BSE Smallcap stocks surge with multiple upper circuit hits

Several stocks from the BSE Smallcap index were locked at their respective upper circuits on Monday, reflecting a strong rally in smaller stocks. A total of 463 stocks saw their upper circuits triggered during intra-day trade, with notable names such as Ramco Systems, Cochin Shipyard, and Pudumjee Paper Products among the top performers.

Ramco Systems hits 52-week high amid optimism

Shares of Ramco Systems surged by 20 per cent to Rs 501.80, marking its 52-week high. The sharp rise in its stock price was driven by strong expectations regarding the company’s future revenue and earnings growth. The cloud-based technology company, known for its ERP, HCM, and aviation software, is benefitting from a healthy order book, better project execution, and ongoing cost optimization initiatives. Heavy volumes of trade also contributed to the upward movement, as investors remained optimistic about the company’s prospects.

Cochin Shipyard contracts boost sentiment

Cochin Shipyard Ltd (CSL) shares were locked in the 5 per cent upper circuit at Rs 1,655.75 after the company announced securing a contract with the Ministry of Defence for the Short Refit and Dry Docking of INS Vikramaditya. With a contract value exceeding Rs 1,208 crore and an estimated duration of five months, the project is a significant milestone for CSL, reinforcing its position as a key player in the Maintenance, Repair, and Overhaul (MRO) sector. The project is expected to generate employment for over 3,500 people and involve nearly 50 MSMEs, further supporting India's industrial ecosystem.

Pudumjee Paper Products sees explosive growth

Pudumjee Paper Products shares soared 20 per cent to a 52-week high of Rs 186.35, driven by a six-fold increase in trading volumes. The company, which manufactures biodegradable and compostable specialty papers, reported a 69 per cent year-on-year increase in net profit for the September quarter, reaching Rs 29.76 crore. The strong growth in demand for sustainable packaging solutions in sectors such as food, pharmaceuticals, and hygiene products has significantly contributed to the company’s positive performance. Since November, Pudumjee’s stock price has surged by 54 per cent, reflecting investor confidence.

Market performance and outlook

The BSE Smallcap and Midcap indices outperformed the broader market, with a 0.7 per cent gain compared to the 0.4 per cent rise in the BSE Sensex. With stocks like Ramco Systems and Pudumjee Paper Products showing impressive growth, the outlook for the smallcap sector remains positive as investors seek opportunities in emerging growth stocks.