New Delhi: If 260 per cent post-listing return by Radhakishan Damani-led Avenue Supermarts (D-Mart) and 220 per cent return by Shankra Buildcon have made investors richer, there is no dearth of SME listings that have proved multibaggers for investors within a short time.
Data showed SME debutants such as Meera Industries, Lexus Granito Sarthak Metals and Salasar Technologies, among others, have delivered returns in excess of 100 per cent this calendar. Some of these issues debuted on the bourses only early this August.
Data showed Gujarat-based Meera Industries, whose issue size was as low as Rs 3.89 crore, has generated 177 per cent return over its issue price of Rs 36 since it got listed on May 15, 2017. The company, which manufactures and exports textile machinery to more than 18 countries, crossed the Rs 1 crore sales mark in the very first month of its operation of the yarn division facility and is gradually looking to ramp up the division over the next 6-12 months.
Gujarat and Maharashtra-based companies accounted for over 70 per cent of the 33 SME listings on BSE this calendar, which are a part of the BSE SME index, data on corporate database Capitaline showed.
With a 13-session trading history (including Monday), shares of Lexus Granito have surged 173 per cent over its issue price of Rs 45 to Rs 122. The market-cap of the company has swelled to Rs 236 crore from Rs 103.63 crore at listing on August 23. The company, established in 2007, manufactures ceramic and vitrified tiles.
“The SME platform has been vital for niche businesses. For example, we did the MRSS Majestic IPO close to two years back. This is the first company in market research to go public. Some of these businesses – known for their size or low cost levels – have seen a ray of hope. The kind of investor confidence we have got in some of these stocks has been phenomenal,” Mahavir Lunawat of Pantomath Capital Advisors told.
Shares of Chhattisgarh-registered Sarthak Metals, which offers modern metallurgical solutions for finetuning of steel have zoomed 173 per cent over its issue price of Rs 30. Tata Steel, SAIL, JSPL, JSW Steel, Bhushan Steel and Usha Martin are some of its clients.
Gujarat-based Prime Customer Services, which is engaged in sourcing, processing and distribution of agro products, has seen its shares rise 108 per cent since its listing on March 31. RMC Switchgears and Chemcrux Enterprises are other SME listings that delivered healthy 80-90 per cent returns.
“There are companies into hybrid seeds, there are companies in market research, there are companies in electronic hardware designs, IT and fashion. These are some of the examples where the businesses have been nurtured before these companies hit the capital market. We have seen huge response from investors across, and they have hugely liked some of these businesses. I am sure this will shape up new businesses in truest sense in the days and years to come,” Lunawat said.
There has seen concerns over the impact of GST implementation on the SME sector. But analysts are positive on the segment.
“Some SMEs fall below the GST bar, but the ones that fall within its ambit have been able to deal with it well. There was some slowdown in the quarterly numbers, as a number of companies – including SMEs – were destocking through this period. As we go forward, you will start seeing pickup in activity, including in the SME space,” said Surojit Shome, CEO, DBS India.
Source: Economic Times