Kaynes Technology to Blue Star: Top five best performing NIFTY Smallcap 100 stocks

NIFTY Smallcap 100 is a basket of 100 stocks that reflects the behaviour and performance of the small-cap segment of the financial market. As of September 30, 2024, this index represents about 5% of the free-float market capitalisation of the NSE.

On a year-to-date(YTD) basis, the NSE Smallcap 100 has delivered 23.70% in 2024 outperfoming benchmark NIFTY50 index which has delivered 9.19% return. This rally has been led by constituent stocks like Kaynes Technologies, Aegis Logistics, IFCI, Blue Star, and CDSL, which posted triple-digit returns in 2024 on a YTD basis.

Through this article, let's know the key triggers for these stocks in 2024.

The stock has benefited from industry tailwinds leading to a robust order book, double-digit revenue growth, and strong revenue guidance. The EMS sector in recent years has experienced investor interest due to favourable government policies such as the Production-Linked Incentive Scheme and China +1 agenda by global manufacturers. Q2 FY25, the company reported revenue of ₹572 crore growing at 48.46% YoY with a margin of 14.4% and a profit after tax of ₹60 crore.

Through its new semiconductor facility in Gujarat, the company is aiming ₹4,000 crore in revenue by 2029-30. The company has incurred ₹3,300 crore capex in the semiconductor unit to focus on advanced packaging to enhance margins.

Financially in Q2FY25, Aegis Logistics reported net sales at ₹1,750.42 crore, 41.75% YoY. The net profit at ₹125.96 crore in 0.8% YoY from ₹126.98 crore.

Additionally, the company has invested ₹300 crore in its subsidiary, Aegis Vopak Terminals Ltd (AVTL), which plans for ₹4000 crore IPO. Currently Aegis Group is one of the important tank terminal operators in India.

In Q2FY25 revealing a mixed financial performance. With IFCI revenue increased by 7.47% YoY to ₹586.91 crore, and profit declined by 12.73% YoY to ₹82.62 crore. However, on a sequential basis, IFCI experienced significant growth, with revenue rising by 57.08% and profit soaring by 176.36%. The recent IFCI’s board approval for the merger of IFCI Group companies after intimation from the Ministry of Finance's Department of Financial Services (DFS) asked the company to consider consolidation of IFCI Group as also garnering interest buying interest.

In Q2FY25, the company’s revenue from operations grew over 20% YoY to ₹2,276 crore and profit after tax grew over 35% to ₹96 crore. Further, as of September 30, 2024, the company’s carried-forward order book grew nearly 10% YoY to ₹6,598.20 crore.

The strong domestic investors' participation in the capital market and shifting preference of the public at large from traditional saving instruments to risky market-based instruments has benefited CDSL resulting in strong growth in CDSL revenue, with its last four quarters witnessing more than 50% YoY growth.

In Q2FY25, CDSL reported a 48.8% YoY increase in net profit at ₹162 crore, the revenue from operations rose 55.5% to ₹322.3 crore. CDSL is the only depository that can cross 13.5 crore demat accounts.

Conclusion

NSE Small cap 100 outperformed with 23.70% YTD in 2024; stocks such as Kaynes Technologies, Aegis Logistics, IFCI, Blue Star, and CDSL surged up to 177% return in 2024 on a YTD basis, doubling investors' wealth. The topline growth led by the industry tailwind has driven stocks such as CDSL, Kaynes Technologies and Blue Star. However, Aegis Logistics and IFCI strategic initiatives supported the stock rally.