	13.57%	537.50	346.05	46.80%	5.49%
WELCORP	929.00	2.11%	45.29%	994.00	600.60	54.68%	6.54%
PEL	1,266.00	7.10%	20.19%	1,355.30	848.25	49.25%	6.59%
AFFLE	1,940.10	-0.28%	29.66%	2,080.00	1,246.00	55.71%	6.73%
GODFRYPHLP	9,139.00	2.78%	115.46%	9,828.00	3,965.50	130.46%	7.01%
NAVINFLUOR	5,052.00	3.28%	32.80%	5,444.00	3,160.40	59.85%	7.20%
GODIGIT	370.45	8.31%	5.53%	407.40	264.60	40.00%	9.07%
ASTERDM	605.45	2.58%	74.30%	675.00	344.05	75.98%	10.30%

Data Source: NSE

In terms of proximity to the peak, the list is quite mixed with a smattering of financial inclusion stocks, FMCG plays, EMS stocks, healthcare, and a strong digital presence. Companies farthest from the peak were a mixed bag of stocks like Tejas Networks, HFCL, ITI, Sonata Software, Titagarh Wagons, Aarti Industries, Birlasoft, and RK Forgings. While the overall swing factor has stabilized for small caps, the divergence is still very substantial!