Microcap stocks in focus: Shares of Va Tech Wabag, Reliance Infrastructure, Refex Industries, Gopal Snacks, Prince Pipes & Fittings, Subros, and Neogen Chemicals are among 18 micro-cap stocks that defied market volatility to deliver double-digit gains over the past week.
Despite the back-and-forth movement in frontline indices amid global headwinds—including rising trade tensions, US fiscal concerns, and higher bond yields—as well as positive domestic tailwinds such as reports of India becoming the fourth-largest economy, the RBI’s bumper dividend, and a steady rise in the rupee, several often-overlooked micro-cap stocks have managed to shine amid ongoing market volatility.
These stocks span sectors such as pharma, FMCG, industrials, utilities, chemicals & petrochemicals, and fertilisers. Some counters witnessed a spike in demand following the release of their March quarter results, while others rallied on the back of recent order wins and value buying at lower levels.
The Nifty Microcap 250 index rose 2.33% over the past week and 9% over the past month, outperforming the Nifty 50, which gained 0.30% and 3% during the same periods.
Pharma stocks shine in weekly rally
Shilpa Medicare’s stock surged 24.3% over the past week, pushing its May gains to 36%, the highest monthly rise since February 2020. The rally is driven by multiple positive developments, including its subsidiary Shilpa Pharma Lifesciences receiving an EIR from the USFDA and its biologics arm obtaining European GMP certification for its Dharwad facility, with zero inspection observations.
Dishman Carbogen Amcis is another stock from the pharma pack that maintained a steady upward trajectory, gaining 22.2% in a week. Enviro Infra Engineers’ shares also jumped 20%, while those of Prince Pipes & Fittings, Sequent Scientific, Gopal Snacks, and Refex Industries delivered returns of up to 14%.
| Stock Name | Returns in last one week |
|---|---|
| Shilpa Medicare | 24% |
| Dishman Carbogen Amics | 22.2% |
| Enviro Infra Engineers | 20% |
| Prince Pipes & Fittings | 17.3% |
| Sequent Scientific | 15.8% |
| Gopal Snacks | 14.4% |
| Refex Industries | 13.8% |
| Va Tech Wabag | 12.9% |
| Subros | 12% |
| Venus Pipes & Tubes | 11.9% |
| Reliance Infrastructure | 11.7% |
| ITD Cementation India | 11.4% |
| ISGEC Heavy Engineering | 10.8% |
| Kaveri Seed Company | 10.3% |
| Neogen Chemicals | 10.1% |
| Transrail Lighting | 10.1% |
| India Glycols | 10% |
| Lloyds Enterprises | 10% |
| Source: Trendlyne | |
On the back of steady order wins, coupled with a healthy performance in the March quarter, Va Tech Wabag’s share price jumped 13% in a week. The Indian water treatment company has secured new orders worth roughly ₹57 billion this year, increasing its order book to around ₹137 billion, including framework agreements.
Likewise, Reliance Infrastructure’s share price also surged 12%. The company-promoted Reliance Defence and Düsseldorf-based Rheinmetall AG entered into a strategic partnership in the field of ammunition on May 22.
This marks the third major partnership for Reliance Defence, following its successful strategic alliances with Dassault Aviation and the Thales Group of France, the company said in its May 23 press release.
Indian stock market likely to consolidate near current levels, says expert
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the market is likely to consolidate around current levels in the near term. With mutual funds holding sizeable cash reserves, any dip is expected to be bought into, while high valuations may lead to selling on rallies. He noted that a sustained rally will only occur once leading indicators point to a revival in earnings growth, which may take some time.
Vijayakumar also highlighted a slow accumulation in rate-sensitive sectors like autos, driven by expectations of further rate cuts amid declining inflation. Additionally, he pointed out that investors are now staying invested through SIPs for longer periods than before, which is expected to provide underlying support to the market.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
