The Indian stock market has been on a rollercoaster ride this year. Inflationary pressures, interest rate hikes, foreign portfolio sell-off, a depreciating rupee, rising crude oil prices and the geopolitical crises made for the perfect storm. Through it all, the Adani Group company stocks posted stellar returns. Most Adani stocks delivered triple-digit returns in the last one year, with Adani Power delivering the highest returns (+291%)* amongst them. So, all power to you if you held these stocks (pun intended). But, ICYDK, returns from these two small cap stocks have out-powered returns of even the Adani Power stock in the last year.
Mirza International
Leaving their mark, one step at a time!
- Mirza International, maker of the REDTAPE brand of shoes, is a leather footwear manufacturer and exporter with a market cap of ₹3,976 crore.
- Mirza International’s share price marched up from ₹57.3 in Sept ‘21 to ₹330.4 in Sept ‘22* due to a post-pandemic bounce back in its financial performance.
- For FY22, its return ratios (RoE, RoCE) were above 15% and Debt to Equity ratio was as low as 0.1x.
- Nearly 70% of its revenues come from domestic sales. It also exports white-labeled footwear to various countries.
TGV SRAAC
Powering through, one project at a time!
- TGV SRAAC (formerly known as Sree Rayalaseema Alkalies & Allied Chemicals) produces Chlor-Alkali products like caustic soda and chlorine.
- It has a market cap of ₹1,781 crore
- TGV SRAAC’s share price went from ₹38.8 in Sept ‘21 to ₹166.3 in Sept ‘22*
- This is due to a rise in caustic soda prices which helped their operating margins to double and profits to grow multifold in recent quarters.
- TGV SRAAC has also steadily reduced its debt:equity ratio to 0.5x in FY22.
Give this a 👍 if you have invested in any of these stocks!
*Data captured between 17th September 2021 to 19th September 2022