The year 2014 has been an outstanding year for Indian equity markets with the Sensex and Nifty giving returns of around 30 per cent. Benign global liquidity and improving macro fundamentals of India have attracted foreign flows of around Rs 1 lakh crore in to Indian equities in 2014. The gains in midcap and smallcap stocks were even better. The BSE smallcap index surged around 70 per cent, while the BSE midcap index gave a return of around 55 per cent in 2014.
Here are some of the small cap stocks that saw big gains during the year.
1) JBM Auto: Shares of auto ancillary player JBM Auto surged nearly 850 per cent in the past one year. It is engaged in the manufacture of sheet metal components, assemblies, sub-assemblies, tools, dies and moulds. JBM Auto is a tier-1 supplier to the original equipment manufacturer (OEM) industry. Its clients include Ashok Leyland, Bajaj Auto, Fiat, Ford, and Honda. The company had reported over 130 per cent year-on-year (y-o-y) jump in its net profit to Rs 7.3 crore in the quarter ended September 30, 2014. In the month of October the company declared a 1:1 bonus issue and split stock in the ratio 2:1.
2) Ahluwalia Contracts: Shares of this construction company surged 700 per cent in this year. The company has a strong foothold in the construction industry with specialized experience in executing large buildings, multi-storeyed housing complexes and township development projects. The company is among a select group of 3-4 contractors who are pre-qualified to bid for most of the mega building projects in the country. The company is also in talks with power companies to build power projects. Ahluwalia Contracts reported a strong recovery in its earnings for the quarter ended September 30, 2014. Its profit in the quarter grew over 1,300 per cent y-o-y to Rs 16.23 crore.
3) 8K Miles Software Services: The stock has given a return of over 600 per cent in the past one year. 8K MILES helps enterprise and small and medium businesses integrate cloud computing into their information technology and business strategies. The company had reported solid growth in its net profit and revenue for the quarter ended September 30, 2014. Its net profit in the quarter grew 170 per cent y-o-y to Rs 4.98 crore, while its revenues recorded a y-o-y growth of 200 per cent to Rs 27.08 crore.
4) Kitex Garments: The stock surged around 515 per cent in 2014. Kitex Garments is the textile arm of the Anna Group of Kerala. It is one of the top cotton greige suppliers in Kerala and provides raw materials to retailers/ manufacturers like Mother Care, Jockey, and Wal-Mart. The company had reported strong growth in its profitability for the quarter ended September 30, 2014. Its net profit in the quarter grew 61 per cent y-o-y to Rs 19.32 crore, while its revenue surged nearly 29 per cent y-o-y to Rs 121 crore.
5) Hitachi Home and Life Solutions (India): Its shares have gained around 480 per cent in past one year. The company is a subsidiary of Hitachi Appliance Inc, Japan. The home appliance maker manufactures a diverse range of products including air-conditioners, commercial air-conditioners, and chillers. The company has witnessed significant surge in its profitability over last the six months. For the six months ended September 30, 2014, the company had reported a net profit of Rs 52.1 crore against Rs 7.1 crore in the same period last fiscal.
6) Global Offshore Services: The stock has given a handsome return of 475 per cent in this year. Global Offshore Services was earlier known as Garware Offshore Services. The company's vessels support oil and gas exploration activities and are presently employed with various exploration and production companies. The company works with E&P players like ONGC, British Gas, Transocean, Total E&P. In terms of financials the company had a bad quarter in September 2014, where its profitability dropped sequentially, but the company expects its profitability to improve in the coming quarter due to deployment of its new vessel M.V. Olympus.